Loar HoldingsLOAR +3.07%16 ROE % is 3.79% as of Mar. 2026, which is 221% above its 10-year median of 1.18. GuruFocus rates LOAR with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 347 Aerospace & Defense companies, Loar Holdings ranks worse than 50.14% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Loar Holdings's annualized net income for the quarter that ended in Mar. 2026 was $44.6 Mil. Loar Holdings's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $1,177.3 Mil. Therefore, Loar Holdings's annualized ROE % for the quarter that ended in Mar. 2026 was 3.79%.
The historical rank and industry rank for Loar Holdings's ROE % or its related term are showing as below:
LOAR'
s ROE % Range Over the Past 10 Years
Min: -1.1 Med: 1.18 Max: 6.38
Current: 5.91
During the past 4 years, Loar Holdings's highest ROE % was 6.38%. The lowest was -1.10%. And the median was 1.18%.
LOAR's ROE % is ranked worse than 50.14% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs LOAR: 5.91
Loar Holdings (NYSE:LOAR) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Loar Holdings ROE % Related Terms
Loar Holdings ROE % Historical Data
* Premium members only.
The historical data trend for Loar Holdings's ROE % 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.
For the Aerospace & Defense subindustry, Loar Holdings's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Loar Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Loar Holdings's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Loar Holdings (LOAR) has a ROE % of 3.79% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Loar Holdings and its competitors. This is 221% above median its historical median of 1.18. According to the industry distribution chart, Loar Holdings ranks #174 out of 347 companies in the Aerospace & Defense industry, placing it in the top 50.1%.
Is Loar Holdings' ROE % too high?
Loar Holdings' current ROE % of 3.79% is 221% above median its 10-year median of 1.18. The Aerospace & Defense industry median ROE % is 5.91. Loar Holdings' value of 3.79% is 35.9% below this industry median. Based on the distribution chart, Loar Holdings ranks #174 out of 347 companies in the Aerospace & Defense industry, which is below 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' ROE % compare to MRCY and HXL?
According to the Aerospace & Defense industry distribution chart, Loar Holdings ranks #174 out of 347 companies for ROE %. This places Loar Holdings in the lower half of its industry. The industry median ROE % is 5.91. Loar Holdings' value of 3.79% is 35.9% below this benchmark. While the company's 10-year median is 1.18 vs. the industry median of 5.91, Loar Holdings has consistently been below 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 ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Loar Holdings's current ROE % of 3.79% is 35.9% below 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Loar Holdings and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Loar Holdings's current ROE % is 3.79%, which is 221% above median its own 10-year median of 1.18. 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 ROE % of 3.79%. The current ROE % is 3.79%, which is 221% above median its 10-year median of 1.18 and 35.9% below the Aerospace & Defense industry median of 5.91. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Loar Holdings (LOAR), the current ROE % is 3.79% 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.
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