(LPLA) LPL Financial Holdings - Overview
Stock: Brokerage, Advisory, Annuities, Mutual Funds, Insurance
| Risk 5d forecast | |
|---|---|
| Volatility | 62.0% |
| Relative Tail Risk | -10.9% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.17 |
| Alpha | -25.71 |
| Character TTM | |
|---|---|
| Beta | 1.276 |
| Beta Downside | 1.527 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.18% |
| CAGR/Max DD | 0.33 |
EPS (Earnings per Share)
Revenue
Description: LPLA LPL Financial Holdings February 11, 2026
LPL Financial Holdings Inc. (NASDAQ:LPLA) operates an integrated brokerage and investment-advisory platform that serves independent financial advisors and institutional advisors across the United States. Its product suite spans variable and fixed annuities, mutual funds, equities, fixed-income, alternative investments, retirement and 529 plans, as well as FDIC-insured cash sweep accounts. The firm also delivers fee-based access to ETFs, stocks, bonds, options strategies, unit investment trusts, institutional money managers, and no-load multi-manager variable annuities, plus a suite of practice-growth tools, custodial services, insurance brokerage, and technology solutions such as proposal generation and portfolio analytics.
According to LPLA’s FY 2025 Form 10-K (filed January 2026), the company reported total revenue of **$2.13 billion**, net income of **$398 million**, and an operating margin of **23.0%**. Assets under administration (AUA) reached **$1.21 trillion**, and the advisor network grew to **≈14,500** registered advisors, up 4% year-over-year. These figures suggest a stable fee-based revenue base, but the modest net-income growth (≈2% YoY) reflects pressure from higher compensation costs and regulatory compliance expenses.
Key macro and sector drivers that materially affect LPLA’s outlook include: (1) **Interest-rate environment** – rising rates can boost net-interest margins on cash sweep products but may compress the valuation of fixed-income holdings; (2) **Advisor consolidation trend** – the industry’s move toward larger advisory platforms can create both acquisition opportunities and competitive pressure on pricing; (3) **Regulatory scrutiny** – ongoing SEC and FINRA rule changes around fiduciary standards and fee disclosures could impact product mix and cost structure. The firm’s diversified product lineup and technology platform are positioned to mitigate some of these headwinds, though the net effect remains uncertain.
For a deeper dive into LPLA’s valuation dynamics, you might explore the ValueRay platform’s detailed cash-flow model.
Piotroski VR‑10 (Strict, 0-10) 4.5
| Net Income: 863.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.09 > 0.02 and ΔFCF/TA -6.49 > 1.0 |
| NWC/Revenue: -10.06% < 20% (prev 21.16%; Δ -31.22% < -1%) |
| CFO/TA -0.06 > 3% & CFO -1.20b > Net Income 863.0m |
| Net Debt (6.22b) to EBITDA (2.18b): 2.85 < 3 |
| Current Ratio: 0.53 > 1.5 & < 3 |
| Outstanding Shares: last quarter (80.4m) vs 12m ago 6.73% < -2% |
| Gross Margin: 23.68% > 18% (prev 0.27%; Δ 2340 % > 0.5%) |
| Asset Turnover: 106.8% > 50% (prev 93.00%; Δ 13.82% > 0%) |
| Interest Coverage Ratio: 3.85 > 6 (EBITDA TTM 2.18b / Interest Expense TTM 403.4m) |
Altman Z'' 1.55
| A: -0.09 (Total Current Assets 1.93b - Total Current Liabilities 3.64b) / Total Assets 18.49b |
| B: 0.32 (Retained Earnings 5.85b / Total Assets 18.49b) |
| C: 0.10 (EBIT TTM 1.55b / Avg Total Assets 15.91b) |
| D: 0.45 (Book Value of Equity 5.85b / Total Liabilities 13.15b) |
| Altman-Z'' Score: 1.55 = BB |
Beneish M -1.79
| DSRI: 1.08 (Receivables 5.76b/3.89b, Revenue 16.99b/12.39b) |
| GMI: 1.15 (GM 23.68% / 27.21%) |
| AQI: 2.11 (AQ_t 0.82 / AQ_t-1 0.39) |
| SGI: 1.37 (Revenue 16.99b / 12.39b) |
| TATA: 0.11 (NI 863.0m - CFO -1.20b) / TA 18.49b) |
| Beneish M-Score: -1.79 (Cap -4..+1) = B |
What is the price of LPLA shares?
