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LPL Financial Holdings

DB:7LI
Snowflake Description

Solid track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
7LI
DB
$7B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. The last earnings update was 21 days ago. More info.


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7LI Share Price and Events
7 Day Returns
-0.8%
DB:7LI
-0.7%
DE Capital Markets
-0%
DE Market
1 Year Returns
20.9%
DB:7LI
-15.2%
DE Capital Markets
-11.5%
DE Market
7LI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LPL Financial Holdings (7LI) -0.8% 14.3% 11.2% 20.9% 201.8% 114.7%
DE Capital Markets -0.7% -4.6% 1.8% -15.2% -19.6% -47.7%
DE Market -0% -3.3% 2.1% -11.5% 8.9% 8.1%
1 Year Return vs Industry and Market
  • 7LI outperformed the Capital Markets industry which returned -15.2% over the past year.
  • 7LI outperformed the Market in Germany which returned -11.5% over the past year.
Price Volatility
7LI
Industry
5yr Volatility vs Market

Value

 Is LPL Financial Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LPL Financial Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LPL Financial Holdings.

DB:7LI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $12.32 * 60.6%
$7.47
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $12.32
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:7LI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.701 (1 + (1- 21%) (37.18%))
0.938
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.938 * 5.96%)
5.82%

Discounted Cash Flow Calculation for DB:7LI using Excess Returns Model Model

The calculations below outline how an intrinsic value for LPL Financial Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:7LI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (60.6% – 5.82%) * $12.32)
$6.76
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $6.76 / (5.82% - 0.23%)
$120.92
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $12.32 + $120.92
$133.25
DB:7LI Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:7LI represents 0.87145x of NasdaqGS:LPLA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87145x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 133.25 x 0.87145
€116.12
Value per share (EUR) From above. €116.12
Current discount Discount to share price of €73.69
= -1 x (€73.69 - €116.12) / €116.12
36.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LPL Financial Holdings is available for.
Intrinsic value
37%
Share price is €73.69 vs Future cash flow value of €116.12
Current Discount Checks
For LPL Financial Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LPL Financial Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LPL Financial Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LPL Financial Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LPL Financial Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:7LI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.78
NasdaqGS:LPLA Share Price ** NasdaqGS (2019-05-22) in USD $84.56
Germany Capital Markets Industry PE Ratio Median Figure of 19 Publicly-Listed Capital Markets Companies 18.8x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.26x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LPL Financial Holdings.

DB:7LI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LPLA Share Price ÷ EPS (both in USD)

= 84.56 ÷ 5.78

14.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LPL Financial Holdings is good value based on earnings compared to the DE Capital Markets industry average.
  • LPL Financial Holdings is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does LPL Financial Holdings's expected growth come at a high price?
Raw Data
DB:7LI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.63x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
4.7%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 8 Publicly-Listed Capital Markets Companies 2.54x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

DB:7LI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.63x ÷ 4.7%

3.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LPL Financial Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on LPL Financial Holdings's assets?
Raw Data
DB:7LI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $12.02
NasdaqGS:LPLA Share Price * NasdaqGS (2019-05-22) in USD $84.56
Germany Capital Markets Industry PB Ratio Median Figure of 30 Publicly-Listed Capital Markets Companies 1.72x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:7LI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LPLA Share Price ÷ Book Value per Share (both in USD)

= 84.56 ÷ 12.02

7.04x

* Primary Listing of LPL Financial Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LPL Financial Holdings is overvalued based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess LPL Financial Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. LPL Financial Holdings has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is LPL Financial Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LPL Financial Holdings expected to grow at an attractive rate?
  • LPL Financial Holdings's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • LPL Financial Holdings's earnings growth is positive but not above the Germany market average.
  • LPL Financial Holdings's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:7LI Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:7LI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 4.7%
DB:7LI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 8.4%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 25%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 4.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:7LI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:7LI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 6,734 607 3
2020-12-31 6,046 572 8
2019-12-31 5,646 559 8
DB:7LI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,319 639 501
2018-12-31 5,188 582 439
2018-09-30 4,988 516 383
2018-06-30 4,721 399 335
2018-03-31 4,488 424 284
2017-12-31 4,281 453 239
2017-09-30 4,172 136 217
2017-06-30 4,126 225 210
2017-03-31 4,080 163 190
2016-12-31 4,049 389 192
2016-09-30 4,062 333 177
2016-06-30 4,100 183 166

