Morningstar

LPL Financial Holdings Inc LPLA

Morningstar Rating
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Stock XNAS Rating as of
$231.07 +1.22 (0.53%)
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As of Delayed Price Closed

Company Report

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Maintaining Our $314 Fair Value for LPL Financial After Departure of CEO Dan Arnold

Michael Wong

LPL Financial provides an advisory and brokerage platform for advisors, broker/dealer services for financial institutions, and resources for practice management. At the end of 2023, advisors on LPL's platform served over $1.3 trillion of wealth management assets in the United States. LPL aims to offer services to all advisors regardless of business model. For example, advisors can be licensed with LPL Financial, giving LPL responsibility for managing risk and compliance, or they can operate as a hybrid Registered Investment Advisor using LPL Financial for custody, trading, and administrative support. LPL has also launched a new employee model that allows advisors to fully outsource practice management.

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Price vs Fair Value

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LPLA is trading at a 316% premium.
Price
$231.07
Fair Value
$541.00
Uncertainty
High
1-Star Price
$938.60
5-Star Price
$769.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

LPL Financial has expanded the number of advisor business models it supports, which increases its addressable market.

Bears

LPL’s decision to add an employee channel for advisors could distract management.

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News

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Trading Information

Previous Close Price
$229.85
Day Range
$222.75–231.87
52-Week Range
$187.19–289.88
Bid/Ask
$231.00 / $248.60
Market Cap
$17.28 Bil
Volume/Avg
1.3 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
15.06
Price/Sales
1.61
Dividend Yield (Trailing)
0.52%
Dividend Yield (Forward)
0.52%
Total Yield
3.67%

Company Profile

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 June 2024, the company had over 23,000 advisors on its platform managing $1.5 trillion of client assets. The company doesn't have material operations outside of the United States.
Sector
Financial Services
Industry
Capital Markets
Stock Style Box
Mid Core
Total Number of Employees
9,023
Website
https://www.lpl.com

Competitors

Valuation

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Metric
LPLA
AMP
SF
Price/Earnings (Normalized)
 15.0615.1018.20
Price/Book Value
 6.879.472.05
Price/Sales
 1.613.102.33
Price/Cash Flow
 10.2514.9715.87
Price/Earnings
LPLA
AMP
SF

Financial Strength

Metric
LPLA
AMP
SF
Quick Ratio
 1.48——
Current Ratio
 2.06——
Interest Coverage
 6.7912.65—
Quick Ratio
LPLA
AMP
SF

Profitability

Metric
LPLA
AMP
SF
Return on Assets (Normalized)
 11.27%1.91%1.52%
Return on Equity (Normalized)
 52.69%73.87%12.41%
Return on Invested Capital (Normalized)
 21.98%7.66%—
Return on Assets
LPLA
AMP
SF

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