LPL FINANCIAL HOLDINGS INC (LPLA) Stock Fundamental Analysis
USA - NASDAQ:LPLA - US50212V1008 - Common Stock
377.31 USD
+38.82 (+11.47%)
377.31 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to LPLA. LPLA was compared to 235 industry peers in the Capital Markets industry. LPLA scores excellent on profitability, but there are some minor concerns on its financial health. LPLA is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make LPLA suitable for growth investing!
1. Profitability
1.1 Basic Checks
LPLA had positive earnings in the past year.
LPLA had a positive operating cash flow in the past year.
Each year in the past 5 years LPLA has been profitable.
In the past 5 years LPLA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.40%, LPLA is doing good in the industry, outperforming 77.45% of the companies in the same industry.
The Return On Equity of LPLA (22.03%) is better than 88.09% of its industry peers.
The Return On Invested Capital of LPLA (10.46%) is better than 84.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for LPLA is significantly above the industry average of 7.61%.
The last Return On Invested Capital (10.46%) for LPLA is well below the 3 year average (15.44%), which needs to be investigated, but indicates that LPLA had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 22.03% | ||
| ROIC | 10.46% |
ROA(3y)9.04%
ROA(5y)8.01%
ROE(3y)42.14%
ROE(5y)37.98%
ROIC(3y)15.44%
ROIC(5y)14.04%
1.3 Margins
LPLA's Profit Margin of 7.91% is on the low side compared to the rest of the industry. LPLA is outperformed by 62.13% of its industry peers.
LPLA's Profit Margin has declined in the last couple of years.
LPLA's Operating Margin of 13.92% is on the low side compared to the rest of the industry. LPLA is outperformed by 64.26% of its industry peers.
LPLA's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 98.92%, LPLA belongs to the best of the industry, outperforming 99.15% of the companies in the same industry.
In the last couple of years the Gross Margin of LPLA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.92% | ||
| PM (TTM) | 7.91% | ||
| GM | 98.93% |
OM growth 3Y10.2%
OM growth 5Y-2.12%
PM growth 3Y12.79%
PM growth 5Y-3%
GM growth 3Y0.03%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
LPLA has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LPLA has less shares outstanding
LPLA has a worse debt/assets ratio than last year.
2.2 Solvency
LPLA has an Altman-Z score of 3.57. This indicates that LPLA is financially healthy and has little risk of bankruptcy at the moment.
LPLA has a better Altman-Z score (3.57) than 78.72% of its industry peers.
LPLA has a Debt/Equity ratio of 1.44. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.44, LPLA is not doing good in the industry: 69.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.57 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.05 indicates that LPLA has no problem at all paying its short term obligations.
The Current ratio of LPLA (3.05) is better than 80.85% of its industry peers.
A Quick Ratio of 3.05 indicates that LPLA has no problem at all paying its short term obligations.
The Quick ratio of LPLA (3.05) is better than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.05 | ||
| Quick Ratio | 3.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.26% over the past year.
The Earnings Per Share has been growing by 18.07% on average over the past years. This is quite good.
Looking at the last year, LPLA shows a very strong growth in Revenue. The Revenue has grown by 23.20%.
Measured over the past years, LPLA shows a quite strong growth in Revenue. The Revenue has been growing by 17.10% on average per year.
EPS 1Y (TTM)21.26%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%25%
Revenue 1Y (TTM)23.2%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%46%
3.2 Future
LPLA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.60% yearly.
LPLA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.09% yearly.
EPS Next Y16.55%
EPS Next 2Y18.27%
EPS Next 3Y20.3%
EPS Next 5Y10.6%
Revenue Next Year35.61%
Revenue Next 2Y28.94%
Revenue Next 3Y23.76%
Revenue Next 5Y17.09%
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 Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.74, LPLA is valued on the expensive side.
LPLA's Price/Earnings ratio is in line with the industry average.
LPLA is valuated rather cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.35, which indicates a correct valuation of LPLA.
LPLA's Price/Forward Earnings is on the same level as the industry average.
LPLA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 16.35 |
4.2 Price Multiples
82.98% of the companies in the same industry are more expensive than LPLA, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.72 |
4.3 Compensation for Growth
LPLA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 20.30% in the coming years.
PEG (NY)1.19
PEG (5Y)1.09
EPS Next 2Y18.27%
EPS Next 3Y20.3%
5. Dividend
5.1 Amount
LPLA has a yearly dividend return of 0.35%, which is pretty low.
LPLA's Dividend Yield is slightly below the industry average, which is at 8.36.
With a Dividend Yield of 0.35, LPLA pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
5.2 History
The dividend of LPLA has a limited annual growth rate of 3.76%.
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)3.76%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
LPLA pays out 8.17% 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.
