Loar Holdings Inc. (LOAR)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
Loar Holdings Inc. trades at USD69.46, which is 59% above the USD28.77 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 59 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 101.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Loar Holdings Inc.
Loar Holdings Inc., through its subsidiaries, designs, manufactures, and sells aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, interior securing devices, 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, motion and actuation devices, edge-lighted panels and knobs, and annunciators for incandescent and LED illuminated pushbutton switches, high-performance fans and cooling devices, lighting, Human-Machine Interface products, and bespoke lighting systems, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was incorporated in 2017 and is headquartered in White Plains, New York.
LOAR passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
8 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- David Abrams, ABRAMS CAPITAL MANAGEMENT, L.P.$1.84B · 39.6% of book
- Ken Griffin, CITADEL ADVISORS LLC$36.48M · 0.0% of book
- Select Equity Group, Select Equity Group, L.P.$11.67M · 0.1% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$9.62M · 0.0% of book
- Marshall Wace, MARSHALL WACE, LLP$4.75M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is Loar Holdings Inc. (LOAR) undervalued?
Against our discounted cash flow estimate of USD28.77, LOAR at USD69.46 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own LOAR?
8 of the institutions we track reported a position in LOAR in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is LOAR's P/E ratio?
LOAR trades at 101.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.