LPL FINANCIAL HOLDINGS INC (LPLA) Fundamental Analysis & Valuation

NASDAQ:LPLA • US50212V1008

Current stock price

320.51 USD
-0.49 (-0.15%)
At close:
320.51 USD
0 (0%)
After Hours:

This LPLA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. LPLA Profitability Analysis

1.1 Basic Checks

  • LPLA had positive earnings in the past year.
  • LPLA had a negative operating cash flow in the past year.
  • LPLA had positive earnings in each of the past 5 years.
  • Of the past 5 years LPLA 4 years had a positive operating cash flow.
LPLA Yearly Net Income VS EBIT VS OCF VS FCFLPLA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B

1.2 Ratios

  • LPLA's Return On Assets of 4.67% is fine compared to the rest of the industry. LPLA outperforms 66.67% of its industry peers.
  • LPLA has a Return On Equity of 16.15%. This is in the better half of the industry: LPLA outperforms 75.42% of its industry peers.
  • LPLA's Return On Invested Capital of 10.62% is amongst the best of the industry. LPLA outperforms 85.42% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for LPLA is significantly above the industry average of 7.30%.
Industry RankSector Rank
ROA 4.67%
ROE 16.15%
ROIC 10.62%
ROA(3y)7.63%
ROA(5y)7.51%
ROE(3y)34.52%
ROE(5y)34.02%
ROIC(3y)13.64%
ROIC(5y)13.73%
LPLA Yearly ROA, ROE, ROICLPLA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • The Profit Margin of LPLA (5.08%) is worse than 64.58% of its industry peers.
  • LPLA's Profit Margin has declined in the last couple of years.
  • LPLA has a Operating Margin of 12.12%. This is in the lower half of the industry: LPLA underperforms 65.00% of its industry peers.
  • In the last couple of years the Operating Margin of LPLA has remained more or less at the same level.
  • LPLA has a better Gross Margin (98.95%) than 98.75% of its industry peers.
  • LPLA's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.12%
PM (TTM) 5.08%
GM 98.95%
OM growth 3Y-6.5%
OM growth 5Y-0.58%
PM growth 3Y-19.76%
PM growth 5Y-8.79%
GM growth 3Y-0.02%
GM growth 5Y0.03%
LPLA Yearly Profit, Operating, Gross MarginsLPLA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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5

2. LPLA Health Analysis

2.1 Basic Checks

  • The number of shares outstanding for LPLA has been increased compared to 1 year ago.
  • Compared to 5 years ago, LPLA has more shares outstanding
  • Compared to 1 year ago, LPLA has an improved debt to assets ratio.
LPLA Yearly Shares OutstandingLPLA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
LPLA Yearly Total Debt VS Total AssetsLPLA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • LPLA has an Altman-Z score of 3.23. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of LPLA (3.23) is better than 77.08% of its industry peers.
  • A Debt/Equity ratio of 1.36 is on the high side and indicates that LPLA has dependencies on debt financing.
  • The Debt to Equity ratio of LPLA (1.36) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF N/A
Altman-Z 3.23
ROIC/WACCN/A
WACCN/A
LPLA Yearly LT Debt VS Equity VS FCFLPLA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B

2.3 Liquidity

  • LPLA has a Current Ratio of 2.30. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
  • LPLA has a Current ratio of 2.30. This is in the better half of the industry: LPLA outperforms 78.33% of its industry peers.
  • LPLA has a Quick Ratio of 2.30. This indicates that LPLA is financially healthy and has no problem in meeting its short term obligations.
  • LPLA's Quick ratio of 2.30 is fine compared to the rest of the industry. LPLA outperforms 78.33% of its industry peers.
Industry RankSector Rank
Current Ratio 2.3
Quick Ratio 2.3
LPLA Yearly Current Assets VS Current LiabilitesLPLA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. LPLA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 21.76% over the past year.
  • LPLA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.51% yearly.
  • The Revenue has grown by 37.18% in the past year. This is a very strong growth!
  • Measured over the past years, LPLA shows a very strong growth in Revenue. The Revenue has been growing by 23.68% on average per year.
EPS 1Y (TTM)21.76%
EPS 3Y20.33%
EPS 5Y25.51%
EPS Q2Q%23.06%
Revenue 1Y (TTM)37.18%
Revenue growth 3Y25.47%
Revenue growth 5Y23.68%
Sales Q2Q%41.84%

