Loar Holdings Inc.
$63.02
+1.2%Loar Holdings, Inc. engages in the design, manufacture, and sale of niche aerospace and defense components for aircraft, aerospace and defense systems. The company was founded on August 21, 2017 and is headquartered in White Plains, NY.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 81.8).
Valuation inputs: P/E 81.8, earnings yield +1.2%, momentum +1.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +6.1%, ROIC +5.3%).
Profitability stack: net margin +14.5%, ROE +6.1%, ROIC +5.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile looks controlled across current risk inputs.
Risk factors: liabilities/assets +42.1%, momentum +1.2%, net margin +14.5%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Loar Holdings Inc. Market vs Earnings Trajectory
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Loar Holdings Inc. Fair Value Envelope
Loar Holdings Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Loar Holdings Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Loar Holdings Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.
Loar Holdings Inc. Street Expectations Map
Wall Street analysts project that LOAR stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 86.00, with estimates ranging from a low of 75.00 to a high of 98.00.
The consensus 1-year price target stands at 86.00, with estimates ranging from a low of 75.00 to a high of 98.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Loar Holdings Inc. Insider Positioning
During the last 12 months, insiders have purchased $8.07M and sold $14.30M worth of LOAR shares, resulting in $6.23M of net selling activity.
3 Months
122.5K
8.07M
35.0K
2.12M
+5.9M
+$5.95M
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
147.4K
12.18M
-12.2M
-$12.18M
Top Buyers
Levy Paul S
Director
$4.87M
Charles Dirkson R
Director, Officer: See Remarks
$2.97M
Carpenito Anthony
Director, 10 Percent Owner:
$231K
Top Sellers
Blackstone Holdings Iv L.P.
10 Percent Owner
$4.06M
Blackstone Alternative Credit Advisors Lp
10 Percent Owner
$4.06M
Gso Capital Opportunities Fund Iii Lp
10 Percent Owner
$4.06M
Danmola Taiwo K.
Director
$2.12M
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $6.23M net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
4 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
No Dividend Yield Data
LOAR has not reported any dividend yield values in the available annual periods.
loar Dividend History
Learning Layer
Related Guides
Build conviction on LOAR by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.