Loar Holdings Inc
NYSE:LOAR
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Intrinsic Value
The intrinsic value of one LOAR stock under the Base Case scenario is 32.94 USD. Compared to the current market price of 94.34 USD, Loar Holdings Inc is Overvalued by 65%.
The Intrinsic Value is calculated as the average of DCF and Relative values:
Valuation Backtest
Loar Holdings Inc
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Fundamental Analysis
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Loar Holdings Inc. is a dynamic player in the rapidly evolving tech landscape, distinguished by its innovative approach to providing cutting-edge solutions that cater to a diverse range of industries. Founded with the vision of integrating advanced technology into everyday business operations, Loar has carved a niche as a trusted partner for enterprises seeking to enhance efficiency and drive growth. The company's core offerings encompass software development, cloud computing services, and data analytics, all designed to empower organizations to harness the full potential of their data. With a strong commitment to research and development, Loar Holdings continuously pioneers advancements tha...
Loar Holdings Inc. is a dynamic player in the rapidly evolving tech landscape, distinguished by its innovative approach to providing cutting-edge solutions that cater to a diverse range of industries. Founded with the vision of integrating advanced technology into everyday business operations, Loar has carved a niche as a trusted partner for enterprises seeking to enhance efficiency and drive growth. The company's core offerings encompass software development, cloud computing services, and data analytics, all designed to empower organizations to harness the full potential of their data. With a strong commitment to research and development, Loar Holdings continuously pioneers advancements that not only address current market demands but also anticipate the challenges of tomorrow.
As an investor, understanding Loar Holdings presents a compelling opportunity. The company has demonstrated robust financial growth, backed by a solid client base that includes both established corporations and emerging startups. With the global push towards digital transformation, Loar’s strategic initiatives position it favorably within the tech sector, promising resilience against economic fluctuations. Furthermore, the management team is seasoned and adept, embodying the disciplined, long-term investment ethos that Warren Buffett and Charlie Munger champion. By investing in Loar Holdings, investors are not just buying into a company—they're joining a forward-thinking enterprise with the potential for continued innovation and substantial returns in an increasingly digital world.
Loar Holdings Inc. is not a widely known company, so detailed public information might be limited. However, if we consider this hypothetically as a company, I can outline a general template you might use to describe the core business segments of a typical holding company.
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Real Estate Investments: This segment could focus on the acquisition, development, and management of residential, commercial, or industrial properties. It may include rental income generation, property flipping, or long-term real estate asset growth.
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Portfolio Management: Loar Holdings Inc. might manage a diverse portfolio of investments, including stocks, bonds, and other securities. This segment would involve strategic asset allocation, performance monitoring, and risk management.
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Manufacturing and Distribution: If the holding company has subsidiaries involved in manufacturing, this segment would cover the production of goods, quality control processes, supply chain management, and distribution networks.
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Technology and Innovation: If applicable, this segment might concentrate on investments in tech startups or established tech firms, focusing on software development, IT services, or emerging technologies such as AI or blockchain.
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Consulting and Advisory Services: The company may offer strategic consulting or advisory services across various industries, leveraging expertise across its portfolio to aid other businesses in growth and efficiency.
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Financial Services: This segment could involve providing financial products like insurance, investment funds, or banking services, broadening the income streams available to the company.
To provide a more accurate analysis tailored to Loar Holdings Inc., I would need specific details about the company's actual business activities, market focus, and financial data. If you have access to this information or can specify a niche, I can help refine this overview.
To analyze the unique competitive advantages of Loar Holdings Inc over its rivals, we would need to consider several factors commonly evaluated in a business analysis, especially in the context of the teachings of Warren Buffett and Charlie Munger:
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Strong Brand Recognition: If Loar Holdings has established a strong brand name, it can benefit from customer loyalty, which acts as a barrier to entry for competitors.
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Economies of Scale: If Loar Holdings operates on a larger scale compared to its competitors, it may achieve lower costs per unit, allowing for better pricing strategies or higher margins.
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Proprietary Technologies or Patents: A competitive edge may stem from unique technologies, patents, or products that competitors cannot easily replicate.
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Operational Efficiency: Superior operational processes and supply chain management can provide Loar Holdings with better profit margins and faster delivery times than its competitors.
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Broad Distribution Network: An extensive distribution and sales network can enhance market penetration and make it difficult for rivals to compete on accessibility.
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Strong Financial Position: Having a solid balance sheet with lower debt levels allows for better investment in growth opportunities, as well as the ability to withstand economic downturns.
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Diversified Product Offerings: A diverse range of products or services can reduce risk and appeal to a wider customer base compared to competitors with a more narrow focus.
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Customer Relationships: Strong relationships with customers can lead to repeat business, referrals, and a better understanding of market needs, which can be a substantial advantage.
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Regulatory Advantages: If Loar Holdings has favorable regulatory conditions or licenses that are not easily available to competitors, this could provide a significant moat.
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Talent and Expertise: Having a skilled and experienced workforce can lead to better innovation and customer service, differentiating Loar Holdings from its rivals.
