A Business at a Glance
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LPL Financial Holdings Inc.
LPLA
$26.0B
Mkt Cap
$328.70
+1.66%
LPL Financial Holdings Inc. (LPLA) has a current P/E ratio of 30.1, compared to its historical median P/E of 18.8. The stock is currently considered Expensive based on its historical valuation range.
LPL Financial Holdings Inc. (LPLA) has a 5-year average return on invested capital (ROIC) of 14.5%. This indicates solid capital allocation.
LPL Financial Holdings Inc. (LPLA) has a market capitalization of $45.0B. It is classified as a large-cap stock.
Yes, LPL Financial Holdings Inc. (LPLA) pays a dividend with a trailing twelve-month yield of 0.21%.
Based on historical P/E analysis, LPL Financial Holdings Inc. (LPLA) appears expensive. The current P/E of 30.1 is 60% above its historical median of 18.8. The estimated fair value CAGR (P/E method) is 18.3%.
LPL Financial Holdings Inc. (LPLA) operates in the Security & Commodity Brokers, Dealers, Exchanges & Services industry, within the Financials sector.
LPL Financial Holdings Inc. (LPLA) reported annual revenue of $17.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
LPL serves the financial advisor-mediated marketplace as the nation’s largest independent broker-dealer, a leading investment advisory firm, and a top custodian. We support more than 32,000 financial advisors, and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $2.4 trillion in brokerage and advisory assets. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run successful businesses. We are steadfast in our commitment to the advisor-mediated model and the belief that investors deserve access to personalized guidance from a financial advisor. We believe advisors should have the freedom to choose the business model, services and technology they need to manage their client relationships.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 18.3B | 17.0B | 12.4B | 10.1B | 8.6B | 7.7B |
| Net Income | 901M | 863M | 1.1B | 1.1B | 846M | 460M |
| EPS | $6.59 | $10.92 | $14.03 | $13.69 | $10.40 | $5.63 |
| Free Cash Flow | -1.1B | -982M | -285M | 109M | 1.6B | 237M |
| ROIC | 0.0% | 8.2% | 14.9% | 19.9% | 18.1% | 11.3% |
| Gross Margin | - | 20.8% | 25.1% | 28.4% | 26.3% | 20.7% |
| Debt/Equity | 1.26 | 1.36 | 1.87 | 1.80 | 1.25 | 1.68 |
| Dividends/Share | $0.70 | $1.20 | $1.20 | $1.20 | $1.00 | $1.00 |
| Operating Income | 0 | 1.1B | 1.4B | 1.4B | 1.1B | 601M |
| Operating Margin | 0.0% | 6.8% | 11.2% | 14.4% | 12.9% | 7.8% |
| ROE | 15.8% | 20.9% | 42.3% | 50.2% | 44.1% | 30.8% |
| Shares Outstanding | 137M | 79M | 75M | 78M | 81M | 82M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.4B | 4.3B | 4.0B | 4.3B | 5.2B | 5.6B | 5.9B | 7.7B | 8.6B | 10.1B | 12.4B | 17.0B | 18.3B |
| Gross Margin | N/A | N/A | 20.5% | 21.7% | 23.7% | 27.1% | 24.7% | 20.7% | 26.3% | 28.4% | 25.1% | 20.8% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 422M | 440M | 437M | 457M | 507M | 556M | 609M | 741M | 821M | 980M | 1.1B | 1.6B | 1.6B |
| EBIT | 295M | 283M | 298M | 365M | 593M | 742M | 626M | 601M | 1.1B | 1.4B | 1.4B | 1.1B | 0 |
