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Loar Holdings Inc. (LOAR) stock analysis

LOARNYSEAircraft Parts & Auxiliary Equipment, NECFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 6/3095% above fair value
$79.24−0.37 (-0.46%)

Close on Nov 11, 2026Market cap $7.42BP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value1Growth2Performance1Health2Dividend0

Weak6 of 30 checks passed

Loar passes 6 of the 30 checks behind our score; 14 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
1/6
Growth
2/6
Past performance
1/6
Financial health
2/6
Dividend
0/6

What stands out

  • Low bankruptcy risk

    The Altman Z-score is 4.64; above 3 is the safe zone and below 1.8 the distress zone.

  • EV/EBITDA below its 5-year median

    Loar's EV/EBITDA of 56.5 is below its 5-year median of 69.6.

  • Growing faster than the industry

    Revenue grew 33.8% over the last twelve months; the Aircraft and Parts median is 16.9%.

  • Gross margin improving

    Gross margin was 52.6% over the last twelve months, against 51.9% a year earlier.

What to watch

  • Margin of safety under 20%

    The price is 95.3% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $79.24 is above our fair value estimate of $40.58.

  • Return on capital under 10%

    Return on invested capital was 6.5%, below the 10% that usually covers the cost of capital.

  • High debt

    Debt is 77.7% of shareholders' equity, above the 40% we consider low.

Valuation1/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA below its 5-year median

    Loar's EV/EBITDA of 56.5 is below its 5-year median of 69.6.

  • P/B above the industry

    Loar's price-to-book of 6.08 is above the Aircraft and Parts median of 2.88.

  • Trading above fair value

    The share price of $79.24 is above our fair value estimate of $40.58.

  • Margin of safety under 20%

    The price is 95.3% above fair value, so there is no margin of safety.

Growth2/6

  • Revenue growth over 3 years

    Needs three years of positive revenue.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing faster than the industry

    Revenue grew 33.8% over the last twelve months; the Aircraft and Parts median is 16.9%.

  • Guidance lowered

    Loar lowered its full year 2026 Net income outlook on Aug 6, 2026.

  • Gross margin improving

    Gross margin was 52.6% over the last twelve months, against 51.9% a year earlier.

Past performance1/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on capital under 10%

    Return on invested capital was 6.5%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Loar's return on equity of 5.0% is below the Aircraft and Parts median of 9.1%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin above the industry

    Loar's net margin of 9.4% is above the Aircraft and Parts median of 5.5%.

Financial health2/6

  • High debt

    Debt is 77.7% of shareholders' equity, above the 40% we consider low.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 14.4% of total debt; we look for at least 20%.

  • Interest not well covered

    Operating income covers interest expense 2.2 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 5.38 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 4.64; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Loar has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$40.58

The share price is 95% above this estimate.

20%+ below
Near fair value
20%+ above
$79.24Price$40.58Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
EV/EBITDA30.0×69.6×16.8×$38.1178%
P/B3.8×5.9×2.9×$49.2222%
Earnings powerleft out, too far from the others10.1% cost of equity––$6.36–
Fair value$40.58100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • EV/EBITDA at month end
  • Own 5-year median 69.6
  • Aircraft and Parts median 16.8

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$73.47M
Value traded per 1% price move
$28.46M

Downside

Medium risk

Typical loss in a bad month
19.2%
Volatility (annualized)
44%
Sharpe ratio, 1 year
-0.04
Beta to the S&P 500 (5Y)
1.04

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2023 to 2025

Gross margin

52.7%

Operating margin

21.4%

Net margin

14.5%

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