Loar HoldingsLOAR +0.04%16 Return-on-Tangible-Asset is 10.19% as of Mar. 2026, which is 213% above its 10-year median of 3.26. GuruFocus rates LOAR with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 356 Aerospace & Defense companies, Loar Holdings ranks better than 93.26% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Loar Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $44.6 Mil. Loar Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was $437.4 Mil. Therefore, Loar Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 10.19%.
The historical rank and industry rank for Loar Holdings's Return-on-Tangible-Asset or its related term are showing as below:
LOAR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -1.87 Med: 3.26 Max: 19.56
Current: 16.75
During the past 4 years, Loar Holdings's highest Return-on-Tangible-Asset was 19.56%. The lowest was -1.87%. And the median was 3.26%.
LOAR's Return-on-Tangible-Asset is ranked better than 93.26% of 356
companies
in the Aerospace & Defense industry
Industry Median: 3.085
vs LOAR: 16.75
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Loar Holdings Return-on-Tangible-Asset Related Terms
Loar Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Loar Holdings's Return-on-Tangible-Asset 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 vs HXL, AVAV, DPC: Return-on-Tangible-Asset Comparison
For the Aerospace & Defense subindustry, Loar Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Loar Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Loar Holdings's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 10.19% mean?
Loar Holdings (LOAR) has a Return-on-Tangible-Asset of 10.19% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Loar Holdings and its competitors. This is 213% above median its historical median of 3.26. According to the industry distribution chart, Loar Holdings ranks #24 out of 356 companies in the Aerospace & Defense industry, placing it in the top 6.7%.
Is Loar Holdings' Return-on-Tangible-Asset too high?
Loar Holdings' current Return-on-Tangible-Asset of 10.19% is 213% above median its 10-year median of 3.26. The Aerospace & Defense industry median Return-on-Tangible-Asset is 3.09. Loar Holdings' value of 10.19% is 230.3% above this industry median. Based on the distribution chart, Loar Holdings ranks #24 out of 356 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Loar Holdings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Loar Holdings' Return-on-Tangible-Asset compare to HXL and AVAV?
According to the Aerospace & Defense industry distribution chart, Loar Holdings ranks #24 out of 356 companies for Return-on-Tangible-Asset. This places Loar Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.09. Loar Holdings' value of 10.19% is 230.3% above this benchmark. While the company's 10-year median is 3.26 vs. the industry median of 3.09, Loar Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Aerospace & Defense company?
The median Return-on-Tangible-Asset among Aerospace & Defense companies is 3.09, based on 356 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Loar Holdings's current Return-on-Tangible-Asset of 10.19% is 230.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Loar Holdings and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Asset is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Loar Holdings's current Return-on-Tangible-Asset is 10.19%, which is 213% above median its own 10-year median of 3.26. 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 Return-on-Tangible-Asset of 10.19%. The current Return-on-Tangible-Asset is 10.19%, which is 213% above median its 10-year median of 3.26 and 230.3% above the Aerospace & Defense industry median of 3.09. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Loar Holdings (LOAR), the current Return-on-Tangible-Asset is 10.19% as of Mar. 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 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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