Is BECN a high-quality business?

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

What is Beacon Roofing Supply, Inc.'s AlphaQuality grade?

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

BECN - Beacon Roofing Supply, Inc.

Price: -- --

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C+ 60.1 / 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%

C- 49.1

5yr Avg ROIC 9.2% 56/100
Operating Margin Trend -0.49 pp/yr 34/100

Capital Efficiency

Weight: 15%

B- 64.8

5yr Avg ROE 15.3% 81/100
5yr Share-Count CAGR 1.8% 35/100

Growth Quality

Weight: 10%

C+ 60.9

5yr Revenue CAGR 8.5% 76/100
5yr EPS CAGR -0.6% 19/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 22.0

5yr FCF Margin 0.5% 27/100
5yr FCF/NI Conversion 0.16x 16/100

Balance Sheet

Weight: 25%

B+ 77.1

Net Debt / EBITDA 1.78x 73/100
Interest Coverage (EBIT/Int) 10.61x 86/100
Altman Z-Score 2.87 73/100

Stability

Weight: 20%

B 71.3

EPS Volatility (σ/μ) 0.29 59/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 0/5 100/100

2 of 3 gurus held; 2 new buys.

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

Cooperman new
Greenblatt new

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.