LPL Financial HoldingsLPLA -3.41%86 Gross Margin % is 24.77% as of Mar. 2026, which is 6% below its 10-year median of 26.43. GuruFocus rates LPLA with a GF Score™ of 86/100 and a GF Value™ of $461.58 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 618 Capital Markets companies, LPL Financial Holdings ranks worse than 69.42% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
LPL Financial Holdings had a gross margin of 24.77% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
LPL Financial Holdings Gross Margin % Related Terms
LPL Financial Holdings Gross Margin % Historical Data
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The historical data trend for LPL Financial Holdings's Gross Margin % 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.
For the Capital Markets subindustry, LPL Financial Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
LPL Financial Holdings (LPLA) has a Gross Margin % of 24.77% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on LPL Financial Holdings and its competitors. This is near median its historical median of 26.43. Over the past decade, LPL Financial Holdings' Gross Margin % has ranged from 22.20 to 30.35. According to the industry distribution chart, LPL Financial Holdings ranks #429 out of 618 companies in the Capital Markets industry, placing it in the top 69.4%.
Is LPL Financial Holdings' Gross Margin % too high?
LPL Financial Holdings' current Gross Margin % of 24.77% is near median its 10-year median of 26.43. Over the past 10 years, this metric has ranged from a low of 22.20 to a high of 30.35. The Capital Markets industry median Gross Margin % is 48.29. LPL Financial Holdings' value of 24.77% is 48.7% below this industry median. Based on the distribution chart, LPL Financial Holdings ranks #429 out of 618 companies in the Capital Markets industry, which is below the industry midpoint. Overall, LPL Financial Holdings has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' Gross Margin % compare to TW and IREN?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #429 out of 618 companies for Gross Margin %. This places LPL Financial Holdings in the lower half of its industry. The industry median Gross Margin % is 48.29. LPL Financial Holdings' value of 24.77% is 48.7% below this benchmark. Historically, LPL Financial Holdings' own Gross Margin % has ranged from 22.20 to 30.35 over the past decade. While the company's 10-year median is 26.43 vs. the industry median of 48.29, LPL Financial Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Capital Markets company?
The median Gross Margin % among Capital Markets companies is 48.29, based on 618 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LPL Financial Holdings's current Gross Margin % of 24.77% is 48.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on LPL Financial Holdings and its competitors. For the Capital Markets industry, the median Gross Margin % is 48.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current Gross Margin % is 24.77%, which is near median its own 10-year median of 26.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LPL Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, LPL Financial Holdings (LPLA) is currently considered Significantly Undervalued. The stock's GF Value™ is $461.58, compared to a current price of $272.52 — trading 41% below its estimated fair value. The current Gross Margin % is 24.77%, which is near median its 10-year median of 26.43 and 48.7% below the Capital Markets industry median of 48.29. LPL Financial Holdings' overall GF Score™ is 86/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For LPL Financial Holdings (LPLA), the current Gross Margin % is 24.77% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is LPL Financial Holdings (LPLA) Overvalued in 2026?
Based on GuruFocus' analysis, LPL Financial Holdings stock appears to be undervalued.
The current stock price of $272.52 is trading 41% below its estimated GF Value™ of $461.58.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
Gross Margin %: 24.77% (near median its 10-year median of 26.43)
GF Value™: $461.58 vs. price of $272.52 (41% below fair value)
Industry Position: 48.7% below the Capital Markets median (#429 of 618)
No single metric tells the full story. See the LPLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LPL Financial is the largest US independent broker-dealer, with more than 32,000 financial advisors affiliated with its platform and roughly 11 million customer accounts at the end of 2025. The firm earns the bulk of its profit from interest income earned on client cash balances and from advisory fees and commissions tied to the $2.4 trillion in assets under management or advisory on its platform at year-end 2025. LPL specializes in providing turnkey wealth management services for affiliated independent advisors, but maintains a diverse array of affiliation modalities, running the gamut from more traditional employee models to a pure RIA custody approach. It earns tuck-in revenue from recordkeeping fees and the provision of software tools and services to its advisor base.
86GF Score
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