Loar Holdings Inc. Common Stock (LOAR)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking for businesses that earn high returns on capital and sell at a sensible price. Loar has a credible niche in aerospace and defense components, and the numbers show a real turnaround: in fiscal 2025, the year ended 2025-12-31, revenue was $496.3 million and net income was $72.1 million, versus $402.8 million and $22.2 million in fiscal 2024. In the latest reported quarter, fiscal Q2 2026 ended 2026-06-30, revenue was $171.6 million against $123.1 million in fiscal Q2 2025, but net income was flat at $16.7 million. That tells me sales are growing, yet profit conversion has stalled. The component portfolio may have certification-related stickiness, but low returns do not yet prove a wide moat. FairStock's calculations at the 2026-10-13 close of $61.85 show a P/E of 87.11, EV/EBITDA of 34.41, FCF yield of 1.8%, ROE of 5.84%, and ROCE of 4.89%. The Piotroski F-Score of 8/9 and Altman Z-Score of 3.42 suggest improving fundamentals and low bankruptcy risk, but the Graham Number of $14.30 and a negative margin of safety of -332.52% scream that price is far ahead of proven value. Debt/equity of 0.80 is manageable but not fortress-like. I see a decent business, but not a bargain. Growth may continue, yet I am not paid to pay 87 times earnings for sub-6% returns on equity and a 1.8% free cash flow yield. The Lynch category is TURNAROUND, and turnarounds need evidence of durable margins, not just revenue.

In plain English: Loar Holdings makes parts for airplanes and defense systems. The company is growing sales and has swung from losses to profits, but its latest profit was flat even as revenue rose, and its returns on the money it uses are low. At $61.85, the share price looks expensive compared with the profit and cash the business generates.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer