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LPL Financial Holdings

Nasdaq:LPLA
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LPLA
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. The last earnings update was 48 days ago. More info.


Add to Portfolio Compare Print
  • LPL Financial Holdings has significant price volatility in the past 3 months.
LPLA Share Price and Events
7 Day Returns
6%
NasdaqGS:LPLA
5.7%
US Capital Markets
2.4%
US Market
1 Year Returns
-25.1%
NasdaqGS:LPLA
-8.3%
US Capital Markets
-10%
US Market
LPLA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LPL Financial Holdings (LPLA) 6% -9.8% -43.9% -25.1% 44% 33.8%
US Capital Markets 5.7% -9% -20.5% -8.3% 8.4% 26.6%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • LPLA underperformed the Capital Markets industry which returned -8.3% over the past year.
  • LPLA underperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
LPLA
Industry
5yr Volatility vs Market

Value

 Is LPL Financial Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LPL Financial Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LPL Financial Holdings.

NasdaqGS:LPLA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $12.83 * 39.4%
$5.05
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $12.83
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:LPLA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.71
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.707 (1 + (1- 21%) (61.52%))
1.034
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.034 * 5.44%)
7.37%

Discounted Cash Flow Calculation for NasdaqGS:LPLA using Excess Returns Model Model

The calculations below outline how an intrinsic value for LPL Financial Holdings is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:LPLA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (39.4% – 7.37%) * $12.83)
$4.11
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $4.11 / (7.37% - 1.74%)
$73.01
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $12.83 + $73.01
$85.83
NasdaqGS:LPLA Discount to Share Price
Calculation Result
Value per share (USD) From above. $85.83
Current discount Discount to share price of $54.45
= -1 x ($54.45 - $85.83) / $85.83
36.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LPL Financial Holdings is available for.
Intrinsic value
37%
Share price is $54.45 vs Future cash flow value of $85.83
Current Discount Checks
For LPL Financial Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LPL Financial Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LPL Financial Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LPL Financial Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LPL Financial Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:LPLA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $6.78
NasdaqGS:LPLA Share Price ** NasdaqGS (2020-04-08) in USD $54.45
United States of America Capital Markets Industry PE Ratio Median Figure of 92 Publicly-Listed Capital Markets Companies 33.4x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LPL Financial Holdings.

NasdaqGS:LPLA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:LPLA Share Price ÷ EPS (both in USD)

= 54.45 ÷ 6.78

8.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LPL Financial Holdings is good value based on earnings compared to the US Capital Markets industry average.
  • LPL Financial Holdings is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does LPL Financial Holdings's expected growth come at a high price?
Raw Data
NasdaqGS:LPLA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.03x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-20.2%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 36 Publicly-Listed Capital Markets Companies 1.87x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NasdaqGS:LPLA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.03x ÷ -20.2%

-0.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LPL Financial Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on LPL Financial Holdings's assets?
Raw Data
NasdaqGS:LPLA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $12.76
NasdaqGS:LPLA Share Price * NasdaqGS (2020-04-08) in USD $54.45
United States of America Capital Markets Industry PB Ratio Median Figure of 192 Publicly-Listed Capital Markets Companies 8.59x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:LPLA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:LPLA Share Price ÷ Book Value per Share (both in USD)

= 54.45 ÷ 12.76

4.27x

* Primary Listing of LPL Financial Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LPL Financial Holdings is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess LPL Financial Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. LPL Financial Holdings has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is LPL Financial Holdings expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-20.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LPL Financial Holdings expected to grow at an attractive rate?
  • LPL Financial Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.7%.
Growth vs Market Checks
  • LPL Financial Holdings's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • LPL Financial Holdings's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:LPLA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:LPLA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -20.2%
NasdaqGS:LPLA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 0.9%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 4.9%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:LPLA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:LPLA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 5,942 300 1
2021-12-31 5,660 563 393 8
2020-12-31 5,404 512 391 8
2020-04-09
NasdaqGS:LPLA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 5,625 624 560
2019-09-30 5,494 895 554
2019-06-30 5,409 467 529
2019-03-31 5,319 639 501
2018-12-31 5,188 582 439
2018-09-30 4,988 526 383
2018-06-30 4,721 409 335
2018-03-31 4,488 424 284
2017-12-31 4,281 453 239
2017-09-30 4,172 136 217
2017-06-30 4,126 225 210
2017-03-31 4,080 163 190