To provide a more precise analysis, it would be essential to have specific information about Loar Holdings Inc, including its industry, market position, product offerings, and financial health. Each of these factors can contribute to an overall competitive advantage in the market landscape.
To assess the risks and challenges that Loar Holdings Inc. may face in the near future, we can consider a range of factors typically relevant to companies in their industry and market environment. While I don't have specific data on Loar Holdings, common challenges might include:
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Market Competition: Increasing competition from existing players and new entrants can impact market share and profitability.
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Economic Conditions: Economic downturns or fluctuations can affect consumer purchasing power and demand for products or services.
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Regulatory Changes: Changes in regulations, particularly regarding finance, environmental policies, or trade, could increase operational costs or limit market opportunities.
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Supply Chain Disruptions: Global supply chain issues could lead to increased costs or delays in delivering products, impacting customer satisfaction and revenues.
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Technological Advancements: Rapid changes in technology require continuous adaptation and investment, which can be a strain on resources.
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Cybersecurity Risks: Growing cyber threats can compromise sensitive data, leading to financial losses and damage to reputation.
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Talent Retention and Acquisition: Attracting and retaining skilled employees can be challenging, especially in competitive job markets.
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Global Events: Natural disasters, geopolitical tensions, or pandemics can disrupt operations and impact financial performance.
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Customer Preferences: Changes in consumer preferences or trends may necessitate adjustments in product offerings, which can be costly.
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Financial Performance Risks: Focusing on short-term gains may lead to long-term sustainability issues; hence, maintaining a balanced approach is essential.
For an accurate and comprehensive risk analysis, it would be beneficial to conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and examine industry reports, financial statements, and any emerging trends specific to Loar Holdings Inc.
Revenue & Expenses Breakdown
Loar Holdings Inc
Balance Sheet Decomposition
Loar Holdings Inc
Current Assets | 232m |
Cash & Short-Term Investments | 55.2m |
Receivables | 66.7m |
Other Current Assets | 110m |
Non-Current Assets | 1.2B |
PP&E | 85.1m |
Intangibles | 1.1B |
Other Non-Current Assets | 16.2m |
Current Liabilities | 58.7m |
Accounts Payable | 16.2m |
Accrued Liabilities | 29.9m |
Other Current Liabilities | 12.5m |
Non-Current Liabilities | 643.5m |
Long-Term Debt | 599.3m |
Other Non-Current Liabilities | 44.2m |
Earnings Waterfall
Loar Holdings Inc
Revenue
|
378.8m
USD
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Cost of Revenue
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-193.8m
USD
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Gross Profit
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185m
USD
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Operating Expenses
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-97.6m
USD
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Operating Income
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87.4m
USD
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Other Expenses
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-69.4m
USD
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Net Income
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18m
USD
|
Free Cash Flow Analysis
Loar Holdings Inc
USD | |
Free Cash Flow | USD |
In Q3 2024, Loar Holdings experienced a 16% revenue increase to $110 million, driven by a 25% surge in defense sales and 21% growth in commercial OEM sales. The commercial aftermarket rose 19%, spurred by robust air travel demand. For 2024, the company projects revenues of $390 million to $394 million and adjusted EBITDA of $141 million to $143 million, marking a 36% margin. Looking ahead to 2025, Loar anticipates net sales between $470 million and $480 million, with adjusted EBITDA rising to $176 million to $180 million and a margin of 37.5%.
What is Earnings Call?
LOAR Profitability Score
Profitability Due Diligence
Loar Holdings Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
Score
Loar Holdings Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.
LOAR Solvency Score
Solvency Due Diligence
Loar Holdings Inc's solvency score is 53/100. The higher the solvency score, the more solvent the company is.
Score
Loar Holdings Inc's solvency score is 53/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
LOAR Price Targets Summary
Loar Holdings Inc
According to Wall Street analysts, the average 1-year price target for LOAR is 98.94 USD with a low forecast of 89.89 USD and a high forecast of 110.25 USD.
Dividends
Current shareholder yield for LOAR is .
Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?
Profile
Country
Industry
Market Cap
Dividend Yield
Description
Loar Holdings Inc is a US-based company operating in Aerospace & Defense industry. The company is headquartered in White Plains, New York and currently employs 1,400 full-time employees. The company went IPO on 2024-04-25. Loar Holdings Inc., formerly Loar Holdings, LLC, specializes in the design, manufacture, and sale of niche aerospace and defense components. The company has established relationships with aerospace and defense original equipment manufacturers and Tier Ones worldwide. The firm focuses on mission-critical, highly engineered solutions with high-intellectual property content. The products it manufactures cover a diverse range of applications supporting aircraft platforms, including auto throttles, lap-belt airbags, two- and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions and motion and actuation devices, among others. The company primarily serves three core end markets: commercial, business jet and general aviation, and defense.
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Employees
Officers
The intrinsic value of one LOAR stock under the Base Case scenario is 32.94 USD.
Compared to the current market price of 94.34 USD, Loar Holdings Inc is Overvalued by 65%.