Is AHCO a high-quality business?

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

What is AdaptHealth Corp.'s AlphaQuality grade?

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

AHCO - AdaptHealth Corp.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $14.40 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf 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 platform & compounding fcf business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 25%

F 20.9

5yr Avg ROIC 1.2% 16/100
Operating Margin Trend -0.52 pp/yr 33/100

Capital Efficiency

Weight: 15%

F 20.0

5yr Avg ROE -5.7% 0/100
5yr Share-Count CAGR 0.4% 57/100

Growth Quality

Weight: 25%

C 52.9

5yr Revenue CAGR 7.2% 71/100
5yr EPS CAGR -3.1% 14/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

B- 67.5

5yr FCF Margin 4.2% 46/100
5yr FCF/NI Conversion 0.94x 94/100

Balance Sheet

Weight: 10%

F 23.7

Net Debt / EBITDA 3.57x 39/100
Interest Coverage (EBIT/Int) 0.86x 11/100
Altman Z-Score 0.77 12/100

Stability

Weight: 5%

C- 44.1

EPS Volatility (σ/μ) 0.67 17/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

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

Holders: 2 -1
Avg Δ position: +10.9%
New buys: 1
Full exits: 2

Greenblatt sold -100%
Laffont new
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.