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LPL Financial Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • LPL Financial Holdings's revenue is expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:LPLA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from LPL Financial Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LPLA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.94 3.94 3.94 1.00
2021-12-31 5.12 8.29 3.76 8.00
2020-12-31 4.86 6.83 4.11 8.00
2020-04-09
NasdaqGS:LPLA Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 6.78
2019-09-30 6.59
2019-06-30 6.20
2019-03-31 5.78
2018-12-31 4.99
2018-09-30 4.30
2018-06-30 3.73
2018-03-31 3.16
2017-12-31 2.65
2017-09-30 2.41
2017-06-30 2.35
2017-03-31 2.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LPL Financial Holdings is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess LPL Financial Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LPL Financial Holdings has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has LPL Financial Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LPL Financial Holdings's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LPL Financial Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • LPL Financial Holdings's 1-year earnings growth is less than its 5-year average (27.4% vs 28.9%)
  • LPL Financial Holdings's earnings growth has exceeded the US Capital Markets industry average in the past year (27.4% vs 9.7%).
Earnings and Revenue History
LPL Financial Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LPL Financial Holdings Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:LPLA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 5,624.86 559.88 465.45
2019-09-30 5,494.00 553.50 460.93
2019-06-30 5,409.48 528.65 453.00
2019-03-31 5,318.52 501.33 444.16
2018-12-31 5,188.40 439.46 456.17
2018-09-30 4,987.80 383.26 463.58
2018-06-30 4,720.91 334.54 438.22
2018-03-31 4,487.61 284.20 425.35
2017-12-31 4,281.48 238.86 385.34
2017-09-30 4,172.50 216.50 357.65
2017-06-30 4,125.83 210.31 358.12
2017-03-31 4,079.51 189.73 356.38
2016-12-31 4,049.38 191.93 353.15
2016-09-30 4,062.27 177.01 351.78
2016-06-30 4,099.58 166.11 346.66
2016-03-31 4,171.06 168.50 337.64
2015-12-31 4,275.05 168.78 334.70
2015-09-30 4,358.98 190.52 285.54
2015-06-30 4,393.47 182.74 317.04
2015-03-31 4,395.53 175.59 321.11
2014-12-31 4,373.66 178.04 313.11
2014-09-30 4,363.32 173.92 326.65
2014-06-30 4,327.30 178.28 290.10
2014-03-31 4,253.49 180.28 278.50
2013-12-31 4,140.86 181.86 268.72
2013-09-30 3,991.17 174.38 288.22
2013-06-30 3,845.19 171.05 276.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst LPL Financial Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • LPL Financial Holdings used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • LPL Financial Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess LPL Financial Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LPL Financial Holdings has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is LPL Financial Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LPL Financial Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LPL Financial Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LPL Financial Holdings's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of LPL Financial Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LPL Financial Holdings Company Filings, last reported 3 months ago.

