Is AL a high-quality business?

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

What is Air Lease Corporation's AlphaQuality grade?

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

AL - Air Lease Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $65.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D+ 41.4 / 100 composite

Composite Grade

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

Profitability

Weight: 20%

D+ 43.8

5yr Avg ROIC 1.9% 20/100
Operating Margin Trend +3.63 pp/yr 100/100

Capital Efficiency

Weight: 15%

C- 50.6

5yr Avg ROE 5.8% 39/100
5yr Share-Count CAGR -0.5% 72/100

Growth Quality

Weight: 15%

A 90.6

5yr Revenue CAGR 9.6% 79/100
5yr EPS CAGR 27.0% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 0.0

5yr FCF Margin -90.1% 0/100
5yr FCF/NI Conversion -4.26x 0/100

Balance Sheet

Weight: 20%

F 9.4

Net Debt / EBITDA 7.01x 0/100
Interest Coverage (EBIT/Int) 1.71x 24/100
Altman Z-Score 0.62 9/100

Stability

Weight: 15%

B- 63.4

EPS Volatility (σ/μ) 0.42 41/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

1 of 4 gurus held; 1 added; 4 full exits.

Holders: 1 -3
Avg Δ position: +41.4%
New buys: 0
Full exits: 4

Cooperman sold -100%
Soros sold -100%
Dalio 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.