Is AVAV a high-quality business?

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

What is AeroVironment, Inc.'s AlphaQuality grade?

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

AVAV - AeroVironment, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $277.67 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C 55.3 / 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%

D 37.5

5yr Avg ROIC 3.9% 30/100
Operating Margin Trend +0.02 pp/yr 56/100

Capital Efficiency

Weight: 15%

F 9.5

5yr Avg ROE -1.2% 8/100
5yr Share-Count CAGR 3.7% 13/100

Growth Quality

Weight: 10%

B+ 78.4

5yr Revenue CAGR 20.1% 100/100
5yr EPS CAGR 2.8% 38/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

C 55.4

5yr FCF Margin 1.4% 32/100
5yr FCF/NI Conversion 0.84x 84/100

Balance Sheet

Weight: 25%

A+ 96.2

Net Debt / EBITDA 0.22x 93/100
Interest Coverage (EBIT/Int) 28.97x 100/100
Altman Z-Score 4.56 98/100

Stability

Weight: 20%

D+ 41.0

EPS Volatility (σ/μ) 0.62 21/100
Piotroski F-Score 2 22/100
Negative-Revenue Years (5) 0/5 100/100

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

Holders: 2
Avg Δ position: -54.3%
New buys: 0
Full exits: 1

Dalio sold -100%
Wood decreased -77%
Cooperman decreased -31%

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.