LOAR (Loar Holdings) Beneish M-Score: -2.47 (As of Jun. 25, 2026)


LOAR Loar Holdings Inc LOAR
16 GF Score
Price $73.80
! 3 Warning Signs
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What is Loar Holdings Beneish M-Score?

Loar Holdings LOAR +3.07% 16 Beneish M-Score is -2.47 as of Jun. 25, 2026. GuruFocus rates LOAR with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 326 Aerospace & Defense companies, Loar Holdings ranks better than 54.91% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Loar Holdings's Beneish M-Score or its related term are showing as below:

LOAR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.47   Med: -2.28   Max: -2.1
Current: -2.47

During the past 4 years, the highest Beneish M-Score of Loar Holdings was -2.10. The lowest was -2.47. And the median was -2.28.


Loar Holdings Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Loar Holdings's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Loar Holdings Beneish M-Score Chart

Loar Holdings Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 -2.19 -2.44

Loar Holdings Quarterly Data
Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.10 -2.32 -2.23 -2.44 -2.47

LOAR vs MRCY, HXL, ACHR: Beneish M-Score Comparison

For the Aerospace & Defense subindustry, Loar Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Loar Holdings Beneish M-Score vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Loar Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Loar Holdings's Beneish M-Score falls into.


LOAR
16GF Score
Loar Holdings Inc LOAR
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Loar Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Loar Holdings for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1759+0.528 * 0.963+0.404 * 1.0558+0.892 * 1.2633+0.115 * 0.9502
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9878+4.679 * -0.014489-0.327 * 1.9622
=-2.47

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $106.1 Mil.
Revenue was 156.088 + 131.75 + 126.751 + 123.123 = $537.7 Mil.
Gross Profit was 79.241 + 68.642 + 66.778 + 66.199 = $280.9 Mil.
Total Current Assets was $335.1 Mil.
Total Assets was $2,298.4 Mil.
Property, Plant and Equipment(Net PPE) was $97.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $57.5 Mil.
Selling, General, & Admin. Expense(SGA) was $101.3 Mil.
Total Current Liabilities was $73.5 Mil.
Long-Term Debt & Capital Lease Obligation was $951.9 Mil.
Net Income was 11.143 + 12.511 + 27.606 + 16.713 = $68.0 Mil.
Non Operating Income was -1.452 + -7.293 + -2.281 + -2.534 = $-13.6 Mil.
Cash Flow from Operations was 30.915 + 30.423 + 29.694 + 23.803 = $114.8 Mil.
Total Receivables was $71.4 Mil.
Revenue was 114.659 + 110.441 + 103.519 + 97.015 = $425.6 Mil.
Gross Profit was 59.706 + 53.962 + 52.904 + 47.526 = $214.1 Mil.
Total Current Assets was $258.1 Mil.
Total Assets was $1,478.8 Mil.
Property, Plant and Equipment(Net PPE) was $83.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.6 Mil.
Selling, General, & Admin. Expense(SGA) was $81.1 Mil.
Total Current Liabilities was $50.3 Mil.
Long-Term Debt & Capital Lease Obligation was $285.9 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(106.092 / 537.712) / (71.416 / 425.634)
=0.197303 / 0.167787
=1.1759

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(214.098 / 425.634) / (280.86 / 537.712)
=0.50301 / 0.522324
=0.963

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (335.087 + 97.175) / 2298.355) / (1 - (258.111 + 83.492) / 1478.805)
=0.811925 / 0.769001
=1.0558

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=537.712 / 425.634
=1.2633

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(45.586 / (45.586 + 83.492)) / (57.483 / (57.483 + 97.175))
=0.353166 / 0.371678
=0.9502

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(101.265 / 537.712) / (81.144 / 425.634)
=0.188326 / 0.190643
=0.9878

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((951.905 + 73.48) / 2298.355) / ((285.948 + 50.276) / 1478.805)
=0.446139 / 0.227362
=1.9622

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(67.973 - -13.56 - 114.835) / 2298.355
=-0.014489

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Loar Holdings has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.47 mean?
Loar Holdings (LOAR) has a Beneish M-Score of -2.47 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Loar Holdings and its competitors. According to the industry distribution chart, Loar Holdings ranks #147 out of 326 companies in the Aerospace & Defense industry, placing it in the top 45.1%.
Is Loar Holdings' Beneish M-Score too high?
Loar Holdings' current Beneish M-Score is -2.47. Based on the distribution chart, Loar Holdings ranks #147 out of 326 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Loar Holdings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Loar Holdings' Beneish M-Score compare to MRCY and HXL?
According to the Aerospace & Defense industry distribution chart, Loar Holdings ranks #147 out of 326 companies for Beneish M-Score. This puts Loar Holdings in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Aerospace & Defense company?
A good Beneish M-Score depends on the Aerospace & Defense industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Loar Holdings and its competitors. Loar Holdings's current Beneish M-Score is -2.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Loar Holdings stock overvalued right now?
Loar Holdings (LOAR) has a current Beneish M-Score of -2.47. The current Beneish M-Score is -2.47. Loar Holdings' overall GF Score™ is 16/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Loar Holdings (LOAR), the current Beneish M-Score is -2.47 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Loar Holdings Business Description

Address 20 New King Street, White Plains, New York, NY, USA, 10604
Loar Holdings Inc in the design, manufacture, and sale of niche aerospace and defense components that are essential for today's aircraft and aerospace and defense systems. Its manufactured products includes 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. Its operations are organized and managed as one segment designed to offer its customers aerospace-related parts and supplies.
16GF Score

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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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