LPLA
LPL Financial Holdings Inc.
Finance/Real Estate
11/06/2014
Presented
| Date | 10/29/2014 |
| Price | $41.06 |
| Market Cap | $4.06B |
| Ent Value | $5.14B |
| P/E Ratio | 26.6x |
| Book Value | $10.65 |
| Div Yield | 2.1% |
| Shares O/S | 98.81M |
| Ave Daily Vol | 820,000 |
| Short Int | 1.79% |
Current
| Price | $252.20 |
| Market Cap | $18.86B |
| LPL Financial Holdings Inc. operates as a holding company which through its subsidiaries provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. It operates through Independent Advisor Services and Institution Services segments. The company’s brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and 529 education savings plans, fixed income products, and alternative investments, such as non-traded real estate investment trusts and business development companies; and insurance offerings comprise personalized advance case design, point-of-sale service, and product support for a range of life, disability, and long-term care products. It also provides fee-based advisory platforms and support solutions, which offers access to no-load/load-waived mutual funds, exchange-traded funds, stocks, bonds, conservative option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, the company offers cash sweep programs, including money market and insured bank deposit sweep vehicles; and provides fee-based and commission-based retirement solutions. Further, it provides other services, which include tools and services that enable advisors to maintain their practice; and administrative and custodial services to trusts for estates and families, as well as open architecture investment management solutions to trust departments of financial institutions. Additionally, the company offers solutions and consulting services to registered investment advisors, banks, and trust companies. It provides services to approximately 13,600 independent financial advisors; and financial advisors at approximately 700 financial institutions. LPL Financial Holdings Inc. was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. The company is based in Boston, Massachusetts. |
Presented by: Mick Hellman, Founder & Managing Partner, HMI Capital LLC at The Excellence in Investing: San Francisco conference
Publicly traded companies mentioned herein: LPL Financial Holdings Inc (LPLA), The Charles Schwab Corporation (SCHW)
Highlights
Mr. Hellman is long shares of LPL Financial (LPLA) and believes the financial advisory platform provider has built a strong model (number one in platform infrastructure), and the stock is trading at a depressed valuation due to legal/ regulatory expenses that will ultimately set the company up for future gains. He noted that his experience with Charles Schwab and “the gem RIA support platform they operate” pushed him to look for similar opportunities.
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