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LPL Financial Holdings's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • LPL Financial Holdings's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:7LI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from LPL Financial Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:7LI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 7.91 8.05 7.77 2.00
2020-12-31 7.06 7.33 6.68 7.00
2019-12-31 6.56 6.69 6.46 7.00
DB:7LI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.78
2018-12-31 4.99
2018-09-30 4.30
2018-06-30 3.73
2018-03-31 3.16
2017-12-31 2.65
2017-09-30 2.41
2017-06-30 2.35
2017-03-31 2.12
2016-12-31 2.15
2016-09-30 1.96
2016-06-30 1.81

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LPL Financial Holdings is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess LPL Financial Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LPL Financial Holdings has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has LPL Financial Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LPL Financial Holdings's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LPL Financial Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • LPL Financial Holdings's 1-year earnings growth exceeds its 5-year average (76.4% vs 21.1%)
  • LPL Financial Holdings's earnings growth has exceeded the DE Capital Markets industry average in the past year (76.4% vs 17.6%).
Earnings and Revenue History
LPL Financial Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LPL Financial Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:7LI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,318.52 501.33 444.16
2018-12-31 5,188.40 439.46 456.17
2018-09-30 4,987.80 383.26 463.58
2018-06-30 4,720.91 334.54 438.22
2018-03-31 4,487.61 284.20 425.35
2017-12-31 4,281.48 238.86 385.34
2017-09-30 4,172.50 216.50 357.65
2017-06-30 4,125.83 210.31 358.12
2017-03-31 4,079.51 189.73 356.38
2016-12-31 4,049.38 191.93 353.15
2016-09-30 4,062.27 177.01 351.78
2016-06-30 4,099.58 166.11 346.66
2016-03-31 4,171.06 168.50 337.64
2015-12-31 4,275.05 168.78 334.70
2015-09-30 4,358.98 190.52 285.54
2015-06-30 4,393.47 182.74 317.04
2015-03-31 4,395.53 175.59 321.11
2014-12-31 4,373.66 178.04 313.11
2014-09-30 4,363.32 173.92 326.65
2014-06-30 4,327.30 178.28 290.10
2014-03-31 4,253.49 180.28 278.50
2013-12-31 4,140.86 181.86 268.72
2013-09-30 3,991.17 174.38 288.22
2013-06-30 3,845.19 171.05 276.56
2013-03-31 3,734.11 165.46 278.58
2012-12-31 3,661.09 151.92 246.94
2012-09-30 3,545.50 153.93 245.12
2012-06-30 3,521.13 155.59 235.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst LPL Financial Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • LPL Financial Holdings used its assets more efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • LPL Financial Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess LPL Financial Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LPL Financial Holdings has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is LPL Financial Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LPL Financial Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LPL Financial Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LPL Financial Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of LPL Financial Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LPL Financial Holdings Company Filings, last reported 1 month ago.

