LPL Financial Holdings Inc. (LPLA) 10-Year Financial Performance & Capital Metrics

LPLA • • Banking & Credit

Financial ServicesCapital MarketsSecurities Brokerage & Wealth ManagementInstitutional Brokerage & Wealth Management

AboutLPL 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 financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and auction rate notes. The company also provides advisory platforms that provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, it offers money market programs; and retirement solutions for commission-and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, the company provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services to trusts for estates and families, as well as 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.Show more

Net Interest Income -$274M -46.8%
Total Revenue $12.39B +23.2%
Net Income $1.06B -0.7%
Return on Equity 42.26% -15.8%
Net Interest Margin -2.06% -14.5%
Efficiency Ratio 13.75% -2.7%
ROA 8.93% -16.8%
Equity / Assets 22.01% +9.9%
Book Value per Share 38.85 +45.5%
Tangible BV/Share -9.62 -66.6%
Debt/Equity 1.96 +2.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 45.5%
✓Efficient operations: 13.7% efficiency ratio
✓Well capitalized: 22.0% equity/assets
✓Share count reduced 3.1% through buybacks
✓Diversified revenue: 100.0% from non-interest income

✗Weaknesses

✗Weak NIM of -2.1%

Price & Volume

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Growth Metrics

Revenue CAGR

10Y10.97%

5Y17.1%

3Y17.06%

TTM-

Profit (Net Income) CAGR

10Y19.51%

5Y13.59%

3Y32.04%

TTM14.72%

EPS CAGR

10Y23.14%

5Y16.21%

3Y35.58%

TTM14.04%

ROCE

10Y Avg18.12%

5Y Avg20.33%

3Y Avg22.99%

Latest20.92%

Peer Comparison

Institutional Brokerage & Wealth Management

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
FRHCFreedom Holding Corp.	7.71B	126.09	90.06	22.74%	4.16%	0.39%	20.56%	1.61
WHGWestwood Holdings Group, Inc.	173.67M	18.46	71	5.5%	2.33%	5.76%	12.1%	0.03
LPLALPL Financial Holdings Inc.	30.16B	376.83	26.86	23.2%	8.55%	22.03%		1.96
SFStifel Financial Corp.	13.26B	130.20	20.83	15.45%	12.42%	11.53%	3.14%	0.49
RJFRaymond James Financial, Inc.	33.88B	171.55	16.66	7.94%	13.42%	17.07%	6.63%	0.35
OPYOppenheimer Holdings Inc.	823.46M	79.02	12.41	14.71%	5%	9.21%		0.81
GSIWGarden Stage Limited Ordinary Shares	29.89M	0.14	-0.49	295.95%	-79.91%	14.93%		0.03
DOMHDominari Holdings Inc.	66.61M	4.16	-1.75	7.9%	-81.03%	52.5%		0.08

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	-39.94M	-75.2M	-82.55M	-84.81M	-83.49M	-76.35M	-75.84M	-126.23M	-186.8M	-274.18M
NII Growth %	-0.23%	-0.88%	-0.1%	-0.03%	0.02%	0.09%	0.01%	-0.66%	-0.48%	-0.47%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	19.19M	21.28M	24.47M	40.21M	46.51M	29.41M	28.58M	0	0	0
Interest Expense	59.14M	96.48M	107.03M	125.02M	130M	105.77M	104.41M	126.23M	186.8M	274.18M
Loan Loss Provision	3.3B	3B	3.08B	3.62B	3.88B	4.27B	5.9B	6.11B	6.81B	8.74B
Non-Interest Income+	4.26B	4.03B	4.26B	5.15B	5.58B	5.84B	7.69B	8.6B	10.05B	12.39B
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	4.28B	4.05B	4.28B	5.19B	5.62B	5.87B	7.72B	8.6B	10.05B	12.39B
Revenue Growth %	-0.02%	-0.05%	0.06%	0.21%	0.08%	0.04%	0.31%	0.11%	0.17%	0.23%
Non-Interest Expense	564.02M	563.7M	603.91M	723.36M	741.11M	762.21M	983.57M	1.13B	1.42B	1.7B
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	353.66M	393.99M	494M	717.66M	874.99M	731.84M	730.14M	1.24B	1.63B	1.67B
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	-0.08%	0.11%	0.25%	0.45%	0.22%	-0.16%	-0%	0.7%	0.32%	0.02%
Pretax Income+	282.56M	297.52M	364.57M	592.64M	741.84M	626.07M	601.33M	1.11B	1.44B	1.39B
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	113.77M	105.58M	125.71M	153.18M	181.96M	153.43M	141.46M	265.95M	378.52M	334.28M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	168.78M	191.93M	238.86M	439.46M	559.88M	472.64M	459.87M	845.7M	1.07B	1.06B
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	-0.05%	0.14%	0.24%	0.84%	0.27%	-0.16%	-0.03%	0.84%	0.26%	-0.01%
Net Income (Continuing)	168.78M	191.93M	238.86M	439.46M	559.88M	472.64M	459.87M	845.7M	1.07B	1.06B
EPS (Diluted)+	1.74	2.13	2.59	4.85	6.62	5.86	5.63	10.40	13.69	14.03
EPS Growth %	-0.01%	0.22%	0.22%	0.87%	0.36%	-0.11%	-0.04%	0.85%	0.32%	0.02%
EPS (Basic)	1.77	2.15	2.65	4.99	6.78	5.96	5.75	10.60	13.88	14.17
Diluted Shares Outstanding	96.79M	90.01M	92.11M	90.62M	84.62M	80.7M	81.74M	81.28M	77.86M	75.43M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	724.53M	747.71M	811.14M	511.1M	590.21M	808.61M	495.25M	847.52M	465.67M	967.08M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Investments+	17.54M	17.27M	23.21M	22.67M	37.75M	95.58M	144.17M	174.86M	268.44M	336.16M
Investments Growth %	-0.03%	-0.02%	0.34%	-0.02%	0.67%	1.53%	0.51%	0.21%	0.54%	0.25%
Long-Term Investments	9.85M	8.86M	11.83M	13M	11.81M	85.83M	124.49M	138.1M	192.35M	293.9M
Accounts Receivables	0	1000K	1000K	0	0	0	0	0	0	0
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	1.37B	1.37B	1.43B	1.49B	1.5B	1.51B	1.64B	1.64B	1.86B	2.17B
Intangible Assets	392.03M	354M	414.09M	484.17M	439.84M	397.49M	455.03M	427.68M	671.59M	1.48B
PP&E (Net)	275.42M	387.37M	412.68M	461.42M	635.52M	684.79M	753.92M	872.89M	1.03B	1.33B
Other Assets	206.77M	242.81M	447.77M	305.15M	401.34M	436.43M	556.67M	564.84M	778.6M	1.09B
Total Current Assets	2.27B	2.48B	2.64B	2.72B	2.89B	3.45B	4.45B	5.74B	5.69B	6.82B
Total Non-Current Assets	2.25B	2.36B	2.71B	2.75B	2.99B	3.14B	3.54B	3.74B	4.69B	6.5B
Total Assets+	4.52B	4.83B	5.36B	5.48B	5.88B	6.6B	7.99B	9.48B	10.39B	13.32B
Asset Growth %	0.12%	0.07%	0.11%	0.02%	0.07%	0.12%	0.21%	0.19%	0.1%	0.28%
Return on Assets (ROA)	0.04%	0.04%	0.05%	0.08%	0.1%	0.08%	0.06%	0.1%	0.11%	0.09%
Accounts Payable	767.3M	950.08M	1.06B	1.08B	1.22B	1.93B	2.27B	3.29B	2.92B	2.62B
Total Debt+	2.25B	2.28B	2.49B	2.48B	2.65B	2.59B	3.05B	2.95B	3.96B	5.75B
Net Debt	1.52B	1.53B	1.68B	1.97B	2.06B	1.78B	2.56B	2.1B	3.5B	4.78B
Long-Term Debt	2.19B	2.18B	2.39B	2.37B	2.35B	2.35B	2.72B	2.72B	3.45B	4.45B
Short-Term Debt	0	0	0	0	45M	0	90M	0	280M	1.05B
Other Liabilities	78.62M	178.59M	212.97M	212.86M	263.82M	378.01M	460.05M	595.47M	1.06B	1.49B
Total Current Liabilities	1.38B	1.47B	1.6B	1.72B	1.9B	2.22B	2.74B	3.63B	3.57B	4.19B
Total Non-Current Liabilities	2.43B	2.55B	2.79B	2.79B	2.95B	3.07B	3.58B	3.68B	4.74B	6.19B
