Is ASO a high-quality business?

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

What is Academy Sports and Outdoors, Inc.'s AlphaQuality grade?

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

ASO - Academy Sports and Outdoors, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $60.86 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C+ 58.6 / 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%

C 56.3

5yr Avg ROIC 13.6% 75/100
Operating Margin Trend -1.40 pp/yr 12/100

Capital Efficiency

Weight: 15%

A+ 99.0

5yr Avg ROE 24.1% 99/100
5yr Share-Count CAGR -7.8% 100/100

Growth Quality

Weight: 15%

F 17.3

5yr Revenue CAGR -2.8% 14/100
5yr EPS CAGR -6.1% 8/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

C+ 61.3

5yr FCF Margin 6.1% 54/100
5yr FCF/NI Conversion 0.72x 70/100

Balance Sheet

Weight: 20%

B 72.5

Net Debt / EBITDA 2.46x 61/100
Interest Coverage (EBIT/Int) 14.14x 91/100
Altman Z-Score 2.83 71/100

Stability

Weight: 15%

D+ 40.4

EPS Volatility (σ/μ) 0.68 16/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 3/5 40/100

5 of 5 gurus held; 1 new buy; 4 trimmed.

Holders: 5 +1
Avg Δ position: -46.1%
New buys: 1
Full exits: 0

Laffont new
Wood decreased -87%
Cooperman decreased -42%

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.