Lpl Financial Holdings Inc.

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

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $24.46B
PE 24
Debt $4.44B
Cash $2.96B
EV $25.94B
FCF $96.06M

Earnings

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Sales & Net Margins

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Earnings	$1.01B
EBIT	$1.35B
ROE	36%
ROA	11%
FCF	$96.06M
Equity	$2.77B
Growth Stability	94%
PE	24.33
PEG	1.05
PB	8.83
P/FCF	254.66
P/S	2.12
Price/Cash	0.12
Debt/Equity	1.6
Debt/FCF	46.24
Net Margins	9%
Op. Margins	12%
Earnings CAGR	24%
Sales Growth YoY	23%
Sales Growth QoQ	6%
Sales CAGR	13%
FCF CAGR	14%
Equity CAGR	13%
Earnings Stability	0.88
Earnings Growth YoY	14%
Earnings Growth QoQ	5%

Earnings CAGR 5Y	23%
Sales CAGR 5Y	18%
FCF CAGR 5Y	-13%
Equity CAGR 5Y	22%
Earnings CAGR 3Y	15%
Sales CAGR 3Y	15%
FCF CAGR 3Y	-21%
Equity CAGR 3Y	16%
Market Cap	$24.46B
Revenue	$11.52B
Dividend Yield	0%
Payout Ratio	9%
Assets	$11.94B
Total Debt	$4.44B
Cash	$2.96B
Shares Outstanding	74.68M
EV	25.94B
Earnings Score	95%
Moat Score	93%
Safety Score	68%
Final Score	85%
Shares Growth 3y	-3%
Equity Growth QoQ	10%
Equity Growth YoY	33%

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-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 88%

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Lpl Financial Holdings Inc. Discounted Cash Flow

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

Years

Calculation mode

= $2.6B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$96M	$110M	$125M	$142M	$162M	$185M	$211M	$241M	$275M	$313M	$357M	$3.6B
DCF		$100M	$103M	$107M	$111M	$115M	$119M	$124M	$128M	$133M	$138M	$1.4B
Value	$2.6B

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	4%	4%	5%	6%	8%	10%	8%	6%	10%	11%	9%
ROA	-	6%	6%	7%	11%	13%	10%	8%	12%	14%	11%
ROE	-	24%	23%	25%	45%	55%	36%	28%	39%	51%	36%

Net Margins (8.88%)

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	10.71	14.93	7.22	5.3	5.17	3.72	11.97	1.67	34.37	46.24
Debt over Equity	1.81	3.1	2.68	2.48	2.44	2.36	1.79	1.7	1.26	1.81	1.6
Growth Stability	-	-	-	100%	100%	100%	100%	94%	100%	100%	94%

Bad Debt/FCF ratio (46.24)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (1.6)

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-2%	-5%	6%	21%	8%	4%	31%	11%	17%	18%
Earnings YoY growth	-	-5%	14%	24%	84%	27%	-16%	-3%	84%	26%	23%
Equity YoY growth	-	-26%	15%	18%	1%	5%	28%	27%	30%	-4%	22%
FCF YoY growth	-	45%	-29%	125%	35%	4%	36%	-63%	591%	-93%	-13%