| 2014 | 2015 | 2016 | 2018 | 2019 (projected) | LPL Financial Interest Expense | 51,538,000 | 59,136,000 | 96,478,000 | 110,949,700 | 107,725,947 | LPL Financial Gross Profit | 4,324,647,000 | 4,222,538,000 | 3,994,874,000 | 3,595,386,600 | 1,440,000,000 |
Make it or break it for LPL Financial in 2019
 | By Vlad Skutelnik | Macroaxis Story |
Today article will go over LPL Financial. I will evaluate why we are still optimistic in anticipation of a recovery. LPL Financial Holdings moves indifferently to market moves. The returns on investing in LPL Financial and the market returns of the last few months appear uncorrelated. The appearance of strong basic indicators of the company suggests short term price swing for investors of the company. We found thirty-eight available fundamentals for LPL Financial which can be compared to its peers in the industry. To make sure the equity is not overpriced, please verify all LPL Financial Holdings fundamentals including its EBITDA, Current Ratio and the relationship between Price to Sales and Cash per Share . Given that LPL Financial Holdings has Price to Earning of 15.88X, we recommend you check LPL Financial last-minute market performance to make sure the company can sustain itself next year. Use LPL Financial to enhance returns of your portfolios. The stock experiences large bullish trend. Check odds of LPL Financial to be traded at $85.72 in 30 days.
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Reviewed by Rifka Kats
LPL Financial average rating is Sell from 8 analysts. As of 23 of February LPL Financial secures Mean Deviation of 1.33 and Risk Adjusted Performance of 0.5517. In respect to Fundamental Indicators, Macroaxis technical analysis interface lets you check practical technical drivers of LPL Financial Holdings as well as the relationship between them. Strictly speaking you can use this information to find out if the firm will indeed mirror its model of past prices or the prices will eventually revert. We found nineteen technical drivers for LPL Financial which can be compared to its peers in the industry. Please verify LPL Financial Holdings Maximum Drawdown, and the relationship between Information Ratio and Downside Variance to decide if LPL Financial Holdings is priced more or less accurately providing market reflects its recent price of 77.93 per share. Given that LPL Financial Holdings has Jensen Alpha of 0.5664, we recommend you check LPL Financial last-minute market performance to make sure the company can sustain itself at some point future time.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as LPL Financial. Your research has to be compared to or analyzed against LPL Financial's peers to derive any actionable benefits. When done correctly, LPL Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in LPL Financial Holdings.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of LPL Financial Holdings. In general, sophisticated investors focus on analyzing LPL Financial stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build LPL Financial's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of LPL Financial's intrinsic value. In addition to deriving basic predictive indicators for LPL Financial, many experienced traders also check how macroeconomic factors affect LPL Financial price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of LPL Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is LPL Financial's Liquidity
LPL Financial financial leverage refers to using borrowed capital as a funding source to finance LPL Financial Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LPL Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to LPL Financial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of LPL Financial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between LPL Financial's total debt and its cash.
LPL Financial Gross Profit
LPL Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing LPL Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show LPL Financial Gross Profit growth over the last 10 years. Please check LPL Financial's gross profit and other fundamental indicators for more details.
An Additional Perspective On LPL Financial Holdings
The latest price spikes of LPL Financial Holdings may encourage investors to take a closer look at the firm as it closed today at a share price of 77.0 on 1.000 in trading volume. The company management were quite successful positioning the firm components to exploit market volatility in March 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6467. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. LPL Financial discloses 254.20% in debt to equity. LPL Financial is trading at 77.93 which is 1.16 percent increase. Today highest was 78.86. LPL Financial Debt to Equity Ratio is somewhat stable at the moment. Also, LPL Financial Enterprise Value over EBIT is decreasing over the last 5 years. The previous year value of LPL Financial Enterprise Value over EBIT was 230.91.
To summarize, we see that LPL Financial Moves indifferently to market moves. The company is overvalued with low odds of distress within the next 24 months. Our concluding 'Buy vs. Hold vs. Sell' recommendation on the company is Hold.
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