NasdaqGS:LPLA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,023.87 2,398.82 621.23
2019-09-30 1,019.95 2,360.22 947.99
2019-06-30 1,025.12 2,363.44 432.52
2019-03-31 1,009.70 2,368.50 705.56
2018-12-31 974.07 2,371.81 520.76
2018-09-30 979.47 2,375.11 801.30
2018-06-30 1,006.70 2,378.42 842.01
2018-03-31 1,008.49 2,381.72 836.07
2017-12-31 965.01 2,385.02 822.52
2017-09-30 940.57 2,388.32 591.06
2017-06-30 893.10 2,178.87 963.24
2017-03-31 870.27 2,182.51 809.69
2016-12-31 821.00 2,175.44 756.11
2016-09-30 791.13 2,178.64 803.20
2016-06-30 753.99 2,181.84 760.50
2016-03-31 723.06 2,185.04 791.72
2015-12-31 715.61 2,188.24 732.22
2015-09-30 945.40 1,666.13 426.65
2015-06-30 943.09 1,693.84 563.40
2015-03-31 979.56 1,641.55 505.08
2014-12-31 971.60 1,625.20 425.80
2014-09-30 1,063.37 1,526.97 472.42
2014-06-30 1,068.59 1,529.68 450.35
2014-03-31 1,056.25 1,532.39 482.69
2013-12-31 1,099.97 1,535.10 525.55
2013-09-30 1,091.66 1,537.81 598.10
2013-06-30 1,186.50 1,540.52 599.34
  • LPL Financial Holdings's level of debt (234.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (167.3% vs 234.3% today).
  • Debt is well covered by operating cash flow (26%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
X
Financial health checks
We assess LPL Financial Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LPL Financial Holdings has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is LPL Financial Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.84%
Current annual income from LPL Financial Holdings dividends. Estimated to be 1.95% next year.
If you bought $2,000 of LPL Financial Holdings shares you are expected to receive $37 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • LPL Financial Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.93%).
  • LPL Financial Holdings's dividend is below the markets top 25% of dividend payers in United States of America (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:LPLA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:LPLA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.10 3.00
2021-12-31 1.07 7.00
2020-12-31 1.04 7.00
2020-04-09
NasdaqGS:LPLA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-21 1.000 1.729
2020-01-30 1.000 1.056
2019-10-29 1.000 1.090
2019-10-24 1.000 1.257
2019-07-30 1.000 1.296
2019-07-25 1.000 1.166
2019-01-31 1.000 1.281
2018-10-30 1.000 1.586
2018-10-25 1.000 1.772
2018-05-03 1.000 1.512
2018-02-27 1.000 1.630
2018-02-21 1.000 1.551
2018-02-01 1.000 1.596
2017-07-27 1.000 1.947
2017-05-02 1.000 2.388
2017-04-27 1.000 2.410
2017-02-24 1.000 2.543
2017-02-09 1.000 2.477
2016-11-03 1.000 2.659
2016-11-02 1.000 3.221
2016-05-11 1.000 3.719
2016-02-24 1.000 4.220
2016-02-11 1.000 5.009
2015-08-05 1.000 2.540
2015-04-30 1.000 2.234
2015-02-20 1.000 2.289
2015-02-19 1.000 2.208
2014-10-30 0.960 2.229
2014-07-30 0.960 2.092
2014-04-28 0.960 1.979
2014-04-23 0.960 2.026
2014-02-26 0.960 1.851
2014-02-11 0.960 1.783
2013-10-30 0.760 1.647
2013-08-02 0.760 1.970
2013-07-31 0.760 1.950
2013-04-25 0.540 1.455
2013-02-06 0.540 1.656
2012-10-31 0.480 1.669
2012-07-31 0.480 1.674
2012-04-02 0.480 1.422

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, LPL Financial Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but LPL Financial Holdings only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of LPL Financial Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (6.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.7x coverage).
X
Income/ dividend checks
We assess LPL Financial Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LPL Financial Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LPL Financial Holdings has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of LPL Financial Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Arnold
COMPENSATION $7,669,954
AGE 55
TENURE AS CEO 3.3 years
CEO Bio

Mr. Dan Hogan Arnold serves as President and Chief Executive Officer of LPL Financial Holdings Inc. (“LPL”) (NASDAQ: LPLA). In this role, he sets the strategy and direction for the LPL with the Board, while leading the senior executive team in shaping and communicating the values and operating principles of the organization. He has more than 20 years of industry experience. He has served as LPL President since March 2015 and has been responsible for driving the development of the firm’s long-term strategy for growth. In this same role, he also oversaw the LPL’s primary client-facing functions and led its Advisor and Institution Solutions business unit, which focused on business development, existing advisor and institution growth, enhancing the client experience, the firm’s research capabilities and its sponsor partnerships. He was previously the LPL’s Chief Financial Officer, responsible for formulating financial policy and leading the company’s capital management efforts. He joined LPL in 2007 as Managing Director of Institution Services, with responsibilities for the growth and support of the LPL’s bank and credit union clients. He joined LPL through its acquisition of UVEST Financial Services which he led as President and Chief Operating Officer. Earlier, he spent seven years in the telecommunications industry, holding leadership roles with BellSouth and MCI in corporate finance, sales, and marketing. He earned a BS in electrical engineering from Auburn University and holds an MBA in Finance from Georgia State University. He is FINRA Series 7, 24, 27, and 63 registered through LPL.

