Overview Dividends

(LPLA) LPL Financial Holdings - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US50212V1008

Brokerage, Advisory, Retirement, Cash, Insurance, Tech

LPLA EPS (Earnings per Share)

EPS Growth (3Y CAGR): -58.27%
EPS Trend (3Y Correlation): -41.8%

LPLA Revenue

Revenue Growth (3Y CAGR): 76.46%
Revenue Trend (3Y Correlation): 82.1%

Description: LPLA LPL Financial Holdings

LPL Financial Holdings Inc. (NASDAQ:LPLA) operates an integrated brokerage and investment-advisory platform serving independent financial advisors and advisors employed by institutions across the United States. Founded in 1989 and headquartered in San Diego, the firm rebranded from LPL Investment Holdings to LPL Financial in June 2012.

The firm’s product suite spans variable and fixed annuities, mutual funds, equities, fixed-income securities, alternative investments, retirement and 529 education savings plans, and insurance. Its cash-management offerings include FDIC-insured bank sweep vehicles and money-market accounts. LPL also delivers fee-based access to ETFs, stocks, bonds, select options strategies, unit investment trusts, institutional money managers, and no-load multi-manager variable annuities, plus a suite of practice-growth tools, custodial services, and technology solutions such as proposal generation and portfolio analytics.

According to the most recent FY 2023 Form 10-K, LPL reported revenue of approximately $2.1 billion, net income of $0.5 billion, and assets under administration (AUA) of roughly $500 billion, serving about 16,000 financial advisors. Two key drivers of future performance are (1) the ongoing shift from commission-based to fee-based advisory models, which tends to generate more stable recurring revenue, and (2) the macro-economic environment-particularly interest-rate trends that influence demand for fixed-income products and cash-sweep balances. A sector-wide base-rate analysis shows that firms with >$400 billion AUA have historically achieved 7-9% revenue growth when interest rates rise modestly, suggesting LPL could benefit if rates remain in the 4-5% range.

If you want a data-driven, scenario-based valuation to test these assumptions, a quick look at ValueRay’s analytical tools may be worthwhile.

LPLA Stock Overview

Market Cap in USD	25,180m
Sub-Industry	Investment Banking & Brokerage
IPO / Inception	2010-11-18

LPLA Stock Ratings

Growth Rating	62.7%
Fundamental	71.1%
Dividend Rating	48.7%
Return 12m vs S&P 500	14.8%
Analyst Rating	4.20 of 5

LPLA Dividends

Dividend Yield 12m	0.36%
Yield on Cost 5y	1.49%
Annual Growth 5y	4.66%
Payout Consistency	92.0%
Payout Ratio	6.6%

LPLA Growth Ratios

Growth Correlation 3m	-92.1%
Growth Correlation 12m	45.7%
Growth Correlation 5y	93.1%
CAGR 5y	12.96%
CAGR/Max DD 3y (Calmar Ratio)	0.39
CAGR/Mean DD 3y (Pain Ratio)	1.09
Sharpe Ratio 12m	1.51
Alpha	23.07
Beta	0.611
Volatility	35.46%
Current Volume	1904.6k
Average Volume 20d	730.6k
Stop Loss	324.9 (-3.9%)
Signal	0.57

Piotroski VR‑10 (Strict, 0-10) 5.0

Net Income (1.12b TTM) > 0 and > 6% of Revenue (6% = 847.5m TTM)

FCFTA -0.00 (>2.0%) and ΔFCFTA -1.00pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 50.21% (prev 29.82%; Δ 20.39pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.03 (>3.0%) and CFO 563.7m <= Net Income 1.12b (YES >=105%, WARN >=100%)

Net Debt (3.15b) to EBITDA (2.50b) ratio: 1.26 <= 3.0 (WARN <= 3.5)

Current Ratio 3.03 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (77.8m) change vs 12m ago 2.93% (target <= -2.0% for YES)

Gross Margin 43.97% (prev 30.00%; Δ 13.97pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 97.50% (prev 95.02%; Δ 2.48pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 5.78 (EBITDA TTM 2.50b / Interest Expense TTM 341.3m) >= 6 (WARN >= 3)

Altman Z'' 5.10

(A) 0.41 = (Total Current Assets 10.58b - Total Current Liabilities 3.49b) / Total Assets 17.47b

(B) 0.32 = Retained Earnings (Balance) 5.62b / Total Assets 17.47b

(D) 0.45 = Book Value of Equity 5.62b / Total Liabilities 12.40b

Total Rating: 5.10 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 71.06

1. Piotroski 5.0pt = 0.0

2. FCF Yield -0.02% = -0.01

3. FCF Margin -0.04% = -0.01

4. Debt/Equity 1.45 = 1.54

5. Debt/Ebitda 1.26 = 1.37

6. ROIC - WACC (= 9.29)% = 11.61

7. RoE 32.17% = 2.50

8. Rev. Trend 82.08% = 6.16

9. EPS Trend -41.82% = -2.09

What is the price of LPLA shares?

