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. More Details
Adequate balance sheet and fair value.
Share Price & News
How has LPL Financial Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LPLA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: LPLA's weekly volatility (4%) has been stable over the past year.
7 Day Return
US Capital Markets
1 Year Return
US Capital Markets
Return vs Industry: LPLA exceeded the US Capital Markets industry which returned 68.7% over the past year.
Return vs Market: LPLA exceeded the US Market which returned 48.6% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is LPL Financial Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StHere's Why LPL Financial Holdings Inc.'s (NASDAQ:LPLA) CEO May Deserve A Raise
1 month ago | Simply Wall StDid You Participate In Any Of LPL Financial Holdings' (NASDAQ:LPLA) Incredible 541% Return?
2 months ago | Simply Wall StIs It Smart To Buy LPL Financial Holdings Inc. (NASDAQ:LPLA) Before It Goes Ex-Dividend?
Is LPL Financial Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LPLA ($143.22) is trading below our estimate of fair value ($183.77)
Significantly Below Fair Value: LPLA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LPLA is poor value based on its PE Ratio (25.4x) compared to the US Capital Markets industry average (17.1x).
PE vs Market: LPLA is poor value based on its PE Ratio (25.4x) compared to the US market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: LPLA is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: LPLA is good value based on its PB Ratio (8x) compared to the US Capital Markets industry average (68.1x).
How is LPL Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LPLA's forecast earnings growth (12% per year) is above the savings rate (2%).
Earnings vs Market: LPLA's earnings (12% per year) are forecast to grow slower than the US market (15.4% per year).
High Growth Earnings: LPLA's earnings are forecast to grow, but not significantly.
Revenue vs Market: LPLA's revenue (7.9% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: LPLA's revenue (7.9% 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 (41.9%).
How has LPL Financial Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LPLA has high quality earnings.
Growing Profit Margin: LPLA's current net profit margins (7.3%) are lower than last year (9.8%).
Past Earnings Growth Analysis
Earnings Trend: LPLA's earnings have grown significantly by 24.3% per year over the past 5 years.
Accelerating Growth: LPLA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LPLA had negative earnings growth (-20.3%) over the past year, making it difficult to compare to the Capital Markets industry average (33%).
Return on Equity
High ROE: Whilst LPLA's Return on Equity (31.14%) is high, this metric is skewed due to their high level of debt.
How is LPL Financial Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: LPLA's short term assets ($3.4B) exceed its short term liabilities ($1.2B).
Long Term Liabilities: LPLA's short term assets ($3.4B) do not cover its long term liabilities ($4.0B).
Debt to Equity History and Analysis
Debt Level: LPLA's debt to equity ratio (162.6%) is considered high.
Reducing Debt: LPLA's debt to equity ratio has reduced from 302% to 162.6% over the past 5 years.
Debt Coverage: LPLA's debt is well covered by operating cash flow (20.1%).
Interest Coverage: LPLA's interest payments on its debt are well covered by EBIT (7x coverage).
What is LPL Financial Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: LPLA's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.25%).
High Dividend: LPLA's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (3.43%).
Stability and Growth of Payments
Stable Dividend: LPLA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: LPLA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: LPLA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LPLA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Arnold (56 yo)
Mr. Dan Hogan Arnold, Jr., B.S., C.P.A. & M.B.A. has been Chief Executive Officer of LPL Financial Holdings Inc and LPL Financial LLC since January 3, 2017 and its President since March 13, 2015. In this r...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD7.26M) is below average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Experienced Management: LPLA's management team is considered experienced (3.3 years average tenure).
Experienced Board: LPLA's board of directors are considered experienced (4.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LPLA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
LPL Financial Holdings Inc.'s company bio, employee growth, exchange listings and data sources
- Name: LPL Financial Holdings Inc.
- Ticker: LPLA
- Exchange: NasdaqGS
- Founded: 1989
- Industry: Investment Banking and Brokerage
- Sector: Diversified Financials
- Market Cap: US$11.449b
- Shares outstanding: 79.94m
- Website: https://www.lpl.com
Number of Employees
- LPL Financial Holdings Inc.
- 4707 Executive Drive
- San Diego
- United States
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 financ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/12 23:09|
|End of Day Share Price||2021/05/12 00:00|
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.