Lpl Financial Beneish M Score

LPLA
 Stock
  

USD 184.48  1.87  1.00%   

This module uses fundamental data of Lpl Financial to approximate the value of its Beneish M Score. Lpl Financial M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see Lpl Financial Piotroski F Score and Lpl Financial Altman Z Score analysis.
  
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Lpl Financial Issuance Repayment of Debt Securities is projected to based on the last few years of reporting. The past year's Issuance Repayment of Debt Securities was at 436.14 Million. The current year Long Term Debt to Equity is expected to grow to 1.72, whereas Total Debt is forecasted to decline to about 2.7 B. Lpl Financial Long Term Debt to Equity is projected to increase slightly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 1.68. The current year Calculated Tax Rate is expected to grow to 31.59, whereas Interest Coverage is forecasted to decline to 5.82.
At this time, it appears that Lpl Financial Holdings is an unlikely manipulator. The earnings manipulation may begin if Lpl Financial's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Lpl Financial executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Lpl Financial's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.57
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset Quality0.49Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.13Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.89Focus
Financial Leverage Condition1.02Focus

Lpl Financial Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Lpl Financial's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues6.8 B7.7 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense1.2 B1.4 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations483.7 M453.1 M
Notably Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion194.6 M230.7 M
Fairly Down
Increasing
Slightly volatile
Total Assets7.2 BB
Moderately Down
Increasing
Slightly volatile
Investments1.1 BB
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net559.4 M658.8 M
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables1.1 B1.3 B
Moderately Down
Increasing
Slightly volatile
Total Liabilities5.7 B6.3 B
Moderately Down
Increasing
Slightly volatile
Current Assets4.6 B4.3 B
Significantly Up
Increasing
Slightly volatile
Current LiabilitiesB2.5 B
Significantly Down
Increasing
Slightly volatile
Total Debt2.7 B2.8 B
Sufficiently Down
Increasing
Slightly volatile
Operating Income682.1 M730.1 M
Significantly Down
Increasing
Slightly volatile
Gross Margin0.360.318
Moderately Up
Increasing
Slightly volatile

Lpl Financial Holdings Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Lpl Financial's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Lpl Financial in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Lpl Financial's degree of accounting gimmicks and manipulations.

About Lpl Financial Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

194.55 Million

Share
Lpl Financial Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 230.69 Million

Lpl Financial Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Lpl Financial. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Trade and Non Trade Receivables769.42 M828.45 M910.43 M937.36 M1.26 B1.14 B
Revenues4.28 B5.19 B5.62 B5.87 B7.72 B6.84 B
Total Assets5.36 B5.48 B5.88 B6.6 B7.99 B7.18 B
Current Assets2.66 B2.74 B2.9 B3.36 B4.3 B4.64 B
Property Plant and Equipment Net412.68 M461.42 M635.52 M582.87 M658.84 M559.36 M
Depreciation Amortization and Accretion122.36 M147.91 M161.11 M177.09 M230.69 M194.55 M
Selling General and Administrative Expense842.26 M962.82 M1.02 B1.09 B1.36 B1.21 B
Total Liabilities4.39 B4.5 B4.86 B5.28 B6.32 B5.67 B
Current Liabilities1.84 B1.97 B2.2 B2.62 B2.49 B2.02 B
Total Debt2.49 B2.48 B2.65 B2.35 B2.81 B2.69 B
Operating Income494 M717.66 M874.99 M731.84 M730.14 M682.11 M
Net Cash Flow from Operations453.31 M581.58 M623.87 M789.94 M453.13 M483.71 M
Investments248.87 M341.09 M500 M630.04 M1.01 B1.09 B

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.
LPL 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. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California. Lpl Financial operates under Capital Markets classification in the United States and is traded on NASDAQ Exchange. It employs 6051000 people.

Lpl Financial Investors Sentiment

The influence of Lpl Financial's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Lpl Financial. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Lpl Financial Implied Volatility

    
  4.6  
Lpl Financial's implied volatility exposes the market's sentiment of Lpl Financial Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lpl Financial's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Lpl Financial stock will not fluctuate a lot when Lpl Financial's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Lpl Financial in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Lpl Financial's short interest history, or implied volatility extrapolated from Lpl Financial options trading.

Current Sentiment - LPLA

Lpl Financial Holdings Investor Sentiment

Most of Macroaxis users are now bullish on Lpl Financial Holdings. What is your trading attitude regarding investing in Lpl Financial Holdings? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Additionally, see Lpl Financial Piotroski F Score and Lpl Financial Altman Z Score analysis. Note that the Lpl Financial Holdings information on this page should be used as a complementary analysis to other Lpl Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Complementary Tools for Lpl Financial Stock analysis

When running Lpl Financial Holdings price analysis, check to measure Lpl Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lpl Financial is operating at the current time. Most of Lpl Financial's value examination focuses on studying past and present price action to predict the probability of Lpl Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Lpl Financial's price. Additionally, you may evaluate how the addition of Lpl Financial to your portfolios can decrease your overall portfolio volatility.
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Is Lpl Financial's industry 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 Financial 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 YOY
0.031
Market Capitalization
14.9 B
Quarterly Revenue Growth YOY
0.21
Return On Assets
0.0682
Return On Equity
0.29
The market value of Lpl Financial Holdings is measured differently than its book value, which is the value of Lpl Financial 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 Lpl Financial value 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.