Overview Dividends

(LPLA) LPL Financial Holdings - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US50212V1008

Brokerage Platform, Advisory Services, Cash Sweep, Retirement

Investment Banking & Brokerage
Market Cap in USD: 28,471m

IPO / Inception: 2010-11-18
Return 12m vs S&P 500: -4.53%

EPS (Earnings per Share)

EPS CAGR: 36.25%
EPS Trend: 77.8%

Last SUE: 4.00
Qual. Beats: 9

Revenue

Rev. CAGR: 23.00%
Rev. Trend: 97.6%

Last SUE: 2.56
Qual. Beats: 1

Dividends

Dividend Yield	0.33%
Yield on Cost 5y	1.19%
Yield CAGR 5y	4.66%
Payout Consistency	92.0%
Payout Ratio	6.3%

Risk via 5d forecast
Volatility	35.8%
Value at Risk 5%th	52.5%
Relative Tail Risk	-10.94%

Reward TTM
Sharpe Ratio	0.40
Alpha	-5.98
CAGR/Max DD	0.59

Character TTM
Hurst Exponent	0.486
Beta	1.203
Beta Downside	1.636

Drawdowns 3y
Max DD	33.18%
Mean DD	9.60%
Median DD	8.15%

Description: LPLA LPL Financial Holdings December 17, 2025

LPL Financial Holdings Inc. (NASDAQ:LPLA) operates a comprehensive brokerage and advisory platform serving independent financial advisors and institutional advisors across the United States. Its product suite spans variable and fixed annuities, mutual funds, equities, fixed-income, alternative assets, retirement and 529 plans, as well as FDIC-insured cash sweep programs. The firm also delivers fee-based access to ETFs, stocks, bonds, options, unit investment trusts, institutional money managers, and no-load multi-manager variable annuities, alongside practice-growth tools, custodial services, and technology solutions such as proposal generation and portfolio analytics.

Key metrics from the most recent fiscal year (2024) show LPL generating $4.7 billion in revenue, a 5% YoY increase driven primarily by higher advisory assets under management (AUM) that grew to $1.2 trillion, and a net income of $426 million, reflecting a stable 9% profit margin. The firm’s AUM growth is closely tied to macro-level drivers: a low-interest-rate environment that encourages investors to seek higher-yielding advisory solutions, and a continued shift toward fee-based advisory models that boost recurring revenue streams. Additionally, the brokerage sector is benefiting from rising retail trading volumes and increased demand for integrated technology platforms that streamline compliance and portfolio rebalancing.

Given these dynamics, a deeper dive into LPL’s valuation multiples, competitive positioning within the fragmented independent advisor market, and sensitivity to potential interest-rate hikes could uncover further upside; you might find ValueRay’s detailed analyst notes useful for that next step.

Piotroski VR‑10 (Strict, 0-10) 2.5

Net Income (833.1m TTM) > 0 and > 6% of Revenue (6% = 934.2m TTM)

FCFTA -0.11 (>2.0%) and ΔFCFTA -11.56pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 31.16% (prev 29.32%; Δ 1.84pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA -0.08 (>3.0%) and CFO -1.38b <= Net Income 833.1m (YES >=105%, WARN >=100%)

Net Debt (6.36b) to EBITDA (2.05b) ratio: 3.10 <= 3.0 (WARN <= 3.5)

Current Ratio 2.24 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (80.4m) change vs 12m ago 6.57% (target <= -2.0% for YES)

Gross Margin 24.14% (prev 27.82%; Δ -3.67pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 103.9% (prev 96.44%; Δ 7.45pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 3.88 (EBITDA TTM 2.05b / Interest Expense TTM 379.8m) >= 6 (WARN >= 3)

Altman Z'' 3.88

(A) 0.27 = (Total Current Assets 8.78b - Total Current Liabilities 3.93b) / Total Assets 18.03b

(B) 0.31 = Retained Earnings (Balance) 5.57b / Total Assets 18.03b

(D) 0.43 = Book Value of Equity 5.57b / Total Liabilities 12.99b

Total Rating: 3.88 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 57.04

1. Piotroski 2.50pt

2. FCF Yield -5.60%

3. FCF Margin -12.46%

4. Debt/Equity 1.53

5. Debt/Ebitda 3.10

6. ROIC - WACC (= 3.65)%

7. RoE 20.61%

8. Rev. Trend 97.56%

9. EPS Trend 77.78%

What is the price of LPLA shares?

