LPL Financial Holdings
Market Cap
US$7.3b
Last Updated
2019/12/08 00:09 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
No risks detected for LPLA from our risk checks.
Snowflake Analysis
Solid track record and good value.
Similar Companies
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.1%
LPLA
0.8%
US Capital Markets
0.03%
US Market
1 Year Return
53.4%
LPLA
20.1%
US Capital Markets
18.6%
US Market
Return vs Industry: LPLA exceeded the US Capital Markets industry which returned 20.1% over the past year.
Return vs Market: LPLA exceeded the US Market which returned 18.6% over the past year.
Shareholder returns
| LPLA | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.1% | 0.8% | 0.03% |
| 30 Day | 6.1% | 4.8% | 1.7% |
| 90 Day | 15.9% | 7.7% | 5.7% |
| 1 Year | 55.3%53.4% | 22.4%20.1% | 21.1%18.6% |
| 3 Year | 170.6%157.3% | 39.5%31.6% | 45.6%36.2% |
| 5 Year | 147.0%120.7% | 84.0%66.9% | 71.1%52.3% |
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
1 week ago | Simply Wall St
Why Dividend Hunters Love LPL Financial Holdings Inc. (NASDAQ:LPLA)3 weeks ago | Simply Wall St
Should You Worry About LPL Financial Holdings Inc.'s (NASDAQ:LPLA) CEO Pay Cheque?1 month ago | Simply Wall St
Why I Like LPL Financial Holdings Inc. (NASDAQ:LPLA)Valuation
Is LPL Financial Holdings undervalued compared to its fair value and its price relative to the market?
32.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LPLA ($92.26) is trading below our estimate of fair value ($137.02)
Significantly Below Fair Value: LPLA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LPLA is good value based on its PE Ratio (14x) compared to the Capital Markets industry average (33.2x).
PE vs Market: LPLA is good value based on its PE Ratio (14x) compared to the US market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: LPLA is poor value based on its PEG Ratio (33.5x)
Price to Book Ratio
PB vs Industry: LPLA is overvalued based on its PB Ratio (7.4x) compared to the US Capital Markets industry average (6.3x).
Next Steps
Future Growth
How is LPL Financial Holdings forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
0.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LPLA's forecast earnings growth (0.4% per year) is below the savings rate (1.7%).
Earnings vs Market: LPLA's earnings (0.4% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: LPLA's earnings are forecast to grow, but not significantly.
Revenue vs Market: LPLA's revenue (7% per year) is forecast to grow slower than the US market (7.4% per year).
High Growth Revenue: LPLA's revenue (7% 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 (61.4%).
Next Steps
Past Performance
How has LPL Financial Holdings performed over the past 5 years?
27.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LPLA has high quality earnings.
Growing Profit Margin: LPLA's current net profit margins (10.1%) are higher than last year (7.7%).
Past Earnings Growth Analysis
Earnings Trend: LPLA's earnings have grown significantly by 27.2% per year over the past 5 years.
Accelerating Growth: LPLA's earnings growth over the past year (44.4%) exceeds its 5-year average (27.2% per year).
Earnings vs Industry: LPLA earnings growth over the past year (44.4%) exceeded the Capital Markets industry 20.6%.
Return on Equity
High ROE: Whilst LPLA's Return on Equity (54.27%) is outstanding, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is LPL Financial Holdings's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: LPLA has a low level of unsold assets or inventory.
Debt Coverage by Assets: LPLA's debt is covered by short term assets (assets are 1.2x debt).
Financial Institutions Analysis
Asset Level: LPLA's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if LPLA has a sufficient allowance for bad loans.
Low Risk Liabilities: LPLA reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if LPLA has an acceptable proportion of non-loan assets held.
Low Risk Deposits: LPLA has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if LPLA has an appropriate level of bad loans.
Next Steps
Dividend
What is LPL Financial Holdings's current dividend yield, its reliability and sustainability?
1.08%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LPLA's dividend (1.08%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: LPLA's dividend (1.08%) is low compared to the top 25% of dividend payers in the US market (3.7%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, LPLA has been paying a dividend for less than 10 years.
