Loar HoldingsLOAR +0.80%16 3-Year ROIIC % is 6.34 as of Dec. 2025, which is at its 10-year median of 6.34. GuruFocus rates LOAR with a GF Score™ of 16/100. The stock has 5 warning signs investors should review. Among 321 Aerospace & Defense companies, Loar Holdings ranks better than 54.52% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Loar Holdings's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 6.34%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Loar Holdings's 3-Year ROIIC % or its related term are showing as below:
LOAR's 3-Year ROIIC % is ranked better than 54.52% of 321
companies
in the Aerospace & Defense industry
Industry Median: 3.84
vs LOAR: 6.34
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Loar Holdings 3-Year ROIIC % Related Terms
Loar Holdings 3-Year ROIIC % Historical Data
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The historical data trend for Loar Holdings's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Loar Holdings's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Loar Holdings's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Loar Holdings (LOAR) has a 3-Year ROIIC % of 6.34 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Loar Holdings and its competitors. This is near median its historical median of 6.34. Over the past decade, Loar Holdings' 3-Year ROIIC % has ranged from 6.34 to 6.34. According to the industry distribution chart, Loar Holdings ranks #146 out of 321 companies in the Aerospace & Defense industry, placing it in the top 45.5%.
Is Loar Holdings' 3-Year ROIIC % too high?
Loar Holdings' current 3-Year ROIIC % of 6.34 is near median its 10-year median of 6.34. Over the past 10 years, this metric has ranged from a low of 6.34 to a high of 6.34. The Aerospace & Defense industry median 3-Year ROIIC % is 3.84. Loar Holdings' value of 6.34 is 65.1% above this industry median. Based on the distribution chart, Loar Holdings ranks #146 out of 321 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' 3-Year ROIIC % compare to HXL and AVAV?
According to the Aerospace & Defense industry distribution chart, Loar Holdings ranks #146 out of 321 companies for 3-Year ROIIC %. This puts Loar Holdings in the upper half of its industry. The industry median 3-Year ROIIC % is 3.84. Loar Holdings' value of 6.34 is 65.1% above this benchmark. Historically, Loar Holdings' own 3-Year ROIIC % has ranged from 6.34 to 6.34 over the past decade. While the company's 10-year median is 6.34 vs. the industry median of 3.84, 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 3-Year ROIIC % for an Aerospace & Defense company?
The median 3-Year ROIIC % among Aerospace & Defense companies is 3.84, based on 321 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Loar Holdings's current 3-Year ROIIC % of 6.34 is 65.1% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Loar Holdings and its competitors. For the Aerospace & Defense industry, the median 3-Year ROIIC % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Loar Holdings's current 3-Year ROIIC % is 6.34, which is near median its own 10-year median of 6.34. 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 3-Year ROIIC % of 6.34. The current 3-Year ROIIC % is 6.34, which is near median its 10-year median of 6.34 and 65.1% above the Aerospace & Defense industry median of 3.84. Loar Holdings' overall GF Score™ is 16/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Loar Holdings (LOAR), the current 3-Year ROIIC % is 6.34 as of Dec. 2025. 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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