CEO Compensation
  • Dan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Dan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the LPL Financial Holdings management team in years:

3.8
Average Tenure
54
Average Age
  • The tenure for the LPL Financial Holdings management team is about average.
Management Team

Dan Arnold

TITLE
President
COMPENSATION
$8M
AGE
55
TENURE
3.3 yrs

Matt Audette

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
44
TENURE
4.6 yrs

Scott Seese

TITLE
MD & Chief Information Officer
COMPENSATION
$3M
AGE
49
TENURE
2.8 yrs

Rich Steinmeier

TITLE
MD & Divisional President of Business Development
COMPENSATION
$2M
AGE
45
TENURE
1.7 yrs

Dayton Semerjian

TITLE
MD & Chief Customer Care Officer
COMPENSATION
$2M
AGE
54
TENURE
1.2 yrs

Burt White

TITLE
MD of Investor & Investment Solutions and Chief Investment Officer
COMPENSATION
$2M
AGE
49
TENURE
13.3 yrs

Chris Koegel

TITLE
Senior Vice President of Investor Relations
TENURE
5.3 yrs

Michelle Oroschakoff

TITLE
MD & Chief Legal Officer
COMPENSATION
$2M
AGE
57
TENURE
2.8 yrs

Sallie Larsen

TITLE
MD & Chief Human Capital Officer
COMPENSATION
$1M
AGE
65
TENURE
8.3 yrs

Andy Kalbaugh

TITLE
MD and Divisional President of National Sales & Consulting
AGE
55
TENURE
4.3 yrs
Board of Directors Tenure

Average tenure and age of the LPL Financial Holdings board of directors in years:

3.3
Average Tenure
65
Average Age
  • The tenure for the LPL Financial Holdings board of directors is about average.
Board of Directors

Jim Putnam

TITLE
Independent Non-Executive Chairman
COMPENSATION
$389K
AGE
65
TENURE
3.1 yrs

Dan Arnold

TITLE
President
COMPENSATION
$8M
AGE
55
TENURE
3.3 yrs

Rick Schifter

TITLE
Independent Director
COMPENSATION
$278K
AGE
66
TENURE
14.5 yrs

Anne Mulcahy

TITLE
Independent Director
COMPENSATION
$293K
AGE
67
TENURE
6.9 yrs

H. Eberhart

TITLE
Independent Director
COMPENSATION
$281K
AGE
65
TENURE
5.4 yrs

James Riepe

TITLE
Independent Director
COMPENSATION
$289K
AGE
75
TENURE
12.2 yrs

Bill Glavin

TITLE
Independent Director
COMPENSATION
$283K
AGE
60
TENURE
2.9 yrs

Allison Mnookin

TITLE
Independent Director
COMPENSATION
$271K
AGE
49
TENURE
1.8 yrs

Corey Thomas

TITLE
Independent Director
COMPENSATION
$267K
AGE
43
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
10. May 19 Sell Tracy Calder Individual 08. May 19 08. May 19 -500 $84.25 $-42,125
X
Management checks
We assess LPL Financial Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LPL Financial Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here's Why We Think LPL Financial Holdings (NASDAQ:LPLA) Is Well Worth Watching

If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in LPL Financial Holdings (NASDAQ:LPLA). … Although LPL Financial Holdings certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

Have Insiders Been Selling LPL Financial Holdings Inc. (NASDAQ:LPLA) Shares?

So we'll take a look at whether insiders have been buying or selling shares in LPL Financial Holdings Inc. … For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for LPL Financial Holdings LPL Financial Holdings Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the MD &amp; Chief Risk Officer, Tracy Calder, for US$831k worth of shares, at about US$77.34 per share. … We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

Simply Wall St -

What Makes LPL Financial Holdings Inc. (NASDAQ:LPLA) A Great Dividend Stock?