| Op. Margin | 6.7% | 6.6% | 7.3% | 8.5% | 11.4% | 13.2% | 10.7% | 7.8% | 12.9% | 14.4% | 11.2% | 6.8% | 0.0% |
| Net Income | 178M | 169M | 192M | 239M | 439M | 560M | 473M | 460M | 846M | 1.1B | 1.1B | 863M | 901M |
| Net Margin | 4.1% | 3.9% | 4.7% | 5.6% | 8.5% | 10.0% | 8.0% | 6.0% | 9.8% | 10.6% | 8.5% | 5.1% | 4.9% |
| Non-Recurring | 33M | 12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 7.0% | 6.3% | 6.5% | 7.5% | 13.1% | 16.5% | 13.3% | 11.3% | 18.1% | 19.9% | 14.9% | 8.2% | 0.0% |
| ROE | 17.2% | 20.0% | 25.0% | 26.7% | 45.3% | 56.0% | 40.4% | 30.8% | 44.1% | 50.2% | 42.3% | 20.9% | 15.8% |
| ROA | 4.4% | 3.9% | 4.1% | 4.7% | 8.1% | 9.9% | 7.6% | 6.3% | 9.7% | 10.7% | 8.9% | 5.4% | 4.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 232M | 279M | 389M | 453M | 582M | 624M | 790M | 453M | 1.9B | 513M | 278M | -411M | -461M |
| Free Cash Flow | 143M | 207M | 261M | 341M | 449M | 467M | 634M | 237M | 1.6B | 109M | -285M | -982M | -1.1B |
| Owner Earnings | 147M | 177M | 288M | 341M | 465M | 495M | 646M | 258M | 1.7B | 197M | -123M | -884M | -951M |
| CapEx | 90M | 73M | 128M | 112M | 133M | 156M | 156M | 216M | 307M | 403M | 563M | 570M | 617M |
| Maint. CapEx | 58M | 73M | 76M | 84M | 88M | 96M | 110M | 151M | 200M | 247M | 309M | 393M | 407M |
| Growth CapEx | 32M | 0 | 52M | 28M | 45M | 61M | 46M | 65M | 107M | 156M | 254M | 177M | 210M |
| D&A | 58M | 73M | 76M | 84M | 88M | 96M | 110M | 151M | 200M | 247M | 309M | 393M | 407M |
| CapEx/OCF | 38.6% | 26.0% | 46.4% | 24.7% | 22.8% | 25.1% | 19.7% | 47.7% | 15.8% | 78.7% | 202.6% | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 96M | 96M | 89M | 90M | 88M | 83M | 79M | 80M | 80M | 92M | 90M | 94M | 96M |
| Dividend Yield | 2.3% | 2.6% | 3.8% | 2.4% | 1.6% | 1.3% | 1.3% | 0.7% | 0.5% | 0.5% | 0.5% | 0.3% | 0.2% |
| Share Buybacks | 275M | 391M | 25M | 114M | 418M | 500M | 150M | 90M | 325M | 1.1B | 170M | 100M | -240K |
| Buyback Yield | 7.0% | 10.9% | 0.9% | 2.3% | 8.1% | 6.6% | 1.8% | 0.7% | 1.9% | 6.2% | 0.7% | 0.3% | -0.0% |
| Stock-Based Comp | 28M | 29M | 25M | 29M | 29M | 33M | 34M | 44M | 53M | 69M | 92M | 79M | 83M |
| Debt Repayment | 4.9M | 13M | 18M | 2.4B | 15M | 411M | 11M | 16M | 1.9M | 13M | 18M | 31M | 31M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.2B | 1.5B | 1.5B | 1.8B | 2.0B | 1.8B | 1.5B | 2.3B | 1.8B | 3.2B | 4.5B | 6.1B | 6.1B |
| Cash & Equiv. | 412M | 725M | 748M | 811M | 511M | 590M | 809M | 495M | 848M | 466M | 967M | 1.0B | 1.1B |
| Long-Term Debt | 1.5B | 2.2B | 2.2B | 2.4B | 2.4B | 2.4B | 2.3B | 2.8B | 2.7B | 3.7B | 5.5B | 7.3B | 7.2B |
| Debt/Equity | 1.68 | 3.13 | 2.78 | 2.72 | 2.60 | 2.34 | 1.78 | 1.68 | 1.25 | 1.80 | 1.87 | 1.36 | 1.26 |
| Interest Coverage | 5.7 | 4.8 | 3.1 | 3.4 | 4.7 | 5.7 | 5.9 | 5.8 | 8.8 | 7.7 | 5.1 | 2.8 | 2.8 |
| Equity | 972M | 716M | 821M | 965M | 974M | 1.0B | 1.3B | 1.7B | 2.2B | 2.1B | 2.9B | 5.3B | 5.7B |
| Total Assets | 4.0B | 4.5B | 4.8B | 5.4B | 5.5B | 5.9B | 6.6B | 8.0B | 9.5B | 10.4B | 13.3B | 18.5B | 18.8B |
| Total Liabilities | 3.1B | 3.8B | 4.0B | 4.4B | 4.5B | 4.9B | 5.3B | 6.3B | 7.3B | 8.3B | 10.4B | 13.1B | 13.1B |
| Intangibles | 431M | 392M | 354M | 414M | 484M | 440M | 397M | 455M | 428M | 672M | 1.5B | 3.3B | 3.4B |