Total Liabilities	3.8B	4.01B	4.39B	4.5B	4.86B	5.28B	6.32B	7.31B	8.31B	10.39B
Total Equity+	715.61M	821M	965.01M	974.07M	1.02B	1.31B	1.67B	2.17B	2.08B	2.93B
Equity Growth %	-0.26%	0.15%	0.18%	0.01%	0.05%	0.28%	0.27%	0.3%	-0.04%	0.41%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.2%	0.25%	0.27%	0.45%	0.56%	0.4%	0.31%	0.44%	0.5%	0.42%
Book Value per Share	7.39	9.12	10.48	10.75	12.10	16.29	20.44	26.67	26.70	38.85
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	119K	120K	123K	125K	126K	127K	129K	130K	130K	131K
Additional Paid-in Capital	1.42B	1.45B	1.56B	1.63B	1.7B	1.76B	1.84B	1.91B	1.99B	2.07B
Retained Earnings	469.13M	569.95M	718.34M	1.07B	1.55B	1.94B	2.33B	3.1B	4.09B	5.07B
Accumulated OCI	553K	315K	0	0	0	0	0	0	0	0
Treasury Stock	-1.17B	-1.19B	-1.31B	-1.73B	-2.23B	-2.39B	-2.5B	-2.85B	-3.99B	-4.2B
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	279.45M	274.84M	443.78M	581.58M	623.87M	789.94M	453.13M	1.95B	512.61M	277.59M
Operating CF Growth %	0.2%	-0.02%	0.61%	0.31%	0.07%	0.27%	-0.43%	3.29%	-0.74%	-0.46%
Net Income	168.78M	191.93M	238.86M	439.46M	559.88M	472.64M	459.87M	845.7M	1.07B	1.06B
Depreciation & Amortization	111.62M	113.96M	122.36M	147.91M	161.11M	177.09M	230.69M	287.38M	354.2M	443.76M
Deferred Taxes	-30.15M	-11.55M	-9.39M	-1.75M	-18.61M	-23.68M	18.46M	-93.35M	-68.45M	-76.24M
Other Non-Cash Items	51.49M	51.1M	68.95M	87.2M	95.61M	111.66M	180.72M	214.83M	287.37M	405.59M
Working Capital Changes	-51.51M	-95.5M	-5.53M	-120.39M	-206.98M	18.26M	-480.78M	638.41M	-1.2B	-1.65B
Cash from Investing+	-74.95M	-125.29M	-437.69M	-161.75M	-180.99M	-187.5M	-458.64M	-376.4M	-860.19M	-1.59B
Purchase of Investments	-4.6M	-4.02M	-5.97M	-6.14M	-3.75M	-6.51M	-1.74M	-18.35M	-8.93M	-4.77M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	0	0	-322.82M	-27.93M	-25.85M	-30.56M	-245.91M	-56.46M	-453.48M	-1.02B
Other Investing	-1.13M	0	12K	0	0	0	0	0	0	-9.61M
Cash from Financing+	107.69M	-126.37M	57.34M	-483.36M	-533.23M	-275.19M	278.84M	-504.27M	-208.53M	1.42B
Dividends Paid	-95.81M	-89.08M	-90.27M	-88.36M	-82.6M	-79.1M	-80.09M	-79.83M	-92.19M	-89.73M
Share Repurchases	-390.83M	-25.01M	-113.73M	-417.89M	-500.37M	-150.04M	-90.01M	-325.03M	-1.1B	-170.1M
Stock Issued	0	0	0	0	0	0	0	0	0	0
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	-1000K	1000K	-1000K	1000K	-1000K	1000K	-1000K	1000K	1000K
Other Financing	20.56M	5.69M	57.15M	46.7M	16.68M	10.82M	-29M	1.7M	-34.81M	-80.53M
Net Change in Cash+	312.2M	23.18M	63.43M	-63.54M	-90.34M	327.26M	273.33M	1.06B	-556.11M	102.89M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	412.33M	724.53M	747.71M	1.63B	1.56B	1.47B	1.8B	2.07B	3.14B	2.58B
Cash at End	724.53M	747.71M	811.14M	1.56B	1.47B	1.8B	2.07B	3.14B	2.58B	2.68B
Interest Paid	51.11M	92.34M	92.65M	123.62M	126.95M	106.88M	103.69M	118.82M	191.35M	268.35M
Income Taxes Paid	131.83M	122.91M	139.2M	122.22M	213.34M	169.24M	144.56M	238.16M	535.96M	320.26M
Free Cash Flow+	206.89M	147.19M	171.55M	420.96M	467.48M	634.41M	237.15M	1.64B	109.33M	-284.94M
FCF Growth %	0.55%	-0.29%	0.17%	1.45%	0.11%	0.36%	-0.63%	5.91%	-0.93%	-3.61%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	20.01%	24.98%	26.75%	45.33%	56.05%	40.42%	30.81%	44.07%	50.22%	42.26%
Return on Assets (ROA)	3.94%	4.1%	4.69%	8.11%	9.86%	7.58%	6.3%	9.68%	10.73%	8.93%
Net Interest Margin	-0.88%	-1.56%	-1.54%	-1.55%	-1.42%	-1.16%	-0.95%	-1.33%	-1.8%	-2.06%
Efficiency Ratio	13.19%	13.92%	14.11%	13.94%	13.18%	12.98%	12.74%	13.15%	14.12%	13.75%
Equity / Assets	15.84%	16.98%	18.01%	17.78%	17.41%	19.93%	20.9%	22.86%	20.02%	22.01%
Book Value / Share	7.39	9.12	10.48	10.75	12.1	16.29	20.44	26.67	26.7	38.85
NII Growth	-22.69%	-88.25%	-9.78%	-2.74%	1.56%	8.55%	0.68%	-66.45%	-47.98%	-46.77%
Dividend Payout	56.77%	46.41%	37.79%	20.11%	14.75%	16.74%	17.42%	9.44%	8.65%	8.48%