DB:7LI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,009.70 2,622.81 705.56
2018-12-31 974.07 2,476.37 540.66
2018-09-30 979.47 2,480.17 801.30
2018-06-30 1,006.70 2,483.99 842.01
2018-03-31 1,008.49 2,487.80 836.07
2017-12-31 965.01 2,492.54 822.52
2017-09-30 940.57 2,496.54 591.06
2017-06-30 893.10 2,283.63 963.24
2017-03-31 870.27 2,287.72 809.69
2016-12-31 821.00 2,281.09 756.11
2016-09-30 791.13 2,284.58 803.20
2016-06-30 753.99 2,273.43 760.50
2016-03-31 723.06 2,259.80 791.72
2015-12-31 715.61 2,248.18 732.22
2015-09-30 945.40 1,709.31 426.65
2015-06-30 943.09 1,720.18 563.40
2015-03-31 979.56 1,641.55 505.08
2014-12-31 971.60 1,625.20 425.80
2014-09-30 1,063.37 1,526.97 472.42
2014-06-30 1,068.59 1,529.68 450.35
2014-03-31 1,056.25 1,532.39 482.69
2013-12-31 1,099.97 1,535.10 525.55
2013-09-30 1,091.66 1,537.81 598.10
2013-06-30 1,186.50 1,540.52 599.34
2013-03-31 1,189.99 1,307.10 443.56
2012-12-31 1,140.02 1,337.14 474.35
2012-09-30 1,193.28 1,328.55 453.13
2012-06-30 1,219.40 1,339.28 497.06
  • LPL Financial Holdings's level of debt (259.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (145.1% vs 259.8% today).
  • Debt is well covered by operating cash flow (24.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).
X
Financial health checks
We assess LPL Financial Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LPL Financial Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is LPL Financial Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.18%
Current annual income from LPL Financial Holdings dividends. Estimated to be 1.26% next year.
If you bought €2,000 of LPL Financial Holdings shares you are expected to receive €24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • LPL Financial Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • LPL Financial Holdings's dividend is below the markets top 25% of dividend payers in Germany (3.86%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:7LI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:7LI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.13 4.00
2020-12-31 1.07 6.00
2019-12-31 1.01 6.00
DB:7LI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-31 1.000 1.325
2018-10-30 1.000 1.586
2018-10-25 1.000 1.772
2018-05-03 1.000 1.512
2018-02-27 1.000 1.630
2018-02-21 1.000 1.551
2018-02-01 1.000 1.596
2017-07-27 1.000 1.947
2017-05-02 1.000 2.388
2017-04-27 1.000 2.410
2017-02-24 1.000 2.543
2017-02-09 1.000 2.477
2016-11-03 1.000 2.659
2016-11-02 1.000 3.221
2016-05-11 1.000 3.719
2016-02-24 1.000 4.220
2016-02-11 1.000 5.009
2015-08-05 1.000 2.540
2015-04-30 1.000 2.234
2015-02-20 1.000 2.289
2015-02-19 1.000 2.208
2014-10-30 0.960 2.229
2014-07-30 0.960 2.092
2014-04-28 0.960 1.979
2014-04-23 0.960 2.026
2014-02-26 0.960 1.851
2014-02-11 0.960 1.783
2013-10-30 0.760 1.647
2013-08-02 0.760 1.970
2013-07-31 0.760 1.950
2013-04-25 0.540 1.455
2013-02-06 0.540 1.656
2012-10-31 0.480 1.669
2012-07-31 0.480 1.674
2012-04-02 0.480 1.422

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, LPL Financial Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but LPL Financial Holdings only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of LPL Financial Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.2x coverage).
X
Income/ dividend checks
We assess LPL Financial Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LPL Financial Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LPL Financial Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of LPL Financial Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Arnold
COMPENSATION $7,128,351
AGE 54
TENURE AS CEO 2.3 years
CEO Bio

Dan Arnold serves as president and chief executive officer of LPL Financial (NASDAQ: LPLA). In this role, He sets the strategy and direction for the firm with the board, while leading the senior executive team in shaping and communicating the values and operating principles of the organization. He has more than 20 years of industry experience. He has served as LPL president since March 2015 and has been responsible for driving the development of the firm’s long-term strategy for growth. In this same role, he also oversaw the company’s primary client-facing functions and led its Advisor and Institution Solutions business unit, which focused on business development, existing advisor and institution growth, enhancing the client experience, the firm’s research capabilities and its sponsor partnerships. He was previously the firm’s chief financial officer, responsible for formulating financial policy and leading the company’s capital management efforts. He joined LPL Financial in 2007 as managing director of Institution Services, with responsibilities for the growth and support of the firm’s bank and credit union clients. He joined LPL through its acquisition of UVEST Financial Services—a leading provider of investment services to banks and credit unions—which he led as president and chief operating officer. Earlier, he spent seven years in the telecommunications industry, holding leadership roles with BellSouth and MCI in corporate finance, sales, and marketing. He earned a BS in electrical engineering from Auburn University and holds an MBA in finance from Georgia State University. He is FINRA Series 7, 24, 27, and 63 registered through LPL Financial.

CEO Compensation
  • Dan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dan's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the LPL Financial Holdings management team in years:

3.3
Average Tenure
54
Average Age
  • The tenure for the LPL Financial Holdings management team is about average.
Management Team

Dan Arnold

TITLE
President
COMPENSATION
$7M
AGE
54
TENURE
2.3 yrs

Matt Audette

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
43
TENURE
3.7 yrs

Burt White

TITLE
MD of Investor & Investment Solutions and Chief Investment Officer
COMPENSATION
$2M
AGE
48
TENURE
12.3 yrs

Scott Seese

TITLE
MD & Chief Information Officer
COMPENSATION
$3M
AGE
47
TENURE
1.8 yrs

Rich Steinmeier

TITLE
MD & Divisional President of Business Development
COMPENSATION
$3M
AGE
44
TENURE
0.8 yrs

Chris Koegel

TITLE
Senior Vice President of Investor Relations
TENURE
4.3 yrs

Michelle Oroschakoff

TITLE
MD & Chief Legal Officer
COMPENSATION
$2M
AGE
56
TENURE
1.9 yrs

Sallie Larsen

TITLE
MD & Chief Human Capital Officer
COMPENSATION
$1M
AGE
64
TENURE
7.3 yrs

Andy Kalbaugh

TITLE
MD and Divisional President of National Sales & Consulting
AGE
54
TENURE
3.3 yrs

Tracy Calder

TITLE
MD & Chief Risk Officer
COMPENSATION
$2M
AGE
58
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the LPL Financial Holdings board of directors in years:

3.4
Average Tenure
64
Average Age
  • The tenure for the LPL Financial Holdings board of directors is about average.
Board of Directors

Jim Putnam

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$389K
AGE
64
TENURE
2.2 yrs

Dan Arnold

TITLE
President
COMPENSATION
$7M
AGE
54
TENURE
2.3 yrs

Rick Schifter

TITLE
Director
COMPENSATION
$279K
AGE
65
TENURE
13.6 yrs

James Riepe

TITLE
Director
COMPENSATION
$306K
AGE
74
TENURE
11.3 yrs

Anne Mulcahy

TITLE
Director
COMPENSATION
$289K
AGE
66
TENURE
6 yrs

H. Eberhart

TITLE
Director
COMPENSATION
$281K
AGE
64
TENURE
4.5 yrs

Bill Glavin

TITLE
Director
COMPENSATION
$284K
AGE
59
TENURE
2 yrs

Allison Mnookin

TITLE
Independent Director
COMPENSATION
$229K
AGE
48
TENURE
0.9 yrs

Corey Thomas

TITLE
Director
AGE
42
Who owns this company?
Recent Insider Trading
  • LPL Financial Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
10. May 19 Sell Tracy Calder Individual 08. May 19 08. May 19 -500 €75.18 €-37,592
27. Feb 19 Sell Tracy Calder Individual 26. Feb 19 26. Feb 19 -10,747 €68.04 €-731,266
X
Management checks
We assess LPL Financial Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LPL Financial Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and 529 education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and business development companies. The company also provides fee-based advisory platforms that provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, it offers cash sweep programs; and retirement solutions for commission- and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, the company provides other services comprising tools and services that enable advisors to maintain and grow their practices; and trust, investment management oversight, and custodial services to trusts for estates and families, as well as insurance brokerage general agency services. The company was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. LPL Financial Holdings Inc. was founded in 1968 and is based in Boston, Massachusetts.

Details
Name: LPL Financial Holdings Inc.
7LI
Exchange: DB
Founded: 1968
$6,325,884,666
83,427,480
Website: http://www.lpl.com
Address: LPL Financial Holdings Inc.
75 State Street,
22nd Floor,
Boston,
Massachusetts, 02109,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LPLA Common Stock Nasdaq Global Select US USD 18. Nov 2010
DB 7LI Common Stock Deutsche Boerse AG DE EUR 18. Nov 2010
Number of employees
Current staff
Staff numbers
4,267
LPL Financial Holdings employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 00:10
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/16
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.