Growing Dividend: LPLA's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (15.2%), LPLA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LPLA's dividends in 3 years are forecast to be thoroughly covered by earnings (13.7% payout ratio).
Next Steps
Management
What is the CEO of LPL Financial Holdings's salary, the management and board of directors tenure and is there insider trading?
3.9yrs
Average management tenure
CEO
Dan Arnold (55yo)
2.9yrs
Tenure
US$7,128,351
Compensation
Mr. Dan Hogan Arnold serves as President and Chief Executive Officer of LPL Financial Holdings Inc. (“LPL”) (NASDAQ: LPLA). In this role, He sets the strategy and direction for the LPL with the board, whil ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD7.13M) is about average for companies of similar size in the US market ($USD6.81M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.9yrs
Average Tenure
55yo
Average Age
Experienced Management: LPLA's management team is considered experienced (3.9 years average tenure).
Board Age and Tenure
2.9yrs
Average Tenure
65yo
Average Age
Experienced Board: LPLA's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive MD & Chief Risk Officer |
| Shares | 500 |
| Max Price | US$84.25 |
| Entity | Individual |
| Role | Senior Key Executive MD & Chief Risk Officer |
| Shares | 10,747 |
| Max Price | US$77.34 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Dan Arnold (55yo)
President
- Tenure: 2.9yrs
- Compensation: US$7.13m
Matt Audette (44yo)
Chief Financial Officer
- Tenure: 4.3yrs
- Compensation: US$3.32m
Sallie Larsen (65yo)
MD & Chief Human Capital Officer
- Tenure: 7.9yrs
- Compensation: US$1.11m
Burt White (49yo)
MD of Investor & Investment Solutions and Chief Investment Officer
- Tenure: 12.9yrs
- Compensation: US$2.16m
Andy Kalbaugh (55yo)
MD and Divisional President of National Sales & Consulting
- Tenure: 3.9yrs
Michelle Oroschakoff (57yo)
MD & Chief Legal Officer
- Tenure: 2.5yrs
- Compensation: US$1.84m
Chris Koegel
Senior Vice President of Investor Relations
- Tenure: 4.9yrs
Tracy Calder (59yo)
MD & Chief Risk Officer
- Tenure: 3.9yrs
- Compensation: US$2.41m
Scott Seese (49yo)
MD & Chief Information Officer
- Tenure: 2.4yrs
- Compensation: US$2.90m
Rich Steinmeier (45yo)
MD & Divisional President of Business Development
- Tenure: 1.3yrs
- Compensation: US$3.04m
Board Members
Rick Schifter (66yo)
Independent Director
- Tenure: 14.2yrs
- Compensation: US$278.97k
James Riepe (75yo)
Independent Director
- Tenure: 11.8yrs
- Compensation: US$305.64k
Bill Glavin (60yo)
Independent Director
- Tenure: 2.6yrs
- Compensation: US$283.97k
Anne Mulcahy (67yo)
Independent Director
- Tenure: 6.6yrs
- Compensation: US$288.57k
Dan Arnold (55yo)
President
- Tenure: 2.9yrs
- Compensation: US$7.13m
H. Eberhart (65yo)
Independent Director
- Tenure: 5.1yrs
- Compensation: US$281.07k
Jim Putnam (65yo)
Non-Executive Chairman of the Board
- Tenure: 2.8yrs
- Compensation: US$388.57k
Corey Thomas (43yo)
Independent Director
- Tenure: 0.6yrs
Allison Mnookin (49yo)
Independent Director
- Tenure: 1.5yrs
- Compensation: US$229.33k
Company Information
LPL Financial Holdings Inc.'s company bio, 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
- Market Cap: US$7.312b
- Shares outstanding: 80.82m
- Website: https://www.lpl.com
Number of Employees
Location
- LPL Financial Holdings Inc.
- 75 State Street
- 22nd Floor
- Boston
- Massachusetts
- 2109
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LPLA | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Nov 2010 |
| 7LI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 2010 |
Biography
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 | 2019/12/08 00:09 |
| End of Day Share Price | 2019/12/06 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.