Is AOSL a high-quality business?

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

What is Alpha and Omega Semiconductor Limited's AlphaQuality grade?

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

AOSL - Alpha and Omega Semiconductor Limited

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $43.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

D 38.5 / 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%

F 17.7

5yr Avg ROIC 3.1% 25/100
Operating Margin Trend -4.14 pp/yr 0/100

Capital Efficiency

Weight: 15%

C 51.2

5yr Avg ROE 10.1% 61/100
5yr Share-Count CAGR 1.9% 34/100

Growth Quality

Weight: 10%

F 26.5

5yr Revenue CAGR 1.5% 32/100
5yr EPS CAGR -55.6% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

F 15.5

5yr FCF Margin 0.6% 28/100
5yr FCF/NI Conversion -2.04x 0/100

Balance Sheet

Weight: 25%

B 70.0

Net Debt / EBITDA -2.74x 100/100
Interest Coverage (EBIT/Int) -9.53x 0/100
Altman Z-Score 5.67 100/100

Stability

Weight: 20%

D- 28.3

EPS Volatility (σ/μ) 1.72 0/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 2/5 60/100

2 of 2 gurus held; 1 new buy; 1 added; 1 full exit.

Holders: 2 +1
Avg Δ position: +74.1%
New buys: 1
Full exits: 1

Greenblatt sold -100%
Wood new
Cooperman increased +74%

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.