Is ADUS a high-quality business?

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

What is Addus HomeCare Corporation's AlphaQuality grade?

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

ADUS - Addus HomeCare Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $122.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B- 66.7 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

C- 48.0

5yr Avg ROIC 5.5% 37/100
Operating Margin Trend +0.59 pp/yr 73/100

Capital Efficiency

Weight: 15%

D- 31.0

5yr Avg ROE 6.0% 40/100
5yr Share-Count CAGR 3.5% 15/100

Growth Quality

Weight: 25%

A 90.9

5yr Revenue CAGR 13.3% 87/100
5yr EPS CAGR 16.7% 90/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

B+ 76.0

5yr FCF Margin 8.2% 63/100
5yr FCF/NI Conversion 1.42x 92/100

Balance Sheet

Weight: 10%

A 91.1

Net Debt / EBITDA 0.83x 87/100
Interest Coverage (EBIT/Int) 14.30x 91/100
Altman Z-Score 4.69 98/100

Stability

Weight: 5%

C+ 59.1

EPS Volatility (σ/μ) 0.57 24/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

1 of 2 gurus held; 2 full exits.

Holders: 1 -1
Avg Δ position: 0.0%
New buys: 0
Full exits: 2

Greenblatt sold -100%
Wood sold -100%

How this is calculated

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

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