Is LPL Financial Holdings Inc. (LPLA) Halal?

NASDAQ Financial Services United States $23.8B
✗ NOT HALAL
Confidence: 95/100
LPL Financial Holdings Inc. (LPLA) is Not Halal under AAOIFI Standard 21 due to its classification in the Capital Markets industry, which is excluded under Shariah screening. Companies operating in prohibited sectors such as conventional banking, insurance, alcohol, tobacco, and gambling are automatically excluded regardless of their financial ratios.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI Excluded — Capital Markets ✗ NOT HALAL
DJIM Excluded — Capital Markets ✗ NOT HALAL
MSCI Excluded — Capital Markets ✗ NOT HALAL
S&P Excluded — Capital Markets ✗ NOT HALAL
FTSE Excluded — Capital Markets ✗ NOT HALAL

Financial Highlights

P/E Ratio
27.2
Forward: 10.2
EPS
$10.93
Dividend Yield
40.0%
Payout: 11.0%
P/B Ratio
4.4
Revenue
$17.0B
Growth: 41.8%
Beta
0.6
Low volatility
Current Ratio
2.4

Profitability

Gross Margin 30.9%
Operating Margin 10.1%
Net Margin 5.2%
Return on Equity (ROE) 20.9%
Return on Assets (ROA) 5.4%

Cash Flow & Balance Sheet

Operating Cash Flow-$411M
Free Cash Flow-$982M
Total Debt$7.5B
Debt-to-Equity141.7
Current Ratio2.4
Total Assets$18.5B

Price & Trading

Last Close$303.72
50-Day MA$331.49
200-Day MA$352.71
Avg Volume972K
Beta0.6
52-Week Range
$262.83
$403.58

About LPL Financial Holdings Inc. (LPLA)

CEO
Mr. Richard Steinmeier
Employees
10,099
Sector
Financial Services
Industry
Capital Markets
Country
United States
Exchange
NASDAQ
Market Cap
$23.8B
Currency
USD

LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at institutions in the United States. The company's brokerage offerings include variable and fixed annuities, mutual funds, equities, fixed income, alternative investments, retirement and 529 education savings plans, and insurance; and client cash programs consist of Federal Deposit Insurance Corporation (FDIC) insured bank sweep vehicles, and a client cash and money market account. It also provides fee-based platforms that provide access to mutual funds, exchange traded funds, stocks, bonds, certain options strategies, unit investment trusts, institutional money managers, and no-load multi-manager variable annuities. In addition, the company offers retirement solutions for commission and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, it provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services for estates and families; an advisor-facing trading and portfolio rebalancing platform; insurance brokerage general agency services; and technology products, including proposal generation, investment analytics, and portfolio modeling. The company was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California.

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Frequently Asked Questions

Is LPL Financial Holdings Inc. (LPLA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), LPL Financial Holdings Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is LPL Financial Holdings Inc.'s debt ratio?

LPL Financial Holdings Inc.'s debt ratio is not available under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%.

What are LPL Financial Holdings Inc.'s key financial metrics?

LPL Financial Holdings Inc. has a market capitalization of $23.8B, trailing P/E ratio of 27.2, and revenue of $17.0B. The company maintains a gross margin of 30.9% and a net margin of 5.2%. Return on equity stands at 20.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.