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
|Historical stock prices|
|Current Share Price||US$160.03|
|52 Week High||US$181.92|
|52 Week Low||US$103.88|
|1 Month Change||-0.50%|
|3 Month Change||-8.50%|
|1 Year Change||39.24%|
|3 Year Change||127.87%|
|5 Year Change||308.14%|
|Change since IPO||397.76%|
Recent News & Updates
|LPLA||US Capital Markets||US Market|
Return vs Industry: LPLA exceeded the US Capital Markets industry which returned 25.3% over the past year.
Return vs Market: LPLA exceeded the US Market which returned 6.6% over the past year.
|LPLA Average Weekly Movement||4.9%|
|Capital Markets Industry Average Movement||0.7%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.7%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: LPLA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: LPLA's weekly volatility (5%) has been stable over the past year.
About the Company
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 business development companies. 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
|LPLA fundamental statistics|
Is LPLA overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|LPLA income statement (TTM)|
|Cost of Revenue||US$5.55b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 03, 2022
|Earnings per share (EPS)||5.78|
|Net Profit Margin||6.43%|
How did LPLA perform over the long term?See historical performance and comparison
0.6%Current Dividend Yield
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 ($160.03) is trading below our estimate of fair value ($235.23)
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 (27.7x) compared to the US Capital Markets industry average (14.9x).
PE vs Market: LPLA is poor value based on its PE Ratio (27.7x) compared to the US market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: LPLA is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: LPLA is good value based on its PB Ratio (7.9x) compared to the US Capital Markets industry average (35.6x).
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 (29.5% per year) is above the savings rate (2%).
Earnings vs Market: LPLA's earnings (29.5% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: LPLA's revenue (15.1% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: LPLA's revenue (15.1% 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 (40.4%).
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 (6.4%) are lower than last year (8.5%).
Past Earnings Growth Analysis
Earnings Trend: LPLA's earnings have grown by 19.1% 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 (-5%) over the past year, making it difficult to compare to the Capital Markets industry average (84.5%).
Return on Equity
High ROE: Whilst LPLA's Return on Equity (28.66%) 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 ($4.0B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: LPLA's short term assets ($4.0B) do not cover its long term liabilities ($4.6B).
Debt to Equity History and Analysis
Debt Level: LPLA's net debt to equity ratio (107%) is considered high.
Reducing Debt: LPLA's debt to equity ratio has reduced from 275.3% to 168.6% over the past 5 years.
Debt Coverage: LPLA's debt is not well covered by operating cash flow (19.3%).
Interest Coverage: LPLA's interest payments on its debt are well covered by EBIT (7.4x coverage).
What is LPL Financial Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: LPLA's dividend (0.62%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.36%).
High Dividend: LPLA's dividend (0.62%) is low compared to the top 25% of dividend payers in the US market (3.55%).
Stability and Growth of Payments
Stable Dividend: LPLA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: LPLA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: LPLA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of LPLA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Dan Arnold (57 yo)
Mr. Dan Hogan Arnold, Jr., B.S., C.P.A. & M.B.A. has been Chief Executive Officer of LPL Financial Holdings Inc and LPL Financial LLC since January 3, 2017 and its President since March 13, 2015. In this r...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD7.26M) is below average for companies of similar size in the US market ($USD11.42M).
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 (4 years average tenure).
Experienced Board: LPLA's board of directors are considered experienced (5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
LPL Financial Holdings Inc.'s 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
- Implied Market Cap: US$12.826b
- Shares outstanding: 80.15m
- Website: https://www.lpl.com
Number of Employees
- LPL Financial Holdings Inc.
- 4707 Executive Drive
- San Diego
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/21 23:49|
|End of Day Share Price||2022/01/21 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.