Lpl Financial Profitability Analysis

LPLA
 Stock
  

USD 224.39  7.56  3.26%   

For Lpl Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lpl Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lpl Financial Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lpl Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lpl Financial Holdings over time as well as its relative position and ranking within its peers. Additionally, see Stocks Correlation.
  
The current year Return on Sales is expected to grow to 0.11, whereas Price to Sales Ratio is forecasted to decline to 1.53. The current year Income Tax Expense is expected to grow to about 148.8 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to about 314.6 K.

Lpl Financial Revenues

6.84 Billion

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.
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.

Lpl Financial Holdings Price to Book vs. Z Score Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lpl Financial's current stock value. Our valuation model uses many indicators to compare Lpl Financial value to that of its competitors to determine the firm's financial worth.
Lpl Financial Holdings is currently regarded as number one stock in z score category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about  2.42  of Price to Book per Z Score. As of August 19, 2022, Price to Book Value is expected to decline to 6.97. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lpl Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lpl Financial's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lpl Financial's earnings, one of the primary drivers of an investment's value.

Lpl Financial Price to Book vs. Z Score

Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Lpl Financial 
Z Score 
 = 
Sum Of  
 
5 Factors 
4.6
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Lpl Financial 
P/B 
 = 
MV Per Share 
BV Per Share 
11.12 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Lpl Financial Price to Book Comparison

Lpl Financial is currently under evaluation in price to book category among related companies.

Lpl Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lpl Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lpl Financial will eventually generate negative long term returns. The profitability progress is the general direction of Lpl Financial's change in net profit over the period of time. It can combine multiple indicators of Lpl Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income362.2 K314.6 K
Consolidated Income459.9 M411.2 M
Net Income459.9 M411.2 M
Net Income Common Stock459.9 M411.2 M
Operating Income730.1 M682.1 M
Income Tax Expense141.5 M148.8 M
Net Income Per Employee77.9 K68.5 K

Lpl Financial Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Lpl Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Lpl Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Lpl Financial's important profitability drivers and their relationship over time.

Lpl Financial Profitability Trends

Lpl Financial profitability trend refers to the progression of profit or loss within a business. An upward trend means that Lpl Financial's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Lpl Financial's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Lpl Financial Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Lpl Financial different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Lpl Financial in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Lpl Financial's future profitability.

Use Lpl Financial in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lpl Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lpl Financial will appreciate offsetting losses from the drop in the long position's value.

Lpl Financial Pair Trading

Lpl Financial Holdings Pair Trading Analysis

The ability to find closely correlated positions to Lpl Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lpl Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lpl Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lpl Financial Holdings to buy it.
The correlation of Lpl Financial is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lpl Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lpl Financial Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lpl Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Lpl Financial position

In addition to having Lpl Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Air
Air Theme
Companies specializing in air services and air delivery. The Air theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Air Theme or any other thematic opportunities.
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Additionally, see Stocks Correlation. 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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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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To fully project Lpl Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lpl Financial Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Lpl Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Lpl Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lpl Financial investors may work on each financial statement separately, they are all related. The changes in Lpl Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lpl Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.