| Retained Earnings | 396M | 469M | 570M | 718M | 1.1B | 1.6B | 1.9B | 2.3B | 3.1B | 4.1B | 5.1B | 5.8B | 6.2B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.75 | 1.74 | 2.13 | 2.59 | 4.85 | 6.62 | 5.86 | 5.63 | 10.40 | 13.69 | 14.03 | 10.92 | 6.59 |
| Owner EPS | 1.44 | 1.82 | 3.20 | 3.69 | 5.13 | 5.86 | 8.01 | 3.15 | 20.82 | 2.53 | -1.63 | -11.19 | -6.95 |
| Book Value | 9.55 | 7.38 | 9.11 | 10.46 | 10.75 | 12.11 | 16.30 | 20.45 | 26.66 | 26.69 | 38.84 | 67.62 | 41.56 |
| Cash Flow/Share | 2.28 | 2.88 | 4.32 | 4.92 | 6.42 | 7.38 | 9.79 | 5.55 | 23.93 | 6.58 | 3.68 | -5.21 | 9.56 |
| Dividends/Share | 0.94 | 0.99 | 0.99 | 0.98 | 0.98 | 1.00 | 1.00 | 1.00 | 1.00 | 1.20 | 1.20 | 1.20 | 0.70 |
| Shares Out. | 101.7M | 97.0M | 90.1M | 92.2M | 90.6M | 84.6M | 80.7M | 81.7M | 81.3M | 77.9M | 75.5M | 79.0M | 136.8M |
| Valuation | |||||||||||||
| P/E Ratio | 22.0 | 21.3 | 15.3 | 20.5 | 11.7 | 13.4 | 17.3 | 28.1 | 20.2 | 16.6 | 23.6 | 34.1 | 49.9 |
| P/FCF | 27.5 | 17.4 | 11.2 | 14.4 | 11.5 | 16.1 | 12.9 | 54.5 | 10.4 | 161.4 | N/A | N/A | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | 4.0 | 5.0 | 3.6 | 5.1 | 5.3 | 7.4 | 6.2 | 7.7 | 7.9 | 8.5 | 8.5 | 5.5 | 7.9 |
| Price/Sales | 1.0 | 0.9 | 0.6 | 0.9 | 1.0 | 1.1 | 1.1 | 1.5 | 1.9 | 1.7 | 1.6 | 1.6 | 2.5 |
| FCF Yield | 3.6% | 5.8% | 8.9% | 7.0% | 8.7% | 6.2% | 7.7% | 1.8% | 9.6% | 0.6% | -1.1% | -3.3% | -2.4% |
| Market Cap | 3.9B | 3.6B | 2.9B | 4.9B | 5.1B | 7.5B | 8.2B | 12.9B | 17.1B | 17.7B | 25.0B | 29.4B | 45.0B |
| Avg. Price | 40.88 | 37.61 | 25.74 | 41.19 | 60.03 | 75.59 | 76.55 | 141.69 | 198.89 | 219.01 | 259.14 | 352.88 | 328.70 |
| Year-End Price | 38.56 | 37.07 | 32.60 | 53.18 | 56.82 | 89.02 | 101.66 | 158.32 | 210.10 | 226.62 | 330.80 | 372.16 | 328.70 |
LPL Financial Holdings Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
LPL Financial Holdings Inc. trades at 30.1x trailing earnings, compared to its 15-year median P/E of 18.8x, suggesting it is currently Expensive relative to its historical range. The company's 5-year average ROIC is 14.5% with a gross margin of 24.3%. Total shareholder yield (dividends) is 0.2%. At current prices, the estimated annualized return to fair value is -5.8%.
LPL Financial Holdings Inc. (LPLA) has a net profit margin of 5.1%. This is a modest margin.
LPL Financial Holdings Inc. (LPLA) generated $-982 million in free cash flow in its most recent fiscal year. Negative free cash flow may indicate heavy investment or operational challenges.
LPL Financial Holdings Inc. (LPLA) has a debt-to-equity ratio of 1.36. This indicates moderate leverage.
LPL Financial Holdings Inc. (LPLA) reported earnings per share (EPS) of $10.92 in its most recent fiscal year.
LPL Financial Holdings Inc. (LPLA) has a return on equity (ROE) of 20.9%. This indicates the company generates strong returns for shareholders.
LPL Financial Holdings Inc. (LPLA) has a 5-year average gross margin of 24.3%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for LPL Financial Holdings Inc. (LPLA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
LPL Financial Holdings Inc. (LPLA) has a book value per share of $67.62, based on its most recent annual SEC filing.