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LPL Financial Holdings Inc. (LPLA) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

LPL Financial Holdings Inc.

LPLAMarket cap $26BPrice $324.8

Country🇺🇸United States

SectorFinancials

IndustryCapital Markets

Powers independent financial advisors with the technology, brokerage, and back-office support they need to ditch big banks and go solo. It's the largest independent broker-dealer in the US, managing over $1 trillion in advisory assets.

In Bastion Portfolios?

52W Return-4%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+25%9

Revenue Forecast

Rev CAGR (1y)+27%9

Rev CAGR (3y)+17%8

Rev CAGR (5y)+14%8

Earnings Forecast

EPS Growth Y+1+120%10

EPS Growth Y+2+23%8

EPS Growth Y+3+14%7

Quality

Margins

EBIT Margin0%8

Net Income Margin5%4

Free Cash Flow Margin-5%2

Debt

Net Debt/EBITDAna–

Efficiency

ROE19%8

ROA5%6

Earnings Stability88

GEAR+AVERAGE67

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)127

P/E Ratio (Forward 3y)108

P/BV4.44

EV Multiples

EV/EBITDA Fwd07

EV/EBIT Fwd07

Yield

Free Cash Flow Yield0.0%4

Dividend Yield0.4%1

Momentum

Short term

1 month return-7%4

3 month return+8%8

YTD return-9%4

Mid term

Price vs 52wHigh81%6

1 year return+0%5

Long term

3 year return+37%5

5 year return+99%7

Risk Shield

Price Risk

Beta1.13

Volatility37%5

Free Cash Flow

Free Cash Flow Margin-5%2

Free Cash Flow Yield0.0%4

Quality

ROCE14%6

Earnings Stability88

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

LPLALPL Financial Holdings

Revenue FY25$17.0B

GROWTH RATING↗

STRONG84 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+25%9

Revenue, next 1Y+27%9

Revenue, next 3Y, CAGR+17%8

Revenue, next 5Y, CAGR+14%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+120%10

EPS growth, FY27E+23%8

EPS growth, FY28E+14%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 84% of companies worldwide.

Revenue grew 25%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 17%/yr over the next 3 years, ahead of most of the market.8/10

The runway holds up: revenue is set to grow 14%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 23%/yr vs revenue 17%/yr), so margins should widen.

WATCH

Revenue grew 25%/yr over the last 3 years; forecasts see it cooling to 17%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE57 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return+8%8

YTD return-9%4

MID & LONG-TERM▾SCORE

% of 52-week high81%6

1-year return+0%5

3-year return+37%5

5-year return+99%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+8%).

WATCH

Average long-term results. Multi-year returns are middling (+37% over three years and +99% over five), roughly average for the market.

It's up 0.3% over the past year, but 19% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-7%) and so far this year (-9%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on LPL Financial. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

LPLALPL Financial Holdings

Revenue FY25$17.0B

GROWTH RATING↗

STRONG84 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+25%9

Revenue, next 1Y+27%9

Revenue, next 3Y, CAGR+17%8

Revenue, next 5Y, CAGR+14%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+120%10

EPS growth, FY27E+23%8

EPS growth, FY28E+14%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 84% of companies worldwide.

Revenue grew 25%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 17%/yr over the next 3 years, ahead of most of the market.8/10

The runway holds up: revenue is set to grow 14%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 23%/yr vs revenue 17%/yr), so margins should widen.

WATCH

Revenue grew 25%/yr over the last 3 years; forecasts see it cooling to 17%/yr.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE57 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-7%4

3-month return+8%8

YTD return-9%4

MID & LONG-TERM▾SCORE

% of 52-week high81%6

1-year return+0%5

3-year return+37%5

5-year return+99%7

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over three months (+8%).

WATCH

Average long-term results. Multi-year returns are middling (+37% over three years and +99% over five), roughly average for the market.

It's up 0.3% over the past year, but 19% below its 52-week high. That is a touch ahead of the market.

Returns sit at the market level over the past month (-7%) and so far this year (-9%).

WEAKNESSES

None flagged.

BOTTOM LINE

Mixed Momentum

Horizons disagree or sit near the middle of the pack. Momentum investors may want a clearer trend before sizing up.

04Value

Are you paying a fair price for it?

Stop guessing on LPL Financial. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community