Fundamentals snapshot
LPLA · NMS · Financial Services · Capital Markets
Current price
$327.56
52-week range
$260.15 - $400.16
Market cap
$25.79B
One-glance verdict
We don't put a cash-flow fair value on banks and insurers. For these companies the reported 'cash flow' is really just money moving between loans, deposits and trades — not the leftover profit the owners could actually pocket — so the usual method would print a misleading number.
Balance sheet
Net debt $4.95B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
LPL Financial Holdings Inc. helps independent financial advisors and institutions offer investment and brokerage services to their clients, essentially providing the tools and platform for advisors to manage people's money. Their main income comes from fees charged for these services and products, which is important because it means their earnings are more predictable than businesses that rely on one-time sales. This model creates recurring revenue (income that comes in regularly), which is good for stability.
LPL Financial Holdings Inc. was founded in 1989 through the merger of two smaller firms, Linsco and Private Ledger. The company's vision was to support financial advisors with the tools and solutions they need to best serve their clients. Over the years, LPL has grown significantly, becoming the largest independent broker-dealer in the United States. Key milestones include its initial public offering in 2010 and strategic acquisitions, such as the purchase of National Planning Holdings' independent broker-dealer network in 2017 and Waddell & Reed's wealth management business in 2021. LPL has also expanded its technology offerings through acquisitions like AdvisoryWorld. The company's growth has led to its inclusion in the Fortune 500 list.
LPL Financial acts as a crucial support system for independent financial advisors and institutions across the United States. Think of them as the behind-the-scenes infrastructure that allows financial advisors to focus on their clients. They provide a comprehensive platform that includes technology, brokerage services, investment advisory support, and compliance assistance. This allows advisors to offer personalized financial advice and manage their clients' investments without being tied to a single company's product offerings.
This is the core of LPL's business, where they provide the essential services that financial advisors need to operate. This includes offering a wide array of investment products like mutual funds, stocks, bonds, and annuities, which advisors can then offer to their clients. LPL also provides the platforms and tools for advisors to manage these investments, whether through traditional brokerage accounts or fee-based advisory services. Essentially, LPL acts as the custodian and administrator for these client accounts, handling the trading, clearing, and record-keeping so advisors can concentrate on providing financial guidance.
LPL Financial invests heavily in technology to help advisors run their businesses more efficiently. This includes providing tools for tasks like generating client proposals, analyzing investment portfolios, and modeling financial scenarios. They also offer practice management support, which can include consulting, training, and resources to help advisors grow their client base and manage their operations effectively. This segment is about empowering advisors with the digital and strategic tools needed to succeed in a competitive landscape.
This part of LPL's business focuses on serving larger clients, such as banks, credit unions, and other financial institutions, as well as providing specialized services for retirement plans. For institutions, LPL offers a way for them to provide investment and brokerage services to their own customers without having to build the entire infrastructure themselves. For retirement plans, LPL provides the necessary services for advisors to help plan sponsors manage and administer retirement accounts for their employees.
LPL Financial's current strategy centers on strengthening its position as a leading wealth management platform by focusing on advisor recruitment and retention, ensuring they attract and keep top talent. They are also prioritizing the expansion of their advisory and managed solutions, aiming to offer a broader range of investment options to clients. Furthermore, LPL is committed to modernizing its technology and service offerings to enhance the advisor and client experience. Strategic acquisitions also remain a key part of their plan to drive growth and expand their capabilities.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
For a bank or insurer, the "free cash flow" shown on its statements is mostly money flowing through loans, deposits and trades — not the leftover profit the owners could actually keep, which is what this kind of valuation needs. Running that through the usual method would spit out a meaningless number, so we leave the cash-flow fair value out here rather than show you something misleading.
Is it drowning in debt?
Net debt $4.9B. Interest coverage 3.8x.
LPL Financial Holdings Inc.'s profit covers its interest bill about 3.8 times over.
Total debt $7.79B Interest coverage 3.85x This is the baseline the peer rows are being compared against.
Total debt $178.91M Interest coverage 229.88x +5,872% vs LPLA Carries about 59.7x more debt cushion than LPLA.
Total debt $150.34M Interest coverage 435.41x +11,211% vs LPLA Carries about 113.1x more debt cushion than LPLA.
Total debt $1.54B Interest coverage 13.29x +245% vs LPLA Carries about 3.5x more debt cushion than LPLA.
Total debt $20.53B Interest coverage 6.23x +62% vs LPLA Carries about 1.6x more debt cushion than LPLA.
Total debt $3.03B Interest coverage 3.75x -3% vs LPLA Has roughly the same debt cushion as LPLA.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know