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LPL Financial Holdings has the Financial Strength Rank of 5.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
LPL Financial Holdings's Interest Coverage for the quarter that ended in Jun. 2026 was 6.08.
LPL Financial Holdings's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.37.
As of today, LPL Financial Holdings's Altman Z-Score is 3.28.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
LPL Financial Holdings has the Financial Strength Rank of 5.
LPL Financial Holdings Financial Strength Related Terms
LPLA vs TW, CRCL, FUTU: Financial Strength Comparison
For the Capital Markets subindustry, LPL Financial Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's Financial Strength distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
LPL Financial Holdings has a Z-score of 3.28, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.28 is strong.
* 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.
LPL Financial Holdings (LPLA) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on LPL Financial Holdings and its competitors. This is 25% above median its historical median of 4.00. Over the past decade, LPL Financial Holdings' Financial Strength has ranged from 3.00 to 6.00.
Is LPL Financial Holdings' Financial Strength too high?
LPL Financial Holdings' current Financial Strength of 5 is 25% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, LPL Financial Holdings has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does LPL Financial Holdings' Financial Strength compare to TW and CRCL?
LPL Financial Holdings' Financial Strength of 5 can be compared against companies in the Capital Markets industry. Historically, LPL Financial Holdings' own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Capital Markets company?
A good Financial Strength depends on the Capital Markets industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on LPL Financial Holdings and its competitors. LPL Financial Holdings's current Financial Strength is 5, which is 25% above median its own 10-year median of 4.00. 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 Modestly Undervalued. The stock's GF Value™ is $479.51, compared to a current price of $361.21 — trading 24.7% below its estimated fair value. The current Financial Strength is 5, which is 25% above median its 10-year median of 4.00. LPL Financial Holdings' overall GF Score™ is 91/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For LPL Financial Holdings (LPLA), the current Financial Strength is 5 as of Jun. 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 $361.21 is trading 24.7% below its estimated GF Value™ of $479.51.
GuruFocus considers LPL Financial Holdings to be Modestly Undervalued.
Key valuation signals for LPLA:
Financial Strength: 5 (25% above median its 10-year median of 4.00)
GF Value™: $479.51 vs. price of $361.21 (24.7% below fair value)
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.
91GF Score
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