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LPLA

LPL Financial Holdings NasdaqGS:LPLA Stock Report

Last Price

US$191.44

Market Cap

US$15.4b

7D

-0.1%

1Y

41.2%

Updated

28 Jun, 2022

Data

Company Financials +
LPLA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance2/6
Financial Health3/6
Dividends0/6

LPLA Stock Overview

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.

LPL Financial Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LPL Financial Holdings
Historical stock prices
Current Share PriceUS$191.44
52 Week HighUS$220.80
52 Week LowUS$127.03
Beta0.95
1 Month Change-4.65%
3 Month Change3.09%
1 Year Change41.24%
3 Year Change134.98%
5 Year Change346.14%
Change since IPO495.46%

Recent News & Updates

May 15

LPL Financial: Compounding Through The Cycles

LPL Financial recently posted a solid quarter overall, helped by re-accelerating momentum in its net new assets. The deal pipeline remains robust and should support growth for many years to come. LPL is also poised to benefit from rate hikes in the coming months. The current valuation seems undemanding relative to LPL's potential earnings power.

Shareholder Returns

LPLAUS Capital MarketsUS Market
7D-0.1%6.3%6.3%
1Y41.2%-18.3%-18.8%

Return vs Industry: LPLA exceeded the US Capital Markets industry which returned -18% over the past year.

Return vs Market: LPLA exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is LPLA's price volatile compared to industry and market?
LPLA volatility
LPLA Average Weekly Movement6.6%
Capital Markets Industry Average Movement0.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

Stable Share Price: LPLA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LPLA's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19896,051Dan Arnoldhttps://www.lpl.com

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 education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and auction rate notes. The company also provides 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.

LPL Financial Holdings Fundamentals Summary

How do LPL Financial Holdings's earnings and revenue compare to its market cap?
LPLA fundamental statistics
Market CapUS$15.37b
Earnings (TTM)US$463.99m
Revenue (TTM)US$8.08b

33.0x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LPLA income statement (TTM)
RevenueUS$8.08b
Cost of RevenueUS$6.27b
Gross ProfitUS$1.81b
Other ExpensesUS$1.35b
EarningsUS$463.99m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.80
Gross Margin22.39%
Net Profit Margin5.74%
Debt/Equity Ratio156.9%

How did LPLA perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

17%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LPLA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LPLA?

Other financial metrics that can be useful for relative valuation.

LPLA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.1x
Enterprise Value/EBITDA16.8x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does LPLA's PE Ratio compare to its peers?

LPLA PE Ratio vs Peers
The above table shows the PE ratio for LPLA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.4x
RJF Raymond James Financial
13.3x9.2%US$20.1b
IBKR Interactive Brokers Group
20.8x26.1%US$24.4b
XP XP
15.6x15.8%US$11.1b
SF Stifel Financial
8x2.4%US$6.3b
LPLA LPL Financial Holdings
33.1x41.0%US$15.4b

Price-To-Earnings vs Peers: LPLA is expensive based on its Price-To-Earnings Ratio (33.1x) compared to the peer average (14.4x).


Price to Earnings Ratio vs Industry

How does LPLA's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: LPLA is expensive based on its Price-To-Earnings Ratio (33.1x) compared to the US Capital Markets industry average (29.6x)


Price to Earnings Ratio vs Fair Ratio

What is LPLA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LPLA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33x
Fair PE Ratio17.2x

Price-To-Earnings vs Fair Ratio: LPLA is expensive based on its Price-To-Earnings Ratio (33.1x) compared to the estimated Fair Price-To-Earnings Ratio (24.5x).


Share Price vs Fair Value

What is the Fair Price of LPLA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LPLA ($192.2) is trading below our estimate of fair value ($280.5)

Significantly Below Fair Value: LPLA is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: LPLA is good value based on its PEG Ratio (0.8x)


Discover undervalued companies

Future Growth

How is LPL Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LPLA's forecast earnings growth (41% per year) is above the savings rate (1.9%).

Earnings vs Market: LPLA's earnings (41% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: LPLA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LPLA's revenue (12.6% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: LPLA's revenue (12.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LPLA's Return on Equity is forecast to be very high in 3 years time (54.8%).


Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LPLA has high quality earnings.

Growing Profit Margin: LPLA's current net profit margins (5.7%) are lower than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: LPLA's earnings have grown by 13.7% per year over the past 5 years.

Accelerating Growth: LPLA's earnings growth over the past year (3.9%) is below its 5-year average (13.7% per year).

Earnings vs Industry: LPLA earnings growth over the past year (3.9%) underperformed the Capital Markets industry 80.5%.


Return on Equity

High ROE: Whilst LPLA's Return on Equity (26.74%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is LPL Financial Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LPLA's short term assets ($4.3B) exceed its short term liabilities ($691.5M).

Long Term Liabilities: LPLA's short term assets ($4.3B) do not cover its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: LPLA's net debt to equity ratio (97.6%) is considered high.

Reducing Debt: LPLA's debt to equity ratio has reduced from 250.7% to 156.9% over the past 5 years.

Debt Coverage: LPLA's debt is not well covered by operating cash flow (11.7%).

Interest Coverage: LPLA's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.52%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LPLA's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: LPLA's dividend (0.52%) is low compared to the top 25% of dividend payers in the US market (4.23%).


Stability and Growth of Payments

Stable Dividend: LPLA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: LPLA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: LPLA is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: LPLA is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Dan Arnold (57 yo)

7.25yrs

Tenure

US$12,875,868

Compensation

Mr. Dan Hogan Arnold, Jr., B.S., C.P.A. & M.B.A. has been Chief Executive Officer of LPL Financial Holdings Inc and LPL Financial LLC since January 3, 2017 and its President since March 13, 2015. In this r...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD12.88M) is about average for companies of similar size in the US market ($USD13.43M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: LPLA's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: LPLA's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LPL Financial Holdings Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: LPL Financial Holdings Inc.
  • Ticker: LPLA
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Implied Market Cap: US$15.369b
  • Shares outstanding: 79.96m
  • Website: https://www.lpl.com

Number of Employees


Location

  • LPL Financial Holdings Inc.
  • 4707 Executive Drive
  • San Diego
  • California
  • 92121
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.