Is BRSL a high-quality business?

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

What is Brightstar Lottery's AlphaQuality grade?

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

BRSL - Brightstar Lottery

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $15.40 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

⚠ Negative tangible book value combined with negative free cash flow — balance sheet is impaired and operating cash generation cannot rebuild it.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%

B 69.6

5yr Avg ROIC 9.3% 57/100
Operating Margin Trend +2.63 pp/yr 100/100

Capital Efficiency

Weight: 15%

A+ 93.5

5yr Avg ROE 32.2% 100/100
5yr Share-Count CAGR -1.2% 82/100

Growth Quality

Weight: 15%

D+ 39.0

5yr Revenue CAGR -11.5% 0/100
5yr EPS CAGR 81.1% 100/100
Revenue-Growth Years (5) 1/5 20/100

Cash Generation

Weight: 15%

A- 86.2

5yr FCF Margin 20.1% 90/100
5yr FCF/NI Conversion 1.93x 82/100

Balance Sheet

Weight: 20%

D 37.3

Net Debt / EBITDA 3.18x 46/100
Interest Coverage (EBIT/Int) 3.26x 48/100
Altman Z-Score 0.57 8/100

Stability

Weight: 15%

D- 30.4

EPS Volatility (σ/μ) 0.63 19/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 4/5 20/100

Not held by any curated guru.

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.