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): 7.98%
EPS Trend (3Y Correlation): 56.9%

LPLA Revenue

Revenue Growth (3Y CAGR): 27.51%
Revenue Trend (3Y Correlation): 79.5%

Description: LPLA LPL Financial Holdings October 14, 2025

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	29,973m
Sub-Industry	Investment Banking & Brokerage
IPO / Inception	2010-11-18

LPLA Stock Ratings

Growth Rating	69.0%
Fundamental	73.9%
Dividend Rating	48.6%
Return 12m vs S&P 500	7.81%
Analyst Rating	4.20 of 5

LPLA Dividends

Dividend Yield 12m	0.32%
Yield on Cost 5y	1.44%
Annual Growth 5y	4.66%
Payout Consistency	92.0%
Payout Ratio	6.3%

LPLA Growth Ratios

Growth Correlation 3m	-21.6%
Growth Correlation 12m	35.3%
Growth Correlation 5y	93%
CAGR 5y	18.55%
CAGR/Max DD 3y (Calmar Ratio)	0.56
CAGR/Mean DD 3y (Pain Ratio)	1.91
Sharpe Ratio 12m	1.44
Alpha	23.67
Beta	0.592
Volatility	29.34%
Current Volume	593.4k
Average Volume 20d	692.6k
Stop Loss	362.2 (-3%)
Signal	-0.01

Piotroski VR‑10 (Strict, 0-10) 4.5

Net Income (833.1m TTM) > 0 and > 6% of Revenue (6% = 934.2m TTM)

FCFTA -0.00 (>2.0%) and ΔFCFTA -0.97pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue -6.29% (prev 29.32%; Δ -35.61pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.03 (>3.0%) and CFO 563.7m <= Net Income 833.1m (YES >=105%, WARN >=100%)

Net Debt (5.34b) to EBITDA (2.75b) ratio: 1.95 <= 3.0 (WARN <= 3.5)

Current Ratio 0.70 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (80.4m) change vs 12m ago 6.57% (target <= -2.0% for YES)

Gross Margin 59.33% (prev 29.33%; Δ 30.00pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 103.9% (prev 96.44%; Δ 7.45pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 5.71 (EBITDA TTM 2.75b / Interest Expense TTM 379.8m) >= 6 (WARN >= 3)

Altman Z'' 2.07

(A) -0.05 = (Total Current Assets 2.34b - Total Current Liabilities 3.32b) / Total Assets 18.03b

(B) 0.31 = Retained Earnings (Balance) 5.57b / Total Assets 18.03b

(D) 0.43 = Book Value of Equity 5.57b / Total Liabilities 12.99b

Total Rating: 2.07 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 73.92

1. Piotroski 4.50pt = -0.50

2. FCF Yield -0.01% = -0.01

3. FCF Margin -0.03% = -0.01

4. Debt/Equity 1.62 = 1.31

5. Debt/Ebitda 1.95 = 0.11

6. ROIC - WACC (= 12.41)% = 12.50

7. RoE 20.61% = 1.72

8. Rev. Trend 79.45% = 5.96

9. EPS Trend 56.95% = 2.85

What is the price of LPLA shares?

As of November 09, 2025, the stock is trading at USD 373.50 with a total of 593,388 shares traded.
Over the past week, the price has changed by -1.01%, over one month by +17.70%, over three months by +1.35% and over the past year by +22.93%.

Is LPL Financial Holdings a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, LPL Financial Holdings (NASDAQ:LPLA) is currently (November 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 73.92 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 394.01 USD . This means that LPLA is currently overvalued and has a potential downside of 5.49%.

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	440.2	17.9%
Analysts Target Price	440.2	17.9%
ValueRay Target Price	432.2	15.7%

LPLA Fundamental Data Overview November 06, 2025

Market Cap USD = 29.97b (29.97b USD * 1.0 USD.USD)
P/E Trailing = 35.3626
P/E Forward = 21.7865
P/S = 1.9767
P/B = 4.9331
P/EG = 1.1654
Beta = 0.592
Revenue TTM = 15.57b USD
EBIT TTM = 2.17b USD
EBITDA TTM = 2.75b USD
Long Term Debt = 4.45b USD (from longTermDebt, last fiscal year)
Short Term Debt = 348.2m USD (from shortTermDebt, last quarter)
Debt = 8.16b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.34b USD (from netDebt column, last quarter)
Enterprise Value = 36.58b USD (29.97b + Debt 8.16b - CCE 1.56b)
Interest Coverage Ratio = 5.71 (Ebit TTM 2.17b / Interest Expense TTM 379.8m)
FCF Yield = -0.01% (FCF TTM -5.38m / Enterprise Value 36.58b)
FCF Margin = -0.03% (FCF TTM -5.38m / Revenue TTM 15.57b)
Net Margin = 5.35% (Net Income TTM 833.1m / Revenue TTM 15.57b)
Gross Margin = 59.33% ((Revenue TTM 15.57b - Cost of Revenue TTM 6.33b) / Revenue TTM)
Gross Margin QoQ = 85.48% (prev 90.61%)
Tobins Q-Ratio = 2.03 (Enterprise Value 36.58b / Total Assets 18.03b)
Interest Expense / Debt = 1.30% (Interest Expense 106.3m / Debt 8.16b)
Taxrate = 13.47% (-4.59m / -34.1m)
NOPAT = 1.88b (EBIT 2.17b * (1 - 13.47%))
Current Ratio = 0.70 (Total Current Assets 2.34b / Total Current Liabilities 3.32b)
Debt / Equity = 1.62 (Debt 8.16b / totalStockholderEquity, last quarter 5.04b)
Debt / EBITDA = 1.95 (Net Debt 5.34b / EBITDA 2.75b)
Debt / FCF = -994.1 (out of range, set to none) (Net Debt 5.34b / FCF TTM -5.38m)
Total Stockholder Equity = 4.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.62% (Net Income 833.1m / Total Assets 18.03b)
RoE = 20.61% (Net Income TTM 833.1m / Total Stockholder Equity 4.04b)
RoCE = 25.54% (EBIT 2.17b / Capital Employed (Equity 4.04b + L.T.Debt 4.45b))
RoIC = 19.09% (NOPAT 1.88b / Invested Capital 9.83b)
WACC = 6.69% (E(29.97b)/V(38.14b) * Re(8.20%) + D(8.16b)/V(38.14b) * Rd(1.30%) * (1-Tc(0.13)))
Discount Rate = 8.20% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.66%
Fair Price DCF = unknown (Cash Flow -5.38m)
EPS Correlation: 56.95 | EPS CAGR: 7.98% | SUE: 4.0 | # QB: 9
Revenue Correlation: 79.45 | Revenue CAGR: 27.51% | SUE: 2.56 | # QB: 1

Additional Sources for LPLA Stock

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