LPLA$374.286
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AI LPLA Summary
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Powered by LiveAIOverall Analysis
BuyLPL Financial Holdings Inc. presents a compelling investment case with strong fundamental performance, particularly in profitability and revenue growth. While the thematic positioning is moderate and technicals indicate some short-term headwinds, the overall financial health and market position suggest a positive outlook.
Thematic
LPL Financial operates within the financial services sector, benefiting from trends in wealth management and independent advisor growth. However, it faces competition and evolving regulatory landscapes.
Fundamental
LPL Financial Holdings Inc. demonstrates robust financial health with consistent revenue growth, strong profitability, and a solid balance sheet. The company's ability to convert revenue to profit is noteworthy, and its capital structure indicates a manageable debt level.
Technical
Technical indicators suggest mixed signals. While the stock has shown strong performance over the past year, recent daily and short-term technicals indicate potential weakness or consolidation, with several indicators pointing towards selling pressure.
| Factor | Score |
|---|---|
| Financial Services Industry Growth | 70 |
| Independent Advisor Model | 80 |
| Technological Adoption | 60 |
| Regulatory Environment | 50 |
| Interest Rate Sensitivity | 65 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 80 |
| Growth | 90 |
| Balance Sheet Health | 75 |
| Cash Flow | 70 |
| Debt Management | 65 |
| Factor | Score |
|---|---|
| Trend Analysis | 50 |
| Momentum | 70 |
| Short-term Oscillators | 60 |
| Price Action | 40 |
| Volume Analysis | 55 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Attractive Valuation Metrics
The Price-to-Earnings (P/E) ratio on a trailing twelve months (TTM) basis is 35.7, which, while seemingly high, should be evaluated against its forward P/E and the company's growth prospects. The Price/Sales (P/S) ratio of 2.9 suggests the market is valuing its revenue at nearly three times its current level.
Consistent Earnings Beat
The company has consistently beaten earnings estimates, with recent quarters showing surprises of 10.29% (2025 Q2), 7.82% (2025 Q1), and 12.1% (2024 Q4), indicating strong operational execution and effective cost management.
Bearish Points (8)
High Quarterly P/E Ratio
The Price-to-Earnings (P/E) ratio for the most recent quarters (e.g., 2025 Q1 at 82.1, 2024 Q4 at 96.3) is exceptionally high. This suggests that the current market price may not be justified by current earnings, implying a potential for significant price correction if future earnings growth does not meet these elevated expectations.
Negative Free Cash Flow
The company reported negative free cash flow in the latest annual period (-$284.94 million in 2024) and several recent quarterly periods. This indicates that operating cash flow is insufficient to cover capital expenditures, which could strain financial flexibility.
Calendar
May 2025
30
Ex-Dividend Date
June 2025
12
Next Dividend Date
August 2025
1
Next Earnings Date
H: $4.36
A: $4.21
L: $4.14
H: 3.78B
A: 3.78B
L: 3.77B
Profile
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 institutions in the United States. The company's brokerage offerings include variable and fixed annuities, mutual funds, equities, fixed income, alternative investments, retirement and 529 education savings plans, and insurance; and client cash programs consist of Federal Deposit Insurance Corporation (FDIC) insured bank sweep vehicles, and a client cash and money market account. It also provides fee-based platforms that provide access to mutual funds, exchange traded funds, stocks, bonds, certain options strategies, unit investment trusts, institutional money managers, and no-load multi-manager variable annuities. In addition, the company offers retirement solutions for commission and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, it provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services for estates and families; an advisor-facing trading and portfolio rebalancing platform; 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.
Seasonals
Price Target
434.92 USD
The 39 analysts offering 1 year price forecasts for LPLA have a max estimate of 490.00 and a min estimate of 358.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
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