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LPL Financial Holdings Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LPL Financial Holdings has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for LPL Financial Holdings's Piotroski F-Score or its related term are showing as below:

LPLA' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 6

During the past 13 years, the highest Piotroski F-Score of LPL Financial Holdings was 9. The lowest was 3. And the median was 6.


LPL Financial Holdings Piotroski F-Score Historical Data

The historical data trend for LPL Financial Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LPL Financial Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 8.00 7.00 6.00 5.00

LPL Financial Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 6.00 5.00 6.00 6.00

Competitive Comparison

For the Capital Markets subindustry, LPL Financial Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

LPL Financial Holdings Piotroski F-Score Distribution

For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where LPL Financial Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 103.064 + 108.081 + 133.744 + 160.545 = $505 Mil.
Cash Flow from Operations was 258.404 + 253.464 + -75.117 + 72.681 = $509 Mil.
Revenue was 604.04 + 615.542 + 641.748 + 682.348 = $2,544 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(7220.016 + 7555.806 + 7991.6 + 7773.331 + 7736.486) / 5 = $7655.4478 Mil.
Total Assets at the begining of this year (Jun21) was $7,220 Mil.
Long-Term Debt & Capital Lease Obligation was $2,959 Mil.
Total Assets was $7,736 Mil.
Total Liabilities was $5,892 Mil.
Net Income was 103.789 + 111.548 + 129.62 + 119.101 = $464 Mil.

Revenue was 480.522 + 508.803 + 554.295 + 576.426 = $2,120 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(5905.733 + 6090.727 + 6596.162 + 6615.411 + 7220.016) / 5 = $6485.6098 Mil.
Total Assets at the begining of last year (Jun20) was $5,906 Mil.
Long-Term Debt & Capital Lease Obligation was $2,967 Mil.
Total Assets was $7,220 Mil.
Total Liabilities was $5,665 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LPL Financial Holdings's current Net Income (TTM) was 505. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LPL Financial Holdings's current Cash Flow from Operations (TTM) was 509. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=505.434/7220.016
=0.07000455

ROA (Last Year)=Net Income/Total Assets (Jun20)
=464.058/5905.733
=0.07857754

LPL Financial Holdings's return on assets of this year was 0.07000455. LPL Financial Holdings's return on assets of last year was 0.07857754. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

LPL Financial Holdings's current Net Income (TTM) was 505. LPL Financial Holdings's current Cash Flow from Operations (TTM) was 509. ==> 509 > 505 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=2958.51/7655.4478
=0.38645812

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=2966.896/6485.6098
=0.45745829

LPL Financial Holdings's gearing of this year was 0.38645812. LPL Financial Holdings's gearing of last year was 0.45745829. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jun22)=Total Assets/Total Liabilities
=7736.486/5892.426
=1.31295429

Current Ratio (Last Year: Jun21)=Total Assets/Total Liabilities
=7220.016/5665.104
=1.27447192

LPL Financial Holdings's current ratio of this year was 1.31295429. LPL Financial Holdings's current ratio of last year was 1.27447192. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

LPL Financial Holdings's number of shares in issue this year was 81.41. LPL Financial Holdings's number of shares in issue last year was 81.728. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=505.434/2543.678
=0.19870204

Net Margin (Last Year: TTM)=Net Income/Revenue
=464.058/2120.046
=0.21889053

LPL Financial Holdings's net margin of this year was 0.19870204. LPL Financial Holdings's net margin of last year was 0.21889053. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=2543.678/7220.016
=0.35230919

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=2120.046/5905.733
=0.35898101

LPL Financial Holdings's asset turnover of this year was 0.35230919. LPL Financial Holdings's asset turnover of last year was 0.35898101. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+0+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LPL Financial Holdings has an F-score of 6 indicating the company's financial situation is typical for a stable company.

LPL Financial Holdings  (NAS:LPLA) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


LPL Financial Holdings Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of LPL Financial Holdings's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


LPL Financial Holdings Business Description

LPL Financial Holdings logo
Traded in Other Exchanges
Address
4707 Executive Drive, San Diego, CA, USA, 92121
LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. The company also provides financial advisors licensed with insurance companies customized clearing services, advisory platforms, and technology solutions. LPL provides a range of services through its subsidiaries. Private Trust supplies trust administration, investment management oversight, and custodial services for estates and families; Independent Advisers Group offers investment advisory solutions to insurance companies; and LPL Insurance Associates operates as a brokerage general agency that offers life, long-term care, and disability insurance sales and services.
Executives
Sethi Kabir officer: Managing Director C/O LPL FINANCIAL 4707 EXECUTIVE DRIVE SAN DIEGO CA 92121
Gates Greg officer: Managing Director C/O LPL FINANCIAL 4707 EXECUTIVE DRIVE SAN DIEGO CA 92121
Simonich Brent officer: EVP, CAO and Treasurer C/O E*TRADE FINANCIAL CORP. 11 TIMES SQUARE, 32ND FLOOR NEW YORK NY 10036-9992
Fandrey Edward officer: Managing Director C/O LPL FINANCIAL 4707 EXECUTIVE DRIVE SAN DIEGO CA 92121
Bernard Edward C director T ROWE PRICE GROUP INC 100 E PRATT ST BALTIMORE MD 21202
Enyedi Matthew officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Thomas Corey E. director C/O RAPID7, INC. 100 SUMMER STREET BOSTON MA 02110
Semerjian Dayton officer: Managing Director 600 NICKERSON RD. MARLBORO MA 01752
Steinmeier Richard officer: Managing Director C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Mnookin Allison director C/O INTUIT 150 CAMBRIDGE PARK DRIVE CAMBRIDGE MA 02140
Seese Scott officer: MD, Chief Information Officer C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Glavin William Francis Jr director 6803 SOUTH TUCSON WAY CENTENNIAL CO 80112
Hellman Marco director BLACKBAUD INC 2000 DANIEL ISLAND DRIVE CHARLESTON SC 29492
Calder Tracy officer: MD, Deputy Chief Risk Officer C/O LPL FINANCIAL HOLDINGS, INC. 75 STATE STREET, 22ND FLOOR BOSTON MA 02109
Dinh Viet D director GEORGETOWN UNIVERSITY LAW CENTER 600 NEW JERSEY AVENUE NW WASHINGTON DC 20001

LPL Financial Holdings Headlines

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