Loar Holdings Inc. (LOAR) AI Stock Analysis

• Market Cap: $8.23B
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 230.9
• Beta (1Y): 1.18
• Revenue Growth: 27.03%
• EPS Growth: 562.31%
• Country: US
• Employees: 1,500
• Sector: General
• Sector Strength: N/A
• Industry: Aerospace & Defense
• EPS (TTM): 0.20
• Shares Outstanding: 93,556,070
• 10 Day Avg. Volume: 1,170,958
• 30 Day Avg. Volume: 1,209,197
• PEG Ratio: 0.00
• Price to Book (P/B): 8.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 704.20
• Enterprise Value/Market Cap: 0.51
• Enterprise Value/Revenue: 2.85
• Enterprise Value/Gross Profit: 19.70
• Enterprise Value/Ebitda: 9.08
• 1Y Price Target: $100.25
• Price Target Upside: 13.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $89.00 ▲(1.16%Upside)

Loar Holdings Inc. demonstrates strong financial performance and a positive earnings outlook, driving the stock's score. The company's innovative capabilities and raised guidance are strengths. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals, adding some risk to the investment.

Positive Factors

Financial Performance

Loar Holdings Inc. reported a solid Q1 with 11% organic growth and operating profit up 22%, driven by strong performance in the Defense sector and expanding EBITDA margins.

Growth Strategy

Loar continues to execute on its organic and inorganic growth strategy with record bookings across all end markets.

Investment Appeal

The stock has an attractive bull to bear skew of approximately 2.5x, enhancing its investment appeal.

Negative Factors

Stock Performance

The recent underperformance of LOAR's stock provides an attractive entry point for investors.

Loar Holdings Inc. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Loar Holdings Inc. generates revenue primarily through the operations of its subsidiaries, each contributing through sales of specialized products and services in their respective industries. In the aerospace sector, the company earns money by supplying aircraft components and systems to major aerospace manufacturers and defense contractors. Revenue is also derived from long-term contracts and partnerships with governments and corporations for defense-related products. Additionally, Loar Holdings benefits from its industrial manufacturing units, which produce and sell machinery, tools, and equipment to various commercial sectors. Strategic acquisitions and investments in high-growth potential companies further contribute to its earnings by expanding market reach and enhancing operational synergies.

Loar Holdings Inc. Financial Statement Overview

Summary

Loar Holdings Inc. exhibits strong financial performance with robust revenue growth and improved profitability. The balance sheet is solid with minimal debt, and cash flow generation is efficient, though there is room for further optimization in profitability margins and return on equity.

Income Statement

Loar Holdings Inc. has demonstrated strong revenue growth with a significant 26.9% increase from 2023 to 2024, indicating a positive trajectory. The gross profit margin improved to 49.36%, reflecting efficient cost management. The net profit margin turned positive at 5.52% after a loss in 2023, showing improved profitability. However, the EBIT and EBITDA margins, both at 21.75% for 2024, while healthy, have room for improvement compared to industry leaders.

Balance Sheet

The company has a solid balance sheet with a low debt-to-equity ratio of 0.0084, indicating minimal leverage risk. The return on equity improved to 2.04%, suggesting better utilization of shareholder funds. A robust equity ratio of 75.05% underscores strong financial stability. However, further improvement in ROE is desirable to enhance shareholder value.

Cash Flow

Loar Holdings Inc. experienced substantial free cash flow growth, increasing free cash flow to $46.1 million in 2024, a notable improvement from 2023. The operating cash flow to net income ratio is robust at 2.47, indicating efficient cash generation. However, the free cash flow to net income ratio is slightly weaker at 2.07, suggesting potential areas for optimization in cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	425.63M	402.82M	317.48M	239.43M
Gross Profit	214.10M	198.82M	154.26M	111.50M
EBITDA	120.45M	124.24M	107.52M	81.69M
Net Income	35.30M	22.23M	-4.62M	-2.47M
Balance Sheet
Total Assets	1.48B	1.45B	1.05B	994.52M
Cash, Cash Equivalents and Short-Term Investments	80.50M	54.07M	21.49M	35.50M
Total Debt	9.36M	286.43M	545.48M	496.44M
Total Liabilities	372.15M	362.11M	632.30M	572.55M
Stockholders Equity	1.11B	1.09B	418.14M	421.97M
Cash Flow
Free Cash Flow	62.52M	46.10M	679.00K	5.34M
Operating Cash Flow	70.84M	54.97M	12.81M	13.27M
Investing Cash Flow	-391.58M	-392.13M	-72.56M	-181.83M
Financing Cash Flow	373.42M	370.02M	45.72M	135.31M

Loar Holdings Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 87.98
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LOAR, the sentiment is Positive. The current price of 87.98 is above the 20-day moving average (MA) of 85.37, below the 50-day MA of 88.07, and above the 200-day MA of 79.92, indicating a neutral trend. The MACD of -0.62 indicates Negative momentum. The RSI at 56.94 is Neutral, neither overbought nor oversold. The STOCH value of 89.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOAR.

Loar Holdings Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERJ	76 Outperform	$10.01B	25.34	13.36%	0.36%	22.29%	51.90%
BWXT	75 Outperform	$13.08B	45.53	28.24%	0.70%	9.87%	14.16%
MOG.A	73 Outperform	$5.71B	28.06	11.61%	0.64%	4.50%	9.90%
SARO	68 Neutral	$10.58B	150.12		―	16.92%	―
LOAR	67 Neutral	$8.23B	230.92	4.62%	―	27.03%	562.31%
Sector *	56 Neutral	$5.74B	25.92	-31.28%	5.61%	10.88%	-29.73%
SPR	37 Underperform	$4.53B	―	81.63%	―	-2.91%	-109.95%

Loar Holdings Inc. Corporate Events

Loar Holdings Inc. Annual Shareholders Meeting Highlights

On June 3, 2025, Loar Holdings Inc. held its Annual Meeting of Shareholders where key decisions were made, including the re-election of four directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Additionally, shareholders approved the Amended and Restated Loar Holdings Inc. 2024 Incentive Plan, which is expected to influence the company’s strategic direction and operational incentives.

The most recent analyst rating on (LOAR) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Loar Holdings Inc. stock, see the LOAR Stock Forecast page.

Loar Holdings Inc. Completes Share Offering with Jefferies

Loar Holdings Inc. entered into a registration rights agreement on April 29, 2024, with several affiliates and principal investors, including Abrams Capital Management and Blackstone Alternative Credit Advisors. This agreement included an additional lock-up period for key executives, with limited waivers allowing some share transfers. On May 13, 2025, a waiver was issued to allow certain executives to sell shares proportionate to their holdings. On May 14, 2025, Loar Holdings Inc. entered into an underwriting agreement with Jefferies LLC and Morgan Stanley for an offering of 9,000,000 shares of common stock, with an additional option for 1,350,000 shares. The offering closed on May 16, 2025, and the option shares closed on May 19, 2025, at a price of $83.41 per share. The company did not receive any proceeds as all shares were sold by selling shareholders.

The most recent analyst rating on (LOAR) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Loar Holdings Inc. stock, see the LOAR Stock Forecast page.