Over the past week, the price has changed by -13.10%, over one month by -8.15%, over three months by -10.13% and over the past year by -9.80%.
Is LPLA a buy, sell or hold?
- StrongBuy: 7
- Buy: 5
- Hold: 2
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the LPLA price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 455 | 35.9% |
| Analysts Target Price | 455 | 35.9% |
| ValueRay Target Price | 361.8 | 8.1% |
LPLA Fundamental Data Overview February 13, 2026
P/E Forward = 12.5945
P/S = 1.6348
P/B = 5.0735
P/EG = 0.4513
Revenue TTM = 16.99b USD
EBIT TTM = 1.55b USD
EBITDA TTM = 2.18b USD
Long Term Debt = 7.18b USD (from longTermDebt, two quarters ago)
Short Term Debt = 344.0m USD (from shortTermDebt, two quarters ago)
Debt = 7.26b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.22b USD (from netDebt column, last quarter)
Enterprise Value = 33.24b USD (27.11b + Debt 7.26b - CCE 1.13b)
Interest Coverage Ratio = 3.85 (Ebit TTM 1.55b / Interest Expense TTM 403.4m)
EV/FCF = -20.84x (Enterprise Value 33.24b / FCF TTM -1.60b)
FCF Yield = -4.80% (FCF TTM -1.60b / Enterprise Value 33.24b)
FCF Margin = -9.39% (FCF TTM -1.60b / Revenue TTM 16.99b)
Net Margin = 5.08% (Net Income TTM 863.0m / Revenue TTM 16.99b)
Gross Margin = 23.68% ((Revenue TTM 16.99b - Cost of Revenue TTM 12.97b) / Revenue TTM)
Gross Margin QoQ = 23.69% (prev 19.73%)
Tobins Q-Ratio = 1.80 (Enterprise Value 33.24b / Total Assets 18.49b)
Interest Expense / Debt = 1.45% (Interest Expense 105.6m / Debt 7.26b)
Taxrate = 24.36% (96.8m / 397.6m)
NOPAT = 1.17b (EBIT 1.55b * (1 - 24.36%))
Current Ratio = 0.53 (Total Current Assets 1.93b / Total Current Liabilities 3.64b)
Debt / Equity = 1.36 (Debt 7.26b / totalStockholderEquity, last quarter 5.34b)
Debt / EBITDA = 2.85 (Net Debt 6.22b / EBITDA 2.18b)
Debt / FCF = -3.90 (negative FCF - burning cash) (Net Debt 6.22b / FCF TTM -1.60b)
Total Stockholder Equity = 4.65b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.43% (Net Income 863.0m / Total Assets 18.49b)
RoE = 18.57% (Net Income TTM 863.0m / Total Stockholder Equity 4.65b)
RoCE = 13.13% (EBIT 1.55b / Capital Employed (Equity 4.65b + L.T.Debt 7.18b))
RoIC = 10.48% (NOPAT 1.17b / Invested Capital 11.21b)
WACC = 8.61% (E(27.11b)/V(34.37b) * Re(10.62%) + D(7.26b)/V(34.37b) * Rd(1.45%) * (1-Tc(0.24)))
Discount Rate = 10.62% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.70%
Fair Price DCF = unknown (Cash Flow -1.60b)
EPS Correlation: 76.20 | EPS CAGR: 30.09% | SUE: 1.48 | # QB: 10
Revenue Correlation: 98.03 | Revenue CAGR: 26.12% | SUE: 0.80 | # QB: 0
EPS next Quarter (2026-03-31): EPS=5.85 | Chg30d=+0.122 | Revisions Net=+3 | Analysts=12
EPS current Year (2026-12-31): EPS=23.94 | Chg30d=+0.598 | Revisions Net=+6 | Growth EPS=+19.2% | Growth Revenue=+24.2%
EPS next Year (2027-12-31): EPS=29.15 | Chg30d=+0.433 | Revisions Net=+3 | Growth EPS=+21.8% | Growth Revenue=+13.5%