Loar HoldingsLOAR +0.80%16 3-Year RORE % is 55.98 as of Mar. 2026. GuruFocus rates LOAR with a GF Score™ of 16/100. The stock has 5 warning signs investors should review. Among 316 Aerospace & Defense companies, Loar Holdings ranks better than 82.28% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Loar Holdings's 3-Year RORE % for the quarter that ended in Mar. 2026 was 55.98%.
The industry rank for Loar Holdings's 3-Year RORE % or its related term are showing as below:
LOAR's 3-Year RORE % is ranked better than 82.28% of 316
companies
in the Aerospace & Defense industry
Industry Median: 9.565
vs LOAR: 55.98
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Loar Holdings 3-Year RORE % Related Terms
Loar Holdings 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Loar Holdings's 3-Year RORE % 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 RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Loar Holdings's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Loar Holdings's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Loar Holdings (LOAR) has a 3-Year RORE % of 55.98 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Loar Holdings and its competitors. According to the industry distribution chart, Loar Holdings ranks #56 out of 316 companies in the Aerospace & Defense industry, placing it in the top 17.7%.
Is Loar Holdings' 3-Year RORE % too high?
Loar Holdings' current 3-Year RORE % is 55.98. The Aerospace & Defense industry median 3-Year RORE % is 9.57. Loar Holdings' value of 55.98 is 485.3% above this industry median. Based on the distribution chart, Loar Holdings ranks #56 out of 316 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' 3-Year RORE % compare to HXL and AVAV?
According to the Aerospace & Defense industry distribution chart, Loar Holdings ranks #56 out of 316 companies for 3-Year RORE %. This places Loar Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median 3-Year RORE % is 9.57. Loar Holdings' value of 55.98 is 485.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Aerospace & Defense company?
The median 3-Year RORE % among Aerospace & Defense companies is 9.57, based on 316 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Loar Holdings's current 3-Year RORE % of 55.98 is 485.3% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Loar Holdings and its competitors. For the Aerospace & Defense industry, the median 3-Year RORE % is 9.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Loar Holdings's current 3-Year RORE % is 55.98. 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 RORE % of 55.98. The current 3-Year RORE % is 55.98 and 485.3% above the Aerospace & Defense industry median of 9.57. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Loar Holdings (LOAR), the current 3-Year RORE % is 55.98 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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