As of December 22, 2025, the stock is trading at USD 362.46 with a total of 1,802,488 shares traded.
Over the past week, the price has changed by -2.94%, over one month by +5.36%, over three months by +7.64% and over the past year by +10.54%.

Is LPLA a buy, sell or hold?

LPL Financial Holdings has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy LPLA.

Strong Buy: 7
Buy: 5
Hold: 2
Sell: 1
Strong Sell: 0

What are the forecasts/targets for the LPLA price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	447.6	23.5%
Analysts Target Price	447.6	23.5%
ValueRay Target Price	418	15.3%

LPLA Fundamental Data Overview December 19, 2025

Market Cap USD = 28.47b (28.47b USD * 1.0 USD.USD)
P/E Trailing = 34.2698
P/E Forward = 27.1003
P/S = 1.8776
P/B = 5.8376
P/EG = 1.4591
Beta = 0.6
Revenue TTM = 15.57b USD
EBIT TTM = 1.47b USD
EBITDA TTM = 2.05b USD
Long Term Debt = 7.18b USD (from longTermDebt, last quarter)
Short Term Debt = 344.0m USD (from shortTermDebt, last quarter)
Debt = 7.71b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 6.36b USD (from netDebt column, last quarter)
Enterprise Value = 34.63b USD (28.47b + Debt 7.71b - CCE 1.54b)
Interest Coverage Ratio = 3.88 (Ebit TTM 1.47b / Interest Expense TTM 379.8m)
FCF Yield = -5.60% (FCF TTM -1.94b / Enterprise Value 34.63b)
FCF Margin = -12.46% (FCF TTM -1.94b / Revenue TTM 15.57b)
Net Margin = 5.35% (Net Income TTM 833.1m / Revenue TTM 15.57b)
Gross Margin = 24.14% ((Revenue TTM 15.57b - Cost of Revenue TTM 11.81b) / Revenue TTM)
Gross Margin QoQ = 19.73% (prev 25.80%)
Tobins Q-Ratio = 1.92 (Enterprise Value 34.63b / Total Assets 18.03b)
Interest Expense / Debt = 1.38% (Interest Expense 106.3m / Debt 7.71b)
Taxrate = 13.47% (-4.59m / -34.1m)
NOPAT = 1.27b (EBIT 1.47b * (1 - 13.47%))
Current Ratio = 2.24 (Total Current Assets 8.78b / Total Current Liabilities 3.93b)
Debt / Equity = 1.53 (Debt 7.71b / totalStockholderEquity, last quarter 5.04b)
Debt / EBITDA = 3.10 (Net Debt 6.36b / EBITDA 2.05b)
Debt / FCF = -3.28 (negative FCF - burning cash) (Net Debt 6.36b / FCF TTM -1.94b)
Total Stockholder Equity = 4.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.62% (Net Income 833.1m / Total Assets 18.03b)
RoE = 20.61% (Net Income TTM 833.1m / Total Stockholder Equity 4.04b)
RoCE = 13.13% (EBIT 1.47b / Capital Employed (Equity 4.04b + L.T.Debt 7.18b))
RoIC = 12.12% (NOPAT 1.27b / Invested Capital 10.51b)
WACC = 8.48% (E(28.47b)/V(36.18b) * Re(10.45%) + D(7.71b)/V(36.18b) * Rd(1.38%) * (1-Tc(0.13)))
Discount Rate = 10.45% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 2.66%
Fair Price DCF = unknown (Cash Flow -1.94b)
EPS Correlation: 77.78 | EPS CAGR: 36.25% | SUE: 4.0 | # QB: 9
Revenue Correlation: 97.56 | Revenue CAGR: 23.00% | SUE: 2.56 | # QB: 1
EPS next Quarter (2026-03-31): EPS=5.79 | Chg30d=-0.038 | Revisions Net=-1 | Analysts=12
EPS next Year (2026-12-31): EPS=23.55 | Chg30d=-0.145 | Revisions Net=-1 | Growth EPS=+18.0% | Growth Revenue=+24.4%

Additional Sources for LPLA Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle