Lpl Financial Holdings Stock Return On Equity

LPLA Stock  USD 366.07  3.87  1.07%   
LPL Financial Holdings fundamentals help investors to digest information that contributes to LPL Financial's financial success or failures. It also enables traders to predict the movement of LPL Stock. The fundamental analysis module provides a way to measure LPL Financial's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to LPL Financial stock.
Last ReportedProjected for Next Year
Return On Equity 0.36  0.18 
As of February 27, 2025, Return On Equity is expected to decline to 0.18.
  
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LPL Financial Holdings Company Return On Equity Analysis

LPL Financial's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

 = 

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current LPL Financial Return On Equity

    
  0.42  
Most of LPL Financial's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, LPL Financial Holdings is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

LPL Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for LPL Financial is extremely important. It helps to project a fair market value of LPL Stock properly, considering its historical fundamentals such as Return On Equity. Since LPL Financial's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of LPL Financial's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of LPL Financial's interrelated accounts and indicators.
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LPL Return On Equity Historical Pattern

Today, most investors in LPL Financial Stock are looking for potential investment opportunities by analyzing not only static indicators but also various LPL Financial's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of LPL Financial return on equity as a starting point in their analysis.
   LPL Financial Return On Equity   
       Timeline  
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition

LPL Total Stockholder Equity

Total Stockholder Equity

3.08 Billion

At present, LPL Financial's Total Stockholder Equity is projected to increase significantly based on the last few years of reporting.
Based on the latest financial disclosure, LPL Financial Holdings has a Return On Equity of 0.4226. This is 70.86% lower than that of the Capital Markets sector and 94.65% lower than that of the Financials industry. The return on equity for all United States stocks is notably lower than that of the firm.

LPL Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses LPL Financial's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of LPL Financial could also be used in its relative valuation, which is a method of valuing LPL Financial by comparing valuation metrics of similar companies.
0.42260.42960.39990.27380.2243100%
LPL Financial is currently under evaluation in return on equity category among its peers.

LPL Financial ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, LPL Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to LPL Financial's managers, analysts, and investors.
63.5%
Environmental
66.2%
Governance
68.8%
Social

LPL Fundamentals

Return On Equity0.42
JavaScript chart by amCharts 3.21.152011-12-312012-12-312013-12-312014-12-312015-12-312016-12-312017-12-312018-12-312019-12-312020-12-312021-12-312022-12-312023-12-312024-12-31200%400%600%800%
Return On Asset0.0893
Profit Margin0.09 %
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Operating Margin0.11 %
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Current Valuation31.75 B
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Shares Outstanding74.57 M
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Shares Owned By Insiders1.90 %
Shares Owned By Institutions96.54 %
Number Of Shares Shorted655.49 K
Price To Earning40.90 X
Price To Book9.22 X
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Price To Sales2.24 X
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Revenue12.39 B
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Gross Profit4.13 B
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EBITDA1.98 B
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Net Income1.06 B
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Cash And Equivalents1.22 B
Cash Per Share15.28 X
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Total Debt5.75 B
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Debt To Equity1.36 %
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Current Ratio7.94 X
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Book Value Per Share39.26 X
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Cash Flow From Operations277.59 M
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Short Ratio1.13 X
Earnings Per Share14.04 X
Price To Earnings To Growth1.44 X
Target Price413.2
Number Of Employees9 K
Beta0.87
Market Capitalization27.01 B
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Total Asset13.32 B
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Retained Earnings5.07 B
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Working Capital2.62 B
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Current Asset2.28 B
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Current Liabilities1.48 B
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Annual Yield0 %
Five Year Return1.14 %
Net Asset13.32 B
Last Dividend Paid1.2

About LPL Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze LPL Financial Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of LPL Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of LPL Financial Holdings based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether LPL Financial Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of LPL Financial's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lpl Financial Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lpl Financial Holdings Stock:
Check out LPL Financial Piotroski F Score and LPL Financial Altman Z Score analysis.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Investment Banking & Brokerage space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of LPL Financial. If investors know LPL will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about LPL Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.258
Dividend Share
1.2
Earnings Share
14.04
Revenue Per Share
161.746
Quarterly Revenue Growth
0.315
The market value of LPL Financial Holdings is measured differently than its book value, which is the value of LPL that is recorded on the company's balance sheet. Investors also form their own opinion of LPL Financial's value that differs from its market value or its book value, called intrinsic value, which is LPL Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because LPL Financial's market value can be influenced by many factors that don't directly affect LPL Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between LPL Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if LPL Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LPL Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.