3.2 Future

  • Based on estimates for the next years, LPLA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.88% on average per year.
  • LPLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.22% yearly.
EPS Next Y20.11%
EPS Next 2Y20.78%
EPS Next 3Y19.44%
EPS Next 5Y15.88%
Revenue Next Year21.99%
Revenue Next 2Y17.68%
Revenue Next 3Y10.51%
Revenue Next 5Y12.22%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
LPLA Yearly Revenue VS EstimatesLPLA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B
LPLA Yearly EPS VS EstimatesLPLA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10 20 30 40 50

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5

4. LPLA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 15.95, which indicates a correct valuation of LPLA.
  • The rest of the industry has a similar Price/Earnings ratio as LPLA.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, LPLA is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 13.28, LPLA is valued correctly.
  • The rest of the industry has a similar Price/Forward Earnings ratio as LPLA.
  • LPLA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.95
Fwd PE 13.28
LPLA Price Earnings VS Forward Price EarningsLPLA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LPLA indicates a rather cheap valuation: LPLA is cheaper than 83.75% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.22
LPLA Per share dataLPLA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150 200

4.3 Compensation for Growth

  • LPLA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of LPLA may justify a higher PE ratio.
  • LPLA's earnings are expected to grow with 19.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)0.63
EPS Next 2Y20.78%
EPS Next 3Y19.44%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. LPLA Dividend Analysis

5.1 Amount

  • LPLA has a yearly dividend return of 0.38%, which is pretty low.
  • Compared to an average industry Dividend Yield of 6.46, LPLA is paying slightly less dividend.
  • With a Dividend Yield of 0.38, LPLA pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.38%

5.2 History

  • The dividend of LPLA has a limited annual growth rate of 4.26%.
  • LPLA has been paying a dividend for at least 10 years, so it has a reliable track record.
  • LPLA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.26%
Div Incr Years0
Div Non Decr Years12
LPLA Yearly Dividends per shareLPLA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • 10.94% of the earnings are spent on dividend by LPLA. This is a low number and sustainable payout ratio.
  • LPLA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.94%
EPS Next 2Y20.78%
EPS Next 3Y19.44%
LPLA Yearly Income VS Free CF VS DividendLPLA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M -500M 1B 1.5B
LPLA Dividend Payout.LPLA Dividend Payout, showing the Payout Ratio.LPLA Dividend Payout.PayoutRetained Earnings

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LPLA Fundamentals: All Metrics, Ratios and Statistics

LPL FINANCIAL HOLDINGS INC

NASDAQ:LPLA (4/24/2026, 5:20:01 PM)

After market: 320.51 0 (0%)

