Forensic Analysis · Industrials / Manufacturing / Defense · as of Aug 11, 2026
Loar Holdings Inc. (LOAR)
A forensic read on Loar Holdings Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
9.3
Distress distance
Clean
Earnings quality
4
Forensic signals
104.2
P / E (ttm)
6.1%
ROE
$6.6B
Market cap
23.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Loar Holdings Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 9.3, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+31.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +31.7% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +38% against revenue +23% and inventory up +18% against +15% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 3% of net operating assets, diverging from the balance-sheet accrual read.
5.0%
FY2025
Return on invested capital.Return on invested capital is 5.0% in the latest fiscal year and steady — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+4.6%/yr
FY2024–FY2025
Share-count dilution.Diluted share count changed +5% over the last 1 year to FY2025 (+4.6%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~4.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~4%.
3% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 3% of revenue in FY2025. The cost of it is not in the cash flow — no cash left the business — it is in the count, and there it has run at about 4.6% a year, small enough that totals and per-share results tell the same story.
Key fundamentals
Latest Revenue$496.3M
Revenue Growth YoY+23.2%
Net Margin14.5%
Return on Equity6.1%
Debt / Equity0.61x
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