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Loar Holdings Inc
NYSE:LOAR

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Loar Holdings Inc
NYSE:LOAR
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Price: 94.34 USD 3.97% Market Closed
Market Cap: 8.5B USD
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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:

LOAR Intrinsic Value
32.94 USD
Overvaluation 65%
Intrinsic Value
Price
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Worst Case
Base Case
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Loar Holdings Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Business Breakdown

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...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

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
Efficiency

Earnings Waterfall
Loar Holdings Inc

Revenue
378.8m USD
Cost of Revenue
-193.8m USD
Gross Profit
185m USD
Operating Expenses
-97.6m USD
Operating Income
87.4m USD
Other Expenses
-69.4m USD
Net Income
18m USD

Free Cash Flow Analysis
Loar Holdings Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

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?
Fundamental Scores

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.

Positive Gross Profit
Exceptional Revenue Growth Forecast
Positive Operating Income
Positive Free Cash Flow
50/100
Profitability
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.

High Altman Z-Score
Short-Term Solvency
Long-Term Solvency
Low D/E
53/100
Solvency
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

Wall Street analysts forecast LOAR stock price to rise over the next 12 months.

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.

Lowest
Price Target
89.89 USD
5% Downside
Average
Price Target
98.94 USD
5% Upside
Highest
Price Target
110.25 USD
17% Upside
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Dividends

Loar Holdings Inc
does not pay dividends
Shareholder Yield

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?

Shareholder Yield
Dividend Yield
No dividends
Buyback Yield
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Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Profile

Loar Holdings Inc

Country

United States of America

Industry

Aerospace & Defense

Market Cap

8.5B USD

Dividend Yield

0%

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.

Contact

NEW YORK
White Plains
20 New King Street
+19149091311
loargroup.com

IPO

2024-04-25

Employees

1 400

Officers

President, CEO & Executive Co-Chairman
Mr. Dirkson R. Charles
Executive Co-Chairman
Mr. Brett N. Milgrim
Treasurer & CFO
Mr. Glenn D'Alessandro
Director of Investor Relations
Ian McKillop
VP, General Counsel & Secretary
Mr. Michael Manella
Executive Vice President
Mr. Paul Dolan

See Also

Discover More
What is the Intrinsic Value of one LOAR stock?

The intrinsic value of one LOAR stock under the Base Case scenario is 32.94 USD.

Is LOAR stock undervalued or overvalued?

Compared to the current market price of 94.34 USD, Loar Holdings Inc is Overvalued by 65%.

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