LPL Financial Holdings, Inc. (LPLA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Charles Schwab Corp.

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Intercontinental Exchange, Inc.

The Goldman Sachs Group, Inc.

CME Group, Inc.

LPL Financial Holdings, Inc.

Morgan Stanley

The Bank of New York Mellon Corp.

State Street Corp.

Why is LPL Financial Holdings, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 38.79%

Healthy long term growth as Operating profit has grown by an annual rate of 19.80%

Flat results in Jun 25

ROCE(HY) Lowest at 29.46%
INTEREST COVERAGE RATIO(Q) Lowest at 654.77
RAW MATERIAL COST(Y) Grown by 9.12% (YoY)

With ROE of 38.37%, it has a expensive valuation with a 15.99 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.16%, its profits have risen by 13.4% ; the PEG ratio of the company is 3.1

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to LPL Financial Holdings, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is LPL Financial Holdings, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

LPL Financial Holdings, Inc.

14.2%

0.66

36.37%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.93%

EBIT Growth (5y)

19.80%

EBIT to Interest (avg)

7.85

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

24.20%

Dividend Payout Ratio

8.55%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

712.34%

ROE (avg)

38.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

15.99

EV to EBIT

25.04

EV to EBITDA

19.93

EV to Capital Employed

178.40

EV to Sales

3.56

PEG Ratio

3.14

Dividend Yield

0.18%

ROCE (Latest)

712.34%

ROE (Latest)

38.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

NET SALES(Q)

Highest at USD 3,835.03 MM

CASH AND EQV(HY)

Highest at USD 8,778.04 MM

DEBT-EQUITY RATIO (HY)

Lowest at 36.31 %

-13What is not working for the Company

ROCE(HY)

Lowest at 29.46%

INTEREST COVERAGE RATIO(Q)

Lowest at 654.77

RAW MATERIAL COST(Y)

Grown by 9.12% (YoY

INTEREST(Q)

Highest at USD 105.64 MM

Here's what is working for LPL Financial Holdings, Inc.

Net Sales

Highest at USD 3,835.03 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Net Sales

At USD 3,835.03 MM has Grown at 30.81%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 8,778.04 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 36.31 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 142.33 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for LPL Financial Holdings, Inc.

Interest

At USD 105.64 MM has Grown at 23.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 654.77

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 105.64 MM

in the last five periods and Increased by 23.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Raw Material Cost

Grown by 9.12% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales