LPLA

Financial Services

LPL Financial Holdings Inc. · Financial - Capital Markets · $23B

UQS Score — Balanced Preset
59.0
Good

LPL Financial Holdings Inc. scores 59.0/100 using the Balanced preset.

UQS vs Financial Services Sector
LPLA
59.0
Sector avg
39.7
Quality
Weak
Moat
Neutral
Growth
Strong
Risk
Neutral
Valuation
Attractive

What is LPL Financial Holdings Inc.?

LPL Financial Holdings is one of the largest independent broker-dealer networks in the United States, serving independent financial advisors and institution-based advisors with a broad suite of brokerage and investment advisory tools.

The company generates revenue by providing advisors with an integrated platform covering brokerage execution, advisory services, and practice-management technology. Advisors use LPL's infrastructure to offer clients products ranging from mutual funds and equities to annuities and alternative investments. LPL also earns fees through custodial services, money market programs, and retirement plan solutions, positioning itself as the operational backbone for thousands of independent practices across the country.

LPL Financial Holdings was incorporated in 2010 and is headquartered in San Diego, California.

  • Brokerage services: equities, fixed income, annuities, and mutual funds
  • Advisory platforms with access to ETFs, stocks, and institutional managers
  • Retirement plan solutions for commission- and fee-based advisors
  • Practice-management technology including portfolio modeling and analytics
  • Trust, custodial, and insurance brokerage general agency services

Is LPLA a Good Stock to Buy?

UQS Score rates LPLA as Good overall, reflecting a balanced but nuanced profile across its five pillars.

The Growth pillar stands out as a relative bright spot, supported by LPL's continued expansion of its advisor network and recurring fee-based revenue. Valuation is rated Attractive, suggesting the market may not be fully pricing in the company's growth trajectory relative to peers in the financial services sector.

The Quality pillar is rated Weak, pointing to areas such as capital efficiency or earnings consistency that trail sector benchmarks. The Moat and Risk pillars both sit at Neutral, indicating a competitive position and risk profile that are neither exceptional nor alarming.

See the exact pillar breakdown and underlying financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does LPLA pay dividends?

Yes — LPL Financial Holdings Inc. pays a dividend.

LPL Financial pays a regular dividend, which is relatively uncommon among growth-oriented financial services firms. This reflects management's willingness to return capital to shareholders alongside reinvesting in platform expansion. Investors seeking income alongside growth exposure may find this combination relevant, though dividend sustainability should always be weighed against the company's broader capital allocation priorities.

When does LPLA report earnings?

LPL Financial reports earnings on a quarterly cadence, consistent with standard practice for US-listed financial services companies.

LPL's recent results have generally reflected the ongoing shift toward fee-based advisory models and advisor network growth. Revenue trends have been influenced by interest rate dynamics and asset levels on the platform, both of which can create quarter-to-quarter variability.

For the most recent quarter's results and upcoming reporting dates, visit LPL Financial's investor relations page directly.

LPLA Price History

+125.4% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in LPL Financial Holdings Inc.?

$
Today it would be worth
$23,601
That's a +136% total return, or +18.7% annualized.

Based on LPL Financial Holdings Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

LPLA Long-term Outlook

LPL Financial's fundamental outlook is shaped by its Good Growth pillar rating, which points to continued momentum in advisor recruitment and fee-based asset accumulation. The Attractive Valuation label suggests room for re-rating if growth execution remains consistent. However, the Weak Quality pillar introduces uncertainty around how efficiently that growth translates into durable returns. Neutral Risk indicates the company faces manageable but real headwinds, including regulatory changes and interest rate sensitivity inherent to the broker-dealer model.

Growth drivers

  • Ongoing recruitment of independent advisors expanding the platform's asset base
  • Secular shift from commission-based to fee-based advisory models
  • Technology investment deepening advisor retention and practice productivity

Key risks

  • Interest rate sensitivity affecting cash sweep and money market revenues
  • Regulatory changes targeting broker-dealer and advisory fee structures
  • Execution risk in integrating acquired advisor practices at scale

LPLA vs Peers

LPL Financial operates in a competitive financial services landscape alongside firms with distinct business models and geographic footprints.

TWLPLA scores lower
Tradeweb Markets Inc.

Tradeweb focuses on electronic fixed-income and derivatives trading infrastructure, serving institutional clients rather than independent retail advisors.

NMRLPLA scores higher
Nomura Holdings, Inc.

Nomura is a global Japanese investment bank with broad capital markets and wealth management operations, competing across institutional and retail channels internationally.

FUTULPLA scores lower
Futu Holdings Limited

Futu operates a digital brokerage platform primarily targeting retail investors in Asia, representing a technology-first model distinct from LPL's advisor-centric approach.

Frequently Asked Questions

What does LPL Financial do?

LPL Financial provides independent financial advisors and institution-based advisors with an integrated platform of brokerage and investment advisory services. It acts as the operational and technology backbone for thousands of advisor practices, offering everything from trade execution to portfolio analytics and retirement plan solutions.

