company background image
LPLA

LPL Financial HoldingsNasdaqGS:LPLA Stock Report

Last Price

US$160.03

Market Cap

US$12.8b

7D

-9.0%

1Y

39.2%

Updated

21 Jan, 2022

Data

Company Financials +
LPLA fundamental analysis
Snowflake Score
Valuation4/6
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

Morgan Stanley

NYSE:MS

US$175.2b

Charles Schwab

NYSE:SCHW

US$168.6b

Lazard

NYSE:LAZ

US$4.3b

Piper Sandler Companies

NYSE:PIPR

US$2.7b

Price History & Performance

Summary of all time highs, changes and price drops for LPL Financial Holdings
Historical stock prices
Current Share PriceUS$160.03
52 Week HighUS$181.92
52 Week LowUS$103.88
Beta1.11
1 Month Change-0.50%
3 Month Change-8.50%
1 Year Change39.24%
3 Year Change127.87%
5 Year Change308.14%
Change since IPO397.76%

Recent News & Updates

Shareholder Returns

LPLAUS Capital MarketsUS Market
7D-9.0%-4.0%-4.0%
1Y39.2%25.3%6.6%

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.

Price Volatility

Is LPLA's price volatile compared to industry and market?
LPLA volatility
LPLA Average Weekly Movement4.9%
Capital Markets Industry Average Movement0.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19895,457Dan 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 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

How do LPL Financial Holdings's earnings and revenue compare to its market cap?
LPLA fundamental statistics
Market CapUS$12.83b
Earnings (TTM)US$463.33m
Revenue (TTM)US$7.21b

27.7x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LPLA income statement (TTM)
RevenueUS$7.21b
Cost of RevenueUS$5.55b
Gross ProfitUS$1.66b
ExpensesUS$1.20b
EarningsUS$463.33m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)5.78
Gross Margin23.04%
Net Profit Margin6.43%
Debt/Equity Ratio168.6%

How did LPLA perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

17%

Payout Ratio

Valuation

Is LPL Financial Holdings undervalued compared to its fair value and its price relative to the market?

32.0%

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).


Future Growth

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

29.5%

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%).


Past Performance

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

19.1%

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.


Financial Health

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).


Balance Sheet


Dividend

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

0.62%

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.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Dan Arnold (57 yo)

6.83yrs

Tenure

US$7,256,713

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 ($USD7.26M) is below average for companies of similar size in the US market ($USD11.42M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: LPLA's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: LPLA's board of directors are considered experienced (5 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$12.826b
  • Shares outstanding: 80.15m
  • 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 Analysis2022/01/21 23:49
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.