Loar Holdings Inc.
Loar Holdings Inc. Fundamental Analysis
Loar Holdings Inc. (LOAR) shows moderate financial fundamentals with a PE ratio of 97.31, profit margin of 13.33%, and ROE of 5.65%. The company generates $0.5B in annual revenue with strong year-over-year growth of 26.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze LOAR's fundamental strength across five key dimensions:
Efficiency Score
WeakLOAR struggles to generate sufficient returns from assets.
Valuation Score
WeakLOAR trades at a premium to fair value.
Growth Score
ModerateLOAR shows steady but slowing expansion.
Financial Health Score
ExcellentLOAR maintains a strong and stable balance sheet.
Profitability Score
WeakLOAR struggles to sustain strong margins.
Key Financial Metrics
Is LOAR Expensive or Cheap?
P/E Ratio
LOAR trades at 97.31 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, LOAR's PEG of 2.46 indicates potential overvaluation.
Price to Book
The market values Loar Holdings Inc. at 5.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 39.95 times EBITDA. This signals the market has high growth expectations.
How Well Does LOAR Make Money?
Net Profit Margin
For every $100 in sales, Loar Holdings Inc. keeps $13.33 as profit after all expenses.
Operating Margin
Core operations generate 22.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.65 in profit for every $100 of shareholder equity.
ROA
Loar Holdings Inc. generates $4.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Loar Holdings Inc. produces operating cash flow of $102.59M, showing steady but balanced cash generation.
Free Cash Flow
Loar Holdings Inc. generates strong free cash flow of $92.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.99 in free cash annually.
FCF Yield
LOAR converts 1.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
97.31
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.46
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
12.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How LOAR Stacks Against Its Sector Peers
| Metric | LOAR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 97.31 | 26.49 | Worse (Expensive) |
| ROE | 5.65% | 1307.00% | Weak |
| Net Margin | 13.33% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.25 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 5.92 | 10.48 | Strong Liquidity |
| ROA | 4.13% | -1549793.00% (disorted) | Weak |
LOAR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Loar Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
38.47%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
841.07%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
240.94%
Industry Style: Cyclical, Value, Infrastructure
High Growth