Revenue by Segment

	2018
Asset-based Revenue	972.51M
Asset-based Revenue Growth	-
Money Market Cash Sweep Revenue	500.42M
Money Market Cash Sweep Revenue Growth	-
Recordkeeping Revenues	247.37M
Recordkeeping Revenues Growth	-
Sponsorship Programs	224.73M
Sponsorship Programs Growth	-

Frequently Asked Questions

Valuation & Price

LPL Financial Holdings Inc. (LPLA) has a price-to-earnings (P/E) ratio of 26.9x. This suggests investors expect higher future growth.

Growth & Financials

LPL Financial Holdings Inc. (LPLA) grew revenue by 23.2% over the past year. This is strong growth.

Yes, LPL Financial Holdings Inc. (LPLA) is profitable, generating $1.12B in net income for fiscal year 2024 (8.5% net margin).

Dividend & Returns

Yes, LPL Financial Holdings Inc. (LPLA) pays a dividend with a yield of 0.32%. This makes it attractive for income-focused investors.

LPL Financial Holdings Inc. (LPLA) has a return on equity (ROE) of 42.3%. This is excellent, indicating efficient use of shareholder capital.

Industry Metrics

LPL Financial Holdings Inc. (LPLA) has a net interest margin (NIM) of -2.1%. NIM has been under pressure due to interest rate environment.

LPL Financial Holdings Inc. (LPLA) has an efficiency ratio of 13.7%. This is excellent, indicating strong cost control.

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