LPL Financial Holdings Inc
NASDAQ:LPLA

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LPL Financial Holdings Inc
NASDAQ:LPLA
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Price: 283.31 USD -9.41% Market Closed
Market Cap: 21.1B USD

Operating Margin
LPL Financial Holdings Inc

14%
Current
14%
Average
24.7%
Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
14%
=
Operating Profit
1.7B
/
Revenue
12.4B

Operating Margin Across Competitors

LPL Financial Holdings Inc
Glance View

Economic Moat
Narrow
Market Cap
21.2B USD
Industry
Financial Services

LPL Financial Holdings Inc. stands as a significant player in the financial services sector, offering a platform where financial advisors can thrive independently while benefiting from comprehensive support. Founded in 1989, LPL identified a niche within the financial advisory industry for advisors seeking autonomy without the constraints of large brokerage firms. Based in San Diego, the company harnesses its extensive network of independent financial advisors across the United States, providing them with essential tools, research, and compliance services. By doing so, LPL empowers a wide range of finance professionals to deliver personalized investment and financial planning services to their clients. This has positioned LPL as a critical intermediary, shaping how advisors connect with their clients in a dynamic market environment. The company's business model thrives by generating revenue from three primary streams — commission-based transactions, advisory fees, and trailing commissions. Advisors use LPL’s platform to execute trades, for which LPL collects transaction fees. Additionally, when advisors provide ongoing financial planning, the client pays an advisory fee, a portion of which LPL retains. The company further benefits from trailing commissions, which are ongoing fees from mutual fund investments and insurance products. By integrating technology and human expertise, LPL Financial continues to fortify its position by offering scalable solutions that enhance the capabilities of financial advisors. In doing so, LPL solidly aligns its financial success with the ability of advisors to grow their practices, fostering a symbiotic relationship that drives both parties forward in a competitive industry.

LPLA Intrinsic Value
460.55 USD
Undervaluation 38%
Intrinsic Value
Price
What is Operating Margin?

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin
14%
=
Operating Profit
1.7B
/
Revenue
12.4B
What is the Operating Margin of LPL Financial Holdings Inc?

Based on LPL Financial Holdings Inc's most recent financial statements, the company has Operating Margin of 14%.

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