Is ACM a high-quality business?

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

What is Aecom's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ACM 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 ACM 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.

ACM - Aecom

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $110.57 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B- 62.8 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C+ 60.9

5yr Avg ROIC 9.8% 59/100
Operating Margin Trend +0.35 pp/yr 66/100

Capital Efficiency

Weight: 15%

B+ 78.5

5yr Avg ROE 12.1% 70/100
5yr Share-Count CAGR -2.9% 94/100

Growth Quality

Weight: 10%

B+ 77.6

5yr Revenue CAGR 4.9% 59/100
5yr EPS CAGR 38.0% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

C 54.8

5yr FCF Margin 4.3% 46/100
5yr FCF/NI Conversion 3.76x 65/100

Balance Sheet

Weight: 25%

B- 67.3

Net Debt / EBITDA 1.39x 79/100
Interest Coverage (EBIT/Int) 5.97x 69/100
Altman Z-Score 2.09 44/100

Stability

Weight: 20%

C- 45.4

EPS Volatility (σ/μ) 0.73 12/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

3 of 4 gurus held; 3 added; 1 full exit.

Holders: 3 -1
Avg Δ position: +175.6%
New buys: 0
Full exits: 1

Wood sold -100%
Dalio increased +329%
Cooperman increased +196%

How this is calculated

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

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — 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.