320.51

-0.49 (-0.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-29
Earnings (Next)04-30
Inst Owners103.38%
Inst Owner Change0.06%
Ins Owners0.38%
Ins Owner Change1.34%
Market Cap25.70B
Revenue(TTM)16.99B
Net Income(TTM)863.02M
Analysts80.95
Price Target432.3 (34.88%)
Short Float %4.69%
Short Ratio3.34
Dividend
Industry RankSector Rank
Dividend Yield 0.38%
Yearly Dividend1.22
Dividend Growth(5Y)4.26%
DP10.94%
Div Incr Years0
Div Non Decr Years12
Ex-Date03-10
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.81%
Min EPS beat(2)3.95%
Max EPS beat(2)13.68%
EPS beat(4)4
Avg EPS beat(4)7.58%
Min EPS beat(4)3.95%
Max EPS beat(4)13.68%
EPS beat(8)8
Avg EPS beat(8)7.14%
EPS beat(12)11
Avg EPS beat(12)5.23%
EPS beat(16)15
Avg EPS beat(16)5.77%
Revenue beat(2)1
Avg Revenue beat(2)1.86%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)5.13%
Revenue beat(4)2
Avg Revenue beat(4)1.03%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)5.13%
Revenue beat(8)4
Avg Revenue beat(8)1.04%
Revenue beat(12)5
Avg Revenue beat(12)0.45%
Revenue beat(16)8
Avg Revenue beat(16)0.94%
PT rev (1m)-5.55%
PT rev (3m)-4.68%
EPS NQ rev (1m)-4.63%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-2.48%
Revenue NY rev (3m)-1.96%
Valuation
Industry RankSector Rank
PE 15.95
Fwd PE 13.28
P/S 1.51
P/FCF N/A
P/OCF N/A
P/B 4.81
P/tB N/A
EV/EBITDA 11.22
EPS(TTM)20.09
EY6.27%
EPS(NY)24.13
Fwd EY7.53%
FCF(TTM)-12.24
FCFYN/A
OCF(TTM)-5.13
OCFYN/A
SpS211.87
BVpS66.65
TBVpS-7.87
PEG (NY)0.79
PEG (5Y)0.63
Graham Number173.57 (-45.85%)
Profitability
Industry RankSector Rank
ROA 4.67%
ROE 16.15%
ROCE 14.05%
ROIC 10.62%
ROICexc 13.16%
ROICexgc 37.64%
OM 12.12%
PM (TTM) 5.08%
GM 98.95%
FCFM N/A
ROA(3y)7.63%
ROA(5y)7.51%
ROE(3y)34.52%
ROE(5y)34.02%
ROIC(3y)13.64%
ROIC(5y)13.73%
ROICexc(3y)19.01%
ROICexc(5y)21.85%
ROICexgc(3y)64.55%
ROICexgc(5y)389.94%
ROCE(3y)18.05%
ROCE(5y)18.18%
ROICexgc growth 3Y-71.68%
ROICexgc growth 5Y-33.99%
ROICexc growth 3Y-27.27%
ROICexc growth 5Y-9.13%
OM growth 3Y-6.5%
OM growth 5Y-0.58%
PM growth 3Y-19.76%
PM growth 5Y-8.79%
GM growth 3Y-0.02%
GM growth 5Y0.03%
F-Score3
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 1.36
Debt/FCF N/A
Debt/EBITDA 2.7
Cap/Depr 90.53%
Cap/Sales 3.36%
Interest Coverage 5.42
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.3
Quick Ratio 2.3
Altman-Z 3.23
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)110.39%
Cap/Depr(5y)106.29%
Cap/Sales(3y)3.97%
Cap/Sales(5y)3.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.76%
EPS 3Y20.33%
EPS 5Y25.51%
EPS Q2Q%23.06%
EPS Next Y20.11%
EPS Next 2Y20.78%
EPS Next 3Y19.44%
EPS Next 5Y15.88%
Revenue 1Y (TTM)37.18%
Revenue growth 3Y25.47%
Revenue growth 5Y23.68%
Sales Q2Q%41.84%
Revenue Next Year21.99%
Revenue Next 2Y17.68%
Revenue Next 3Y10.51%
Revenue Next 5Y12.22%
EBIT growth 1Y18.89%
EBIT growth 3Y17.31%
EBIT growth 5Y22.96%
EBIT Next Year99.83%
EBIT Next 3Y36.14%
EBIT Next 5Y24.06%
FCF growth 1Y-244.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-248.21%
OCF growth 3YN/A
OCF growth 5YN/A

LPL FINANCIAL HOLDINGS INC / LPLA Fundamental Analysis FAQ

What is the fundamental rating for LPLA stock?

ChartMill assigns a fundamental rating of 6 / 10 to LPLA.


What is the valuation status for LPLA stock?

ChartMill assigns a valuation rating of 5 / 10 to LPL FINANCIAL HOLDINGS INC (LPLA). This can be considered as Fairly Valued.


How profitable is LPL FINANCIAL HOLDINGS INC (LPLA) stock?

LPL FINANCIAL HOLDINGS INC (LPLA) has a profitability rating of 6 / 10.


How financially healthy is LPL FINANCIAL HOLDINGS INC?

The financial health rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10.


What is the expected EPS growth for LPL FINANCIAL HOLDINGS INC (LPLA) stock?

The Earnings per Share (EPS) of LPL FINANCIAL HOLDINGS INC (LPLA) is expected to grow by 20.11% in the next year.