LPL Financial Holdings Inc. (LPLA) stock analysis

P/E below its 5-year median

LPL Financial's P/E of 17.3 is below its own 5-year median of 25.6.

P/E below the industry

LPL Financial's P/E of 17.3 is below the Security & commodity brokers, dealers, exchanges & services median of 25.3.

EV/EBITDA below its 5-year median

LPL Financial's EV/EBITDA of 8.1 is below its 5-year median of 11.7.

P/B below the industry

LPL Financial's price-to-book of 4.04 is below the Security & commodity brokers, dealers, exchanges & services median of 4.26.

Trading below fair value

The share price of $301.62 is below our fair value estimate of $485.13.

Margin of safety over 20%

The price is 37.8% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 25.5% a year over the last three fiscal years.

EPS growing under 10% a year

Diluted EPS grew 1.6% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 67.2% over the last twelve months, against a 5-year average of 12.8% a year.

Growing faster than the industry

Revenue grew 31.0% over the last twelve months; the Security & commodity brokers, dealers, exchanges & services median is 14.4%.

Guidance lowered

LPL Financial lowered its 2026 Core G&A outlook on Jul 30, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity over 15%

Return on equity was 25.7% over the last twelve months and averaged 37.6% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

LPL Financial's return on equity of 25.7% is above the Security & commodity brokers, dealers, exchanges & services median of 14.2%.

Earnings grew over 5 years

Net income grew 12.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 6.8% over the last twelve months, against a 5-year average of 8.0%.

Net margin above the industry

LPL Financial's net margin of 6.8% is above the Security & commodity brokers, dealers, exchanges & services median of 3.6%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.51; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

LPL Financial paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; LPL Financial yields 0.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 7 fiscal years.

Covered by earnings

Dividends take 6.9% of net income.

Covered by free cash flow

Dividends take 9.5% of free cash flow.