LPL Financial Holdings Inc. Common Stock (LPLA)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 20.9% demonstrating efficient capital deployment
• Revenue growth of 40.4% demonstrates strong top-line momentum
• Established organization with 10,099 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($128) with negative 151% margin of safety—limited downside protection

AI Analysis

LPL Financial Holdings Inc. Common Stock is a mid-cap financial services company valued at $25.8 billion. The business generates $16.6 billion in annual revenue with a 1.8% net margin. From a quality standpoint, LPL shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and Altman Z-Score of 2.3 in the grey zone. On valuation, the stock is trading at a premium 29.4x earnings, with trades far above its Graham Number ($128) with no margin of safety. Growth dynamics show revenue growing at 40.4% and profit growth of 11.1%. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

LPL's 40% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer