Lpl Financial Holdings Inc.

Finance
Investment Bankers/Brokers/Service
www.lpl.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $24.83B
PE 23
Debt $5.52B
Cash $2.68B
EV $27.66B
FCF -$284.94M

Earnings

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Sales & Net Margins

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Earnings	$1.06B
EBIT	$1.39B
ROE	36%
ROA	10%
FCF	-$284.94M
Equity	$2.93B
Growth Stability	94%
PE	23.45
PEG	0.94
PB	8.47
P/FCF	-87.14
P/S	2
Price/Cash	0.11
Debt/Equity	1.88
Debt/FCF	-19.36
Net Margins	9%
Op. Margins	11%
Earnings CAGR	24%
Sales Growth YoY	33%
Sales Growth QoQ	13%
Sales CAGR	14%
FCF CAGR	11%
Equity CAGR	15%
Earnings Stability	0.86
Earnings Growth YoY	24%
Earnings Growth QoQ	6%

Earnings CAGR 5Y	25%
Sales CAGR 5Y	18%
FCF CAGR 5Y	-11%
Equity CAGR 5Y	21%
Earnings CAGR 3Y	17%
Sales CAGR 3Y	17%
FCF CAGR 3Y	-26%
Equity CAGR 3Y	17%
Market Cap	$24.83B
Revenue	$12.39B
Dividend Yield	0%
Payout Ratio	8%
Assets	$13.32B
Total Debt	$5.52B
Cash	$2.68B
Shares Outstanding	74.71M
EV	27.66B
Earnings Score	94%
Moat Score	92%
Safety Score	64%
Final Score	84%
Shares Growth 3y	-3%
Equity Growth QoQ	6%
Equity Growth YoY	41%

Assets & ROA

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Stockholders Equity & ROE

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LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. As of the end of 2021, the company had nearly 20,000 advisors on its platform managing over $1 trillion of client assets.

SEC Filings

Direct access to Lpl Financial Holdings Inc. (LPLA) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Lpl Financial Holdings Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Lpl Financial Holdings Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 24%

Stability 86%

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Lpl Financial Holdings Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Lpl Financial Holdings Inc..

Years

Calculation mode

= -$5.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$285M	-$315M	-$349M	-$385M	-$426M	-$471M	-$521M	-$577M	-$638M	-$705M	-$780M	-$7.8B
DCF		-$286M	-$288M	-$290M	-$291M	-$293M	-$294M	-$296M	-$297M	-$299M	-$301M	-$3B
Value	-$5.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	4%	5%	6%	8%	10%	8%	6%	10%	11%	9%	9%
ROA	-	6%	7%	11%	13%	10%	8%	12%	14%	10%	10%
ROE	-	23%	25%	45%	55%	36%	28%	39%	51%	36%	36%

Net Margins (8.55%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	14.93	7.22	5.3	5.17	3.72	11.97	1.67	34.37	-19.36	-19.36
Debt over Equity	3.1	2.68	2.48	2.44	2.36	1.79	1.7	1.26	1.81	1.88	1.88
Growth Stability	-	-	-	100%	100%	100%	94%	100%	100%	100%	94%

Good Debt/FCF ratio (-19.36)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Bad Debt/Equity ratio (1.88)

The company is overleveraged and has a bad balance between equity and debt.

Good Graham’s Stability (94%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-5%	6%	21%	8%	4%	31%	11%	17%	23%	18%
Earnings YoY growth	-	14%	24%	84%	27%	-16%	-3%	84%	26%	-1%	25%
Equity YoY growth	-	15%	18%	1%	5%	28%	27%	30%	-4%	41%	21%
FCF YoY growth	-	-29%	125%	35%	4%	36%	-63%	591%	-93%	-361%	-11%