(LPLA) LPL Financial Holdings - Ratings and Ratios
Brokerage, Advisory, Retirement, Cash, Insurance, Tech
EPS (Earnings per Share)
Revenue
| Risk via 10d forecast | |
|---|---|
| Volatility | 34.5% |
| Value at Risk 5%th | 51.5% |
| Relative Tail Risk | -9.15% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.25 |
| Alpha | -9.04 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.497 |
| Beta | 1.193 |
| Beta Downside | 1.643 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.18% |
| Mean DD | 9.73% |
| Median DD | 8.30% |
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 | 27,535m |
| Sub-Industry | Investment Banking & Brokerage |
| IPO / Inception | 2010-11-18 |
| Return 12m vs S&P 500 | -5.96% |
| Analyst Rating | 4.20 of 5 |
LPLA Dividends
| Metric | Value |
|---|---|
| Dividend Yield | 0.34% |
| Yield on Cost 5y | 1.33% |
| Yield CAGR 5y | 4.66% |
| Payout Consistency | 92.0% |
| Payout Ratio | 6.3% |
LPLA Growth Ratios
| Metric | Value |
|---|---|
| CAGR 3y | 14.41% |
| CAGR/Max DD Calmar Ratio | 0.43 |
| CAGR/Mean DD Pain Ratio | 1.48 |
| Current Volume | 404.5k |
| Average Volume | 672.4k |
Piotroski VR‑10 (Strict, 0-10) 4.0
| Net Income (833.1m TTM) > 0 and > 6% of Revenue (6% = 934.2m TTM) |
| FCFTA -0.11 (>2.0%) and ΔFCFTA -11.56pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 31.16% (prev 29.32%; Δ 1.84pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA -0.08 (>3.0%) and CFO -1.38b <= Net Income 833.1m (YES >=105%, WARN >=100%) |
| Net Debt (6.36b) to EBITDA (2.59b) ratio: 2.46 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.24 (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 43.37% (prev 27.82%; Δ 15.55pp) >=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 5.30 (EBITDA TTM 2.59b / Interest Expense TTM 379.8m) >= 6 (WARN >= 3) |
Altman Z'' 4.12
| (A) 0.27 = (Total Current Assets 8.78b - Total Current Liabilities 3.93b) / Total Assets 18.03b |
| (B) 0.31 = Retained Earnings (Balance) 5.57b / Total Assets 18.03b |
| (C) 0.13 = EBIT TTM 2.01b / Avg Total Assets 14.99b |
| (D) 0.43 = Book Value of Equity 5.57b / Total Liabilities 12.99b |
| Total Rating: 4.12 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 64.08
| 1. Piotroski 4.0pt |
| 2. FCF Yield -5.76% |
| 3. FCF Margin -12.46% |
| 4. Debt/Equity 1.53 |
| 5. Debt/Ebitda 2.46 |
| 6. ROIC - WACC (= 8.16)% |
| 7. RoE 20.61% |
| 8. Rev. Trend 97.44% |
| 9. EPS Trend 56.95% |
What is the price of LPLA shares?
Over the past week, the price has changed by -2.02%, over one month by +1.53%, over three months by -3.26% and over the past year by +7.52%.
Is LPLA a buy, sell or hold?
- 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 | 439.1 | 26% |
| Analysts Target Price | 439.1 | 26% |
| ValueRay Target Price | 388.3 | 11.5% |
LPLA Fundamental Data Overview November 25, 2025
P/E Trailing = 32.0615
P/E Forward = 25.3807
P/S = 1.8159
P/B = 5.4602
P/EG = 1.3648
Beta = 0.592
Revenue TTM = 15.57b USD
EBIT TTM = 2.01b USD
EBITDA TTM = 2.59b USD
Long Term Debt = 7.18b USD (from longTermDebt, last quarter)
Short Term Debt = 344.0m USD (from shortTermDebt, last quarter)
Debt = 7.71b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.36b USD (from netDebt column, last quarter)
Enterprise Value = 33.70b USD (27.53b + Debt 7.71b - CCE 1.54b)
Interest Coverage Ratio = 5.30 (Ebit TTM 2.01b / Interest Expense TTM 379.8m)
FCF Yield = -5.76% (FCF TTM -1.94b / Enterprise Value 33.70b)
FCF Margin = -12.46% (FCF TTM -1.94b / Revenue TTM 15.57b)
Net Margin = 5.35% (Net Income TTM 833.1m / Revenue TTM 15.57b)
Gross Margin = 43.37% ((Revenue TTM 15.57b - Cost of Revenue TTM 8.82b) / Revenue TTM)
Gross Margin QoQ = 85.48% (prev 25.80%)
Tobins Q-Ratio = 1.87 (Enterprise Value 33.70b / Total Assets 18.03b)
Interest Expense / Debt = 1.38% (Interest Expense 106.3m / Debt 7.71b)
Taxrate = 13.47% (-4.59m / -34.1m)
NOPAT = 1.74b (EBIT 2.01b * (1 - 13.47%))
Current Ratio = 2.24 (Total Current Assets 8.78b / Total Current Liabilities 3.93b)
Debt / Equity = 1.53 (Debt 7.71b / totalStockholderEquity, last quarter 5.04b)
Debt / EBITDA = 2.46 (Net Debt 6.36b / EBITDA 2.59b)
Debt / FCF = -3.28 (negative FCF - burning cash) (Net Debt 6.36b / FCF TTM -1.94b)
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 = 17.92% (EBIT 2.01b / Capital Employed (Equity 4.04b + L.T.Debt 7.18b))
RoIC = 16.55% (NOPAT 1.74b / Invested Capital 10.51b)
WACC = 8.39% (E(27.53b)/V(35.24b) * Re(10.41%) + D(7.71b)/V(35.24b) * Rd(1.38%) * (1-Tc(0.13)))
Discount Rate = 10.41% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.66%
Fair Price DCF = unknown (Cash Flow -1.94b)
EPS Correlation: 56.95 | EPS CAGR: 7.98% | SUE: 4.0 | # QB: 9
Revenue Correlation: 97.44 | Revenue CAGR: 27.51% | SUE: 2.56 | # QB: 1
Additional Sources for LPLA Stock
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Fund Manager Positions: Dataroma | Stockcircle