Loar Holdings Profitability Analysis
| LOAR Stock | 89.06 5.28 5.60% |
Net Loss | First Reported 2010-12-31 | Previous Quarter -4.6 M | Current Value -4.8 M | Quarterly Volatility 796.9 K |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.38 | 0.4859 |
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| Operating Profit Margin | 0.15 | 0.2189 |
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For Loar Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Loar Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Loar Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Loar Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Loar Holdings over time as well as its relative position and ranking within its peers.
Loar |
Loar Holdings' Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Loar Holdings. If investors know Loar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Loar Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Loar Holdings is measured differently than its book value, which is the value of Loar that is recorded on the company's balance sheet. Investors also form their own opinion of Loar Holdings' value that differs from its market value or its book value, called intrinsic value, which is Loar Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Loar Holdings' market value can be influenced by many factors that don't directly affect Loar Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Loar Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if Loar Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Loar Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Loar Holdings EBITDA vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Loar Holdings's current stock value. Our valuation model uses many indicators to compare Loar Holdings value to that of its competitors to determine the firm's financial worth. Loar Holdings is rated below average in revenue category among its peers. It also is rated below average in ebitda category among its peers totaling about 0.35 of EBITDA per Revenue. The ratio of Revenue to EBITDA for Loar Holdings is roughly 2.82 . At this time, Loar Holdings' Total Revenue is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Loar Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Loar Revenue vs. Competition
Loar Holdings is rated below average in revenue category among its peers. Market size based on revenue of Industrials industry is now estimated at about 54.03 Billion. Loar Holdings maintains roughly 317.48 Million in revenue contributing less than 1% to equities under Industrials industry.
Loar EBITDA vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Loar Holdings |
| = | 317.48 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Loar Holdings |
| = | 112.53 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Loar EBITDA Comparison
Loar Holdings is currently under evaluation in ebitda category among its peers.
Loar Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Loar Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Loar Holdings will eventually generate negative long term returns. The profitability progress is the general direction of Loar Holdings' change in net profit over the period of time. It can combine multiple indicators of Loar Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Net Interest Income | -67.1 M | -70.4 M | |
| Operating Income | 69.5 M | 59.9 M | |
| Net Loss | -4.6 M | -4.8 M | |
| Income Before Tax | 2.4 M | 2.6 M | |
| Total Other Income Expense Net | -67.1 M | -70.4 M | |
| Net Loss | -4.6 M | -4.8 M | |
| Income Tax Expense | 7.1 M | 3.8 M | |
| Net Loss | (0.05) | (0.06) | |
| Income Quality | (2.78) | (2.92) | |
| Net Loss | (1.89) | (1.80) |
Loar Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Loar Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Loar Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Loar Holdings' important profitability drivers and their relationship over time.
Loar Holdings Profitability Trends
Loar Holdings profitability trend refers to the progression of profit or loss within a business. An upward trend means that Loar Holdings' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Loar Holdings' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Loar Holdings Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Loar Holdings different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Loar Holdings in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Loar Holdings' future profitability.
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Use Loar Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Loar Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Loar Holdings will appreciate offsetting losses from the drop in the long position's value.Loar Holdings Pair Trading
Loar Holdings Pair Trading Analysis
The ability to find closely correlated positions to Loar Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Loar Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Loar Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Loar Holdings to buy it.
The correlation of Loar Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Loar Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Loar Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Loar Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Loar Holdings position
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Additional Tools for Loar Stock Analysis
When running Loar Holdings' price analysis, check to measure Loar Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Loar Holdings is operating at the current time. Most of Loar Holdings' value examination focuses on studying past and present price action to predict the probability of Loar Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Loar Holdings' price. Additionally, you may evaluate how the addition of Loar Holdings to your portfolios can decrease your overall portfolio volatility.