Is BLD a high-quality business?

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

What is TopBuild Corp.'s AlphaQuality grade?

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

BLD - TopBuild Corp.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $519.67 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B 71.5 / 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%

B- 63.8

5yr Avg ROIC 10.8% 64/100
Operating Margin Trend +0.27 pp/yr 63/100

Capital Efficiency

Weight: 15%

A+ 96.8

5yr Avg ROE 22.8% 96/100
5yr Share-Count CAGR -4.0% 98/100

Growth Quality

Weight: 10%

A 89.5

5yr Revenue CAGR 11.6% 84/100
5yr EPS CAGR 16.9% 91/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A- 85.2

5yr FCF Margin 11.9% 75/100
5yr FCF/NI Conversion 1.12x 98/100

Balance Sheet

Weight: 25%

B- 65.2

Net Debt / EBITDA 2.74x 55/100
Interest Coverage (EBIT/Int) 4.33x 58/100
Altman Z-Score 3.74 91/100

Stability

Weight: 20%

C- 46.7

EPS Volatility (σ/μ) 0.73 11/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 1 new buy; 2 added.

Holders: 3 +1
Avg Δ position: +158.6%
New buys: 1
Full exits: 0

Cooperman new
Wood increased +310%
Greenblatt increased +7%

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.