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LPL Financial Holdings

LPLA
40
Financial - Capital Markets · Financial Services
Price
$320.96
-6.60 (-2.01%)
Market Cap
$25.27B
Exchange
NASDAQ
Winston Score
40
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 18, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
13/30
Growth
Strong
14/20
Cash Flow
Weak
0/10
Stability
Mixed
3/10
Valuation
Strong
7/10
Ownership
Weak
2/15
Dividends
Weak
1/5

40 of 100 counted points = Winston Score 40.

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Share count falling — buybacks

−3.3% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 81.7M (2021) → 79.1M (2025)

§Winston Score History

The full picture

LPL Financial is one of the largest independent broker-dealer networks in the United States. It provides a platform that helps independent financial advisors run their businesses — giving them tools, technology, and support to manage client investments. The main customers are financial advisors who want to work independently rather than for a big bank or wirehouse like Merrill Lynch or Morgan Stanley.

LPL makes money by taking a cut of the assets its advisors manage, earning fees on advisory accounts, and collecting interest and commissions on financial products. It operates almost entirely in the U.S. and supports over 23,000 financial advisors overseeing roughly $1.5 trillion in client assets, making it the largest independent broker-dealer in the country by advisor count. Its main growth driver is recruiting more advisors away from traditional firms, but rising interest rates and market downturns can quickly shrink asset values and reduce the fees LPL collects.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+35.2% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+38.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

0.5%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.5B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

LPL Financial Holdings grew revenue 35% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
155.3%
Premium pricing power — 155.3% gross margin
Profit after running costs
Operating Margin
-12.5%
Losing money on operations — -12.5%
Return on the money invested
ROCE
11.4%
Below par — 11.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+38.8%
Fast-growing sales (+38.8% YoY)
Profit growth
EPS YoY
-14.5%
Earnings shrinking (-14.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
7/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
-57%
Weak — only -57% of profit becomes cash
Spare cash per sale
FCF Margin
-6.1%
Burning cash (-6.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
1.33
Elevated debt (1.33)
Covers its interest
Interest Cover
1.58x
Dangerous — barely covers interest (1.6x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit
P/E Ratio (TTM)
25.5x
Growth-priced — P/E 25.5

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+15.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (25.5 → 10.5)

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Dividends

Dividend
Dividend Yield
0.38%
Small dividend — 0.38% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+0.0%
Dividend flat
Payout Ratio
10%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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