LPL FINANCIAL HOLDINGS INC (LPLA) Fundamental Analysis & Valuation

NASDAQ:LPLA • US50212V1008

Current stock price

300.18 USD
+3.28 (+1.1%)
At close:
300.18 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.
  • In the past year LPLA has reported a negative cash flow from operations.
  • LPLA had positive earnings in each of the past 5 years.
  • LPLA had a positive operating cash flow in 4 of the past 5 years.
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

  • The Return On Assets of LPLA (4.67%) is better than 66.67% of its industry peers.
  • With a decent Return On Equity value of 16.15%, LPLA is doing good in the industry, outperforming 75.83% of the companies in the same industry.
  • The Return On Invested Capital of LPLA (10.62%) is better than 85.83% 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 7.25%.
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

  • Looking at the Profit Margin, with a value of 5.08%, LPLA is doing worse than 64.58% of the companies in the same industry.
  • In the last couple of years the Profit Margin of LPLA has declined.
  • LPLA's Operating Margin of 12.12% is on the low side compared to the rest of the industry. LPLA is outperformed by 64.17% 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's Gross Margin of 98.95% is amongst the best of the industry. LPLA outperforms 98.75% of its industry peers.
  • In the last couple of years the Gross Margin of LPLA has remained more or less at the same level.
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

  • Compared to 1 year ago, LPLA has more shares outstanding
  • LPLA has more shares outstanding than it did 5 years ago.
  • LPLA has a better debt/assets ratio than last year.
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

  • An Altman-Z score of 3.14 indicates that LPLA is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.14, LPLA is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
  • LPLA has a Debt/Equity ratio of 1.36. This is a high value indicating a heavy dependency on external 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 3.14
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's Current ratio of 2.30 is fine compared to the rest of the industry. LPLA outperforms 78.75% 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.
  • The Quick ratio of LPLA (2.30) is better than 78.75% 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

  • LPLA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.76%, which is quite impressive.
  • The Earnings Per Share has been growing by 25.51% on average over the past years. This is a very strong growth
  • Looking at the last year, LPLA shows a very strong growth in Revenue. The Revenue has grown by 37.18%.
  • LPLA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.68% yearly.
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

  • The Earnings Per Share is expected to grow by 15.88% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 12.22% on average over the next years. This is quite good.
EPS Next Y21.46%
EPS Next 2Y21.06%
EPS Next 3Y19.61%
EPS Next 5Y15.88%
Revenue Next Year25.08%
Revenue Next 2Y19.08%
Revenue Next 3Y10.21%
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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in 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

  • Based on the Price/Earnings ratio of 14.94, the valuation of LPLA can be described as correct.
  • LPLA's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 24.75, LPLA is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 12.30, which indicates a correct valuation of LPLA.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of LPLA is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 22.10. LPLA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.94
Fwd PE 12.3
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

  • LPLA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. LPLA is cheaper than 84.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.49
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.
  • LPLA has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as LPLA's earnings are expected to grow with 19.61% in the coming years.
PEG (NY)0.7
PEG (5Y)0.59
EPS Next 2Y21.06%
EPS Next 3Y19.61%

More info and screens

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

5

5. LPLA Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.40%, LPLA is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 6.85, LPLA is paying slightly less dividend.
  • Compared to an average S&P500 Dividend Yield of 1.89, LPLA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.4%

5.2 History

  • The dividend of LPLA has a limited annual growth rate of 4.26%.
  • LPLA has paid a dividend for at least 10 years, which is 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 Years11
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

  • LPLA pays out 10.94% of its income as dividend. This is a sustainable payout ratio.
  • LPLA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP10.94%
EPS Next 2Y21.06%
EPS Next 3Y19.61%
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 (3/30/2026, 8:14:03 PM)

After market: 300.18 0 (0%)

300.18

+3.28 (+1.1%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-29
Earnings (Next)04-23
Inst Owners103.52%
Inst Owner Change1.06%
Ins Owners0.41%
Ins Owner Change1.46%
Market Cap24.04B
Revenue(TTM)16.99B
Net Income(TTM)863.02M
Analysts80.95
Price Target453.99 (51.24%)
Short Float %3.75%
Short Ratio3.04
Dividend
Industry RankSector Rank
Dividend Yield 0.4%
Yearly Dividend1.22
Dividend Growth(5Y)4.26%
DP10.94%
Div Incr Years0
Div Non Decr Years11
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)-0.81%
PT rev (3m)0.49%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)1.1%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.58%
Valuation
Industry RankSector Rank
PE 14.94
Fwd PE 12.3
P/S 1.41
P/FCF N/A
P/OCF N/A
P/B 4.5
P/tB N/A
EV/EBITDA 10.49
EPS(TTM)20.09
EY6.69%
EPS(NY)24.4
Fwd EY8.13%
FCF(TTM)-12.26
FCFYN/A
OCF(TTM)-5.14
OCFYN/A
SpS212.16
BVpS66.74
TBVpS-7.88
PEG (NY)0.7
PEG (5Y)0.59
Graham Number173.69
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 3.14
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 Y21.46%
EPS Next 2Y21.06%
EPS Next 3Y19.61%
EPS Next 5Y15.88%
Revenue 1Y (TTM)37.18%
Revenue growth 3Y25.47%
Revenue growth 5Y23.68%
Sales Q2Q%41.84%
Revenue Next Year25.08%
Revenue Next 2Y19.08%
Revenue Next 3Y10.21%
Revenue Next 5Y12.22%
EBIT growth 1Y18.89%
EBIT growth 3Y17.31%
EBIT growth 5Y22.96%
EBIT Next Year100.69%
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 of LPL FINANCIAL HOLDINGS INC (LPLA) stock?

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


What is the profitability of LPLA stock?

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


What are the PE and PB ratios of LPL FINANCIAL HOLDINGS INC (LPLA) stock?

The Price/Earnings (PE) ratio for LPL FINANCIAL HOLDINGS INC (LPLA) is 14.94 and the Price/Book (PB) ratio is 4.5.


How financially healthy is LPL FINANCIAL HOLDINGS INC?

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