Is ACHC a high-quality business?

AlphaMadera's AlphaQuality grade scores Acadia Healthcare Company, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ACHC compares to a Buffett-style quality bar.

What is Acadia Healthcare Company, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ACHC based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ACHC a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ACHC - Acadia Healthcare Company, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $25.59 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 27.7 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power business.

Grade overrides the 27.7 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

F 15.4

5yr Avg ROIC 1.3% 17/100
Operating Margin Trend -1.38 pp/yr 12/100

Capital Efficiency

Weight: 15%

F 24.0

5yr Avg ROE -4.2% 2/100
5yr Share-Count CAGR -0.0% 65/100

Growth Quality

Weight: 15%

A- 81.7

5yr Revenue CAGR 9.4% 78/100
5yr EPS CAGR 9.8% 75/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 2.2

5yr FCF Margin -4.2% 4/100
5yr FCF/NI Conversion -0.40x 0/100

Balance Sheet

Weight: 20%

F 1.3

Net Debt / EBITDA 10.00x 0/100
Interest Coverage (EBIT/Int) -6.68x 0/100
Altman Z-Score 0.34 5/100

Stability

Weight: 15%

C 54.2

EPS Volatility (σ/μ) 0.53 28/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

4 of 5 gurus held; 1 new buy; 3 added; 2 full exits.

Holders: 4 -1
Avg Δ position: +36.3%
New buys: 1
Full exits: 2

Soros new
Dalio sold -100%
Laffont sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.