With a 1.2% yield and a seven-year payment history, investors probably think LPL Financial Holdings looks like a reliable dividend stock. … However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. It's good to see LPL Financial Holdings has been growing its earnings per share at 29% a year over the past 5 years. The company is only paying out a fraction of its earnings as dividends, and in the past been able to use the retained earnings to grow its profits rapidly - an ideal combination. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Second, the company has not been able to generate earnings growth, and its history of dividend payments too short for us to thoroughly evaluate the dividend's consistency across an economic cycle.

Simply Wall St -

Is LPL Financial Holdings Inc.'s (NASDAQ:LPLA) CEO Salary Justified?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … See our latest analysis for LPL Financial Holdings How Does Dan Arnold's Compensation Compare With Similar Sized Companies? … We think total compensation is more important but we note that the CEO salary is lower, at US$800k.

Simply Wall St -

Should You Investigate LPL Financial Holdings Inc. (NASDAQ:LPLA) At US$82.63?

What’s more interesting is that, LPL Financial Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … NasdaqGS:LPLA Past and Future Earnings, July 4th 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price.

Simply Wall St -

Does LPL Financial Holdings (NASDAQ:LPLA) Have A Healthy Balance Sheet?

NasdaqGS:LPLA Historical Debt, June 17th 2019 How Healthy Is LPL Financial Holdings's Balance Sheet? … While this might seem like a lot, it is not so bad since LPL Financial Holdings has a market capitalization of US$7.00b, and so it could probably strengthen its balance sheet by raising capital if it needed to. … Because it carries more debt than cash, we think it's worth watching LPL Financial Holdings's balance sheet over time.

Simply Wall St -

LPL Financial Holdings Inc. (NASDAQ:LPLA): A Fundamentally Attractive Investment

For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on LPL Financial Holdings here. … NasdaqGS:LPLA Income Statement, June 4th 2019 Next Steps: For LPL Financial Holdings, I've compiled three key aspects you should further examine: Future Outlook: What are well-informed industry analysts predicting for LPLA’s future growth? … Financial Health: Are LPLA’s operations financially sustainable?

Simply Wall St -

Should You Be Worried About Insider Transactions At LPL Financial Holdings Inc. (NASDAQ:LPLA)?

So shareholders might well want to know whether insiders have been buying or selling shares in LPL Financial Holdings Inc. … Check out our latest analysis for LPL Financial Holdings The Last 12 Months Of Insider Transactions At LPL Financial Holdings In the last twelve months, the biggest single sale by an insider was when the MD &amp; Chief Risk Officer, Tracy Calder, sold US$831k worth of shares at a price of US$77.34 per share. … Insider Ownership of LPL Financial Holdings For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Is Now The Time To Put LPL Financial Holdings (NASDAQ:LPLA) On Your Watchlist?

LPL Financial Holdings's Earnings Per Share Are Growing. … If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow. … LPL Financial Holdings shareholders can take confidence from the fact that EBIT margins are up from 12% to 14%, and revenue is growing.

Simply Wall St -

Does LPL Financial Holdings Inc.'s (NASDAQ:LPLA) P/E Ratio Signal A Buying Opportunity?

To keep it practical, we'll show how LPL Financial Holdings Inc.'s (NASDAQ:LPLA) P/E ratio could help you assess the value on offer. … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and business development companies. The company also provides advisory platforms that provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, it offers cash sweep programs; and retirement solutions for commission-and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, the company provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services to trusts for estates and families, as well as insurance brokerage general agency services; and technology products, such as proposal generation, investment analytics, and portfolio modeling. The company was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California.

Details
Name: LPL Financial Holdings Inc.
LPLA
Exchange: NasdaqGS
Founded: 1989
$4,306,511,810
79,091,126
Website: http://www.lpl.com
Address: LPL Financial Holdings Inc.
4707 Executive Drive,
San Diego,
California, 92121,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS LPLA Common Stock Nasdaq Global Select US USD 18. Nov 2010
DB 7LI Common Stock Deutsche Boerse AG DE EUR 18. Nov 2010
Number of employees
Current staff
Staff numbers
4,343
LPL Financial Holdings employees.
Industry
Investment Banking and Brokerage
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/09 02:46
End of day share price update: 2020/04/08 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/21
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.