Is AXON a high-quality business?

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

What is Axon Enterprise, Inc.'s AlphaQuality grade?

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

AXON - Axon Enterprise, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $653.89 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C 55.4 / 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%

C- 46.8

5yr Avg ROIC 2.8% 24/100
Operating Margin Trend +2.92 pp/yr 100/100

Capital Efficiency

Weight: 15%

F 21.8

5yr Avg ROE 4.7% 34/100
5yr Share-Count CAGR 10.9% 0/100

Growth Quality

Weight: 25%

B- 65.4

5yr Revenue CAGR 33.9% 100/100
5yr EPS CAGR -9.4% 1/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

B+ 77.2

5yr FCF Margin 10.1% 70/100
5yr FCF/NI Conversion 0.86x 86/100

Balance Sheet

Weight: 10%

B- 67.8

Net Debt / EBITDA 1.03x 84/100
Interest Coverage (EBIT/Int) 1.20x 16/100
Altman Z-Score 6.29 100/100

Stability

Weight: 5%

D 35.0

EPS Volatility (σ/μ) 1.17 0/100
Piotroski F-Score 3 33/100
Negative-Revenue Years (5) 0/5 100/100

3 of 4 gurus held; 3 trimmed; 1 full exit.

Holders: 3 -1
Avg Δ position: -28.2%
New buys: 0
Full exits: 1

Laffont sold -100%
Wood decreased -44%
Cooperman decreased -30%

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.