DP8.17%
EPS Next 2Y18.27%
EPS Next 3Y20.3%
377.31
+38.82 (+11.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change0.44%
Ins Owners0.39%
Ins Owner Change0.11%
Market Cap30.18B
Revenue(TTM)12.39B
Net Income(TTM)1.12B
Analysts80
Price Target423.23 (12.17%)
Short Float %2.71%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend1.2
Dividend Growth(5Y)3.76%
DP8.17%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.36%
Min EPS beat(2)4.59%
Max EPS beat(2)8.12%
EPS beat(4)4
Avg EPS beat(4)7.08%
Min EPS beat(4)4.59%
Max EPS beat(4)9.9%
EPS beat(8)8
Avg EPS beat(8)5.48%
EPS beat(12)11
Avg EPS beat(12)4.74%
EPS beat(16)15
Avg EPS beat(16)5.1%
Revenue beat(2)1
Avg Revenue beat(2)0.2%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-0.88%
Max Revenue beat(4)2.92%
Revenue beat(8)4
Avg Revenue beat(8)0.5%
Revenue beat(12)5
Avg Revenue beat(12)0.05%
Revenue beat(16)9
Avg Revenue beat(16)2.18%
PT rev (1m)-6.04%
PT rev (3m)-5.21%
EPS NQ rev (1m)-2.33%
EPS NQ rev (3m)-4.78%
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.52%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)9.73%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)5.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 16.35 | ||
| P/S | 2.14 | ||
| P/FCF | N/A | ||
| P/OCF | 53.55 | ||
| P/B | 5.95 | ||
| P/tB | 24.74 | ||
| EV/EBITDA | 12.72 |
EPS(TTM)19.11
EY5.06%
EPS(NY)23.08
Fwd EY6.12%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)7.05
OCFY1.87%
SpS176.57
BVpS63.43
TBVpS15.25
PEG (NY)1.19
PEG (5Y)1.09
Graham Number165.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.4% | ||
| ROE | 22.03% | ||
| ROCE | 13.96% | ||
| ROIC | 10.46% | ||
| ROICexc | 17.77% | ||
| ROICexgc | 49.87% | ||
| OM | 13.92% | ||
| PM (TTM) | 7.91% | ||
| GM | 98.93% | ||
| FCFM | N/A |
ROA(3y)9.04%
ROA(5y)8.01%
ROE(3y)42.14%
ROE(5y)37.98%
ROIC(3y)15.44%
ROIC(5y)14.04%
ROICexc(3y)25.8%
ROICexc(5y)23.26%
ROICexgc(3y)599.08%
ROICexgc(5y)438.7%
ROCE(3y)20.61%
ROCE(5y)18.75%
ROICexgc growth 3Y-20.71%
ROICexgc growth 5Y-23.61%
ROICexc growth 3Y-1.8%
ROICexc growth 5Y-7.03%
OM growth 3Y10.2%
OM growth 5Y-2.12%
PM growth 3Y12.79%
PM growth 5Y-3%
GM growth 3Y0.03%
GM growth 5Y0.02%
F-Score3
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.93 | ||
| Cap/Depr | 108.67% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 6.36 | ||
| Cash Conversion | 22.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.05 | ||
| Quick Ratio | 3.05 | ||
| Altman-Z | 3.57 |
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)115.77%
Cap/Depr(5y)105.75%
Cap/Sales(3y)4.04%
Cap/Sales(5y)3.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.26%
EPS 3Y32.96%
EPS 5Y18.07%
EPS Q2Q%25%
EPS Next Y16.55%
EPS Next 2Y18.27%
EPS Next 3Y20.3%
EPS Next 5Y10.6%
Revenue 1Y (TTM)23.2%
Revenue growth 3Y17.06%
Revenue growth 5Y17.1%
Sales Q2Q%46%
Revenue Next Year35.61%
Revenue Next 2Y28.94%
Revenue Next 3Y23.76%
Revenue Next 5Y17.09%
EBIT growth 1Y24.53%
EBIT growth 3Y29%
EBIT growth 5Y14.62%
EBIT Next Year35.15%
EBIT Next 3Y26.74%
EBIT Next 5Y18.45%
FCF growth 1Y-100.3%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-73.72%
OCF growth 3Y-15.07%
OCF growth 5Y-14.95%
LPL FINANCIAL HOLDINGS INC / LPLA FAQ
What is the fundamental rating for LPLA stock?
ChartMill assigns a fundamental rating of 6 / 10 to LPLA.
Can you provide the valuation status for LPL FINANCIAL HOLDINGS INC?
ChartMill assigns a valuation rating of 4 / 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 7 / 10.
What is the earnings growth outlook for LPL FINANCIAL HOLDINGS INC?
The Earnings per Share (EPS) of LPL FINANCIAL HOLDINGS INC (LPLA) is expected to grow by 16.55% in the next year.
Can you provide the dividend sustainability for LPLA stock?
The dividend rating of LPL FINANCIAL HOLDINGS INC (LPLA) is 5 / 10 and the dividend payout ratio is 8.17%.