Does LPLA pay dividends?

Yes, LPL Financial pays a regular dividend. This is notable for a company that also invests heavily in platform growth and advisor recruitment. Investors should review the current dividend rate and payout history on LPL's investor relations page for the most up-to-date figures.

When does LPLA report earnings?

LPL Financial follows a standard quarterly earnings cadence for US-listed companies. Specific reporting dates are not covered by our data source, so we recommend checking LPL Financial's investor relations page or a financial calendar service for confirmed dates.

Is LPLA a good stock to buy?

UQS Score rates LPLA as Good overall. The Growth and Valuation pillars are relative strengths, while the Quality pillar is rated Weak. Whether LPLA fits your portfolio depends on your risk tolerance and investment goals. The full pillar breakdown is available to UQS Pro members.

Is LPLA overvalued?

The UQS Valuation pillar for LPLA is rated Attractive, suggesting the stock may be reasonably priced relative to its fundamentals and sector peers. Valuation assessments can shift with market conditions, so reviewing the complete analysis is worthwhile before drawing conclusions.

How does LPLA compare to its competitors?

LPL Financial's advisor-centric independent broker-dealer model differs meaningfully from peers like Tradeweb, which serves institutional fixed-income markets, and Futu, which targets retail investors digitally in Asia. Nomura competes across broader global capital markets. Each operates with a distinct client base and revenue structure.

What is LPLA's market cap bracket?

LPLA is classified as a large-cap stock, reflecting its scale as one of the largest independent broker-dealer networks in the United States. Large-cap companies typically offer greater liquidity and more established business models compared to smaller peers.

Who founded LPL Financial?

LPL Financial's roots trace back to the merger of Linsco and Private Ledger in 1989, forming the original LPL entity. The current holding company structure was established in 2010. Full founding history is publicly available through the company's official communications and investor relations materials.

Is LPLA a long-term quality indicator?

As a long-term quality indicator, LPLA presents a mixed picture. The Growth pillar is rated Good and Valuation is Attractive, which are constructive signals. However, the Weak Quality pillar suggests some caution around capital efficiency over time. Long-term investors should weigh these factors using the full UQS analysis available to Pro members.

What is the main competitive advantage of LPL Financial?

LPL's primary competitive advantage lies in the scale and integration of its advisor platform. By providing technology, compliance support, and product access under one roof, it creates meaningful switching costs for advisors. The UQS Moat pillar is rated Neutral, indicating this advantage exists but faces ongoing competitive pressure.

What sector does LPLA belong to?

LPLA operates in the Financial Services sector, specifically within the broker-dealer and investment advisory segment. This sector is sensitive to interest rate cycles, regulatory changes, and equity market performance, all of which can influence LPL's revenue and profitability.

Is LPLA a growth stock or value stock?

LPLA shows characteristics of both. The UQS Growth pillar is rated Good, reflecting expansion in its advisor network and fee-based assets. The Valuation pillar is rated Attractive, which leans toward value territory. This combination may appeal to investors looking for growth at a reasonable price within financial services.

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Pro Analysis

LPLA — Score History

50556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 17 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202658.932.351.081.955.788.7-0.1
May 21, 202659.032.351.081.955.789.3+0.6
May 18, 202658.432.351.081.955.785.7-0.1
May 17, 202658.532.351.081.955.785.9+0.1
May 14, 202658.432.351.081.955.785.7+1.3
May 7, 202657.134.351.081.947.581.6-0.1
May 4, 202657.234.351.081.947.582.1+1.3
May 3, 202655.934.351.076.047.581.80.0
Apr 26, 202655.934.351.076.047.581.5-0.1
Apr 18, 202656.034.351.076.047.582.2-1.6

LPLA — Pillar Breakdown

Quality

32.3/100 (25%)

LPL Financial Holdings Inc. currently shows below-average quality metrics, suggesting challenges with profitability.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Cash GenerationWeak

Free cash flow relative to market value.

Growth

81.9/100 (20%)

LPL Financial Holdings Inc. is growing rapidly with strong revenue and earnings expansion.

Recent Revenue TrendStrong

Revenue trajectory over the last twelve months.

3Y Revenue CAGRStrong

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookStrong

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

55.7/100 (15%)

LPL Financial Holdings Inc. maintains a reasonable risk profile with manageable debt levels.

Debt/EquityWeak

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

89.2/100 (15%)

LPL Financial Holdings Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

51/100 (25%)

LPL Financial Holdings Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for LPLA.

Score Composition

Quality
32.3×25%8.1
Growth
81.9×20%16.4
Risk
55.7×15%8.4
Valuation
89.2×15%13.4
Moat
51.0×25%12.8
Total
59.0Good

Financial Data

More Stock Analysis

How is the LPLA UQS Score Calculated?

The UQS (Unified Quality Score) for LPL Financial Holdings Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses LPL Financial Holdings Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether LPL Financial Holdings Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.