As of October 20, 2025, the stock is trading at USD 337.94 with a total of 1,904,644 shares traded.
Over the past week, the price has changed by +6.37%, over one month by +0.65%, over three months by -10.90% and over the past year by +32.29%.

Is LPL Financial Holdings a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, LPL Financial Holdings (NASDAQ:LPLA) is currently (October 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 71.06 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of LPLA is around 326.88 USD . This means that LPLA is currently overvalued and has a potential downside of -3.27%.

Is LPLA a buy, sell or hold?

LPL Financial Holdings has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy LPLA.

Strong Buy: 7
Buy: 5
Hold: 2
Sell: 1
Strong Sell: 0

What are the forecasts/targets for the LPLA price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	434.1	28.5%
Analysts Target Price	434.1	28.5%
ValueRay Target Price	358.4	6.1%

Last update: 2025-10-07 02:28

LPLA Fundamental Data Overview

Market Cap USD = 25.18b (25.18b USD * 1.0 USD.USD)
P/E Trailing = 21.5864
P/E Forward = 21.7865
P/S = 1.8302
P/B = 4.9331
P/EG = 1.1654
Beta = 0.611
Revenue TTM = 14.13b USD
EBIT TTM = 1.97b USD
EBITDA TTM = 2.50b USD
Long Term Debt = 7.18b USD (from longTermDebt, last quarter)
Short Term Debt = 1.05b USD (from shortTermDebt, last fiscal year)
Debt = 7.34b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.15b USD (from netDebt column, last quarter)
Enterprise Value = 28.21b USD (25.18b + Debt 7.34b - CCE 4.31b)
Interest Coverage Ratio = 5.78 (Ebit TTM 1.97b / Interest Expense TTM 341.3m)
FCF Yield = -0.02% (FCF TTM -5.38m / Enterprise Value 28.21b)
FCF Margin = -0.04% (FCF TTM -5.38m / Revenue TTM 14.13b)
Net Margin = 7.91% (Net Income TTM 1.12b / Revenue TTM 14.13b)
Gross Margin = 43.97% ((Revenue TTM 14.13b - Cost of Revenue TTM 7.92b) / Revenue TTM)
Gross Margin QoQ = 90.61% (prev 26.33%)
Tobins Q-Ratio = 1.61 (Enterprise Value 28.21b / Total Assets 17.47b)
Interest Expense / Debt = 1.44% (Interest Expense 105.6m / Debt 7.34b)
Taxrate = 25.91% (95.6m / 368.8m)
NOPAT = 1.46b (EBIT 1.97b * (1 - 25.91%))
Current Ratio = 3.03 (Total Current Assets 10.58b / Total Current Liabilities 3.49b)
Debt / Equity = 1.45 (Debt 7.34b / totalStockholderEquity, last quarter 5.07b)
Debt / EBITDA = 1.26 (Net Debt 3.15b / EBITDA 2.50b)
Debt / FCF = -586.6 (out of range, set to none) (Net Debt 3.15b / FCF TTM -5.38m)
Total Stockholder Equity = 3.48b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.40% (Net Income 1.12b / Total Assets 17.47b)
RoE = 32.17% (Net Income TTM 1.12b / Total Stockholder Equity 3.48b)
RoCE = 18.53% (EBIT 1.97b / Capital Employed (Equity 3.48b + L.T.Debt 7.18b))
RoIC = 15.94% (NOPAT 1.46b / Invested Capital 9.17b)
WACC = 6.64% (E(25.18b)/V(32.52b) * Re(8.27%) + D(7.34b)/V(32.52b) * Rd(1.44%) * (1-Tc(0.26)))
Discount Rate = 8.27% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.99%
Fair Price DCF = unknown (Cash Flow -5.38m)
EPS Correlation: -41.82 | EPS CAGR: -58.27% | SUE: -4.0 | # QB: 0
Revenue Correlation: 82.08 | Revenue CAGR: 76.46% | SUE: 0.10 | # QB: 0

Additional Sources for LPLA Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle