LPL Financial HoldingsLPLA -1.70%86 ROA % is 7.64% as of Mar. 2026, which is 3% below its 10-year median of 7.85. 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 816 Capital Markets companies, LPL Financial Holdings ranks better than 75% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. LPL Financial Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,426 Mil.
LPL Financial Holdings's average Total Assets over the quarter that ended in Mar. 2026 was $18,664 Mil. Therefore, LPL Financial Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 7.64%.
The historical rank and industry rank for LPL Financial Holdings's ROA % or its related term are showing as below:
LPLA'
s ROA % Range Over the Past 10 Years
Min: 4.1 Med: 7.85 Max: 10.73
Current: 5.19
During the past 13 years, LPL Financial Holdings's highest ROA % was 10.73%. The lowest was 4.10%. And the median was 7.85%.
LPLA's ROA % is ranked better than 75% of 816
companies
in the Capital Markets industry
Industry Median: 1.5
vs LPLA: 5.19
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, LPL Financial Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where LPL Financial Holdings's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
LPL Financial Holdings (LPLA) has a ROA % of 7.64% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on LPL Financial Holdings and its competitors. This is near median its historical median of 7.85. Over the past decade, LPL Financial Holdings' ROA % has ranged from 4.10 to 10.73. According to the industry distribution chart, LPL Financial Holdings ranks #204 out of 816 companies in the Capital Markets industry, placing it in the top 25%.
Is LPL Financial Holdings' ROA % too high?
LPL Financial Holdings' current ROA % of 7.64% is near median its 10-year median of 7.85. Over the past 10 years, this metric has ranged from a low of 4.10 to a high of 10.73. The Capital Markets industry median ROA % is 1.50. LPL Financial Holdings' value of 7.64% is 409.3% above this industry median. Based on the distribution chart, LPL Financial Holdings ranks #204 out of 816 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. 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' ROA % compare to TW and IREN?
According to the Capital Markets industry distribution chart, LPL Financial Holdings ranks #204 out of 816 companies for ROA %. This places LPL Financial Holdings in the top 25% of its industry — outperforming the majority of peers. The industry median ROA % is 1.50. LPL Financial Holdings' value of 7.64% is 409.3% above this benchmark. Historically, LPL Financial Holdings' own ROA % has ranged from 4.10 to 10.73 over the past decade. While the company's 10-year median is 7.85 vs. the industry median of 1.50, LPL Financial Holdings has consistently been above 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 ROA % for a Capital Markets company?
The median ROA % among Capital Markets companies is 1.50, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. LPL Financial Holdings's current ROA % of 7.64% is 409.3% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on LPL Financial Holdings and its competitors. For the Capital Markets industry, the median ROA % is 1.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LPL Financial Holdings's current ROA % is 7.64%, which is near median its own 10-year median of 7.85. 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 $277.33 — trading 39.9% below its estimated fair value. The current ROA % is 7.64%, which is near median its 10-year median of 7.85 and 409.3% above the Capital Markets industry median of 1.50. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For LPL Financial Holdings (LPLA), the current ROA % is 7.64% 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 $277.33 is trading 39.9% below its estimated GF Value™ of $461.58.
GuruFocus considers LPL Financial Holdings to be Significantly Undervalued.
Key valuation signals for LPLA:
ROA %: 7.64% (near median its 10-year median of 7.85)
GF Value™: $461.58 vs. price of $277.33 (39.9% below fair value)
Industry Position: 409.3% above the Capital Markets median (#204 of 816)
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.
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