Is ASIX a high-quality business?

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

What is AdvanSix Inc.'s AlphaQuality grade?

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

ASIX - AdvanSix Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $22.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

D+ 42.8 / 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%

D+ 39.8

5yr Avg ROIC 9.4% 57/100
Operating Margin Trend -2.16 pp/yr 0/100

Capital Efficiency

Weight: 15%

B 72.5

5yr Avg ROE 11.3% 66/100
5yr Share-Count CAGR -1.5% 84/100

Growth Quality

Weight: 25%

F 18.7

5yr Revenue CAGR -2.5% 15/100
5yr EPS CAGR -21.8% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

C- 46.5

5yr FCF Margin 4.1% 45/100
5yr FCF/NI Conversion 0.52x 48/100

Balance Sheet

Weight: 10%

C+ 59.9

Net Debt / EBITDA 2.46x 61/100
Interest Coverage (EBIT/Int) 7.96x 77/100
Altman Z-Score 1.90 38/100

Stability

Weight: 5%

D+ 40.8

EPS Volatility (σ/μ) 0.62 20/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 2/5 60/100

2 of 3 gurus held; 1 added; 1 trimmed; 1 full exit.

Holders: 2 -1
Avg Δ position: +7.7%
New buys: 0
Full exits: 1

Laffont sold -100%
Wood increased +29%
Cooperman decreased -14%

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.