Is BZH a high-quality business?

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

What is Beazer Homes USA, Inc.'s AlphaQuality grade?

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

BZH - Beazer Homes USA, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $41.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

D 38.9 / 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- 32.9

5yr Avg ROIC 6.8% 44/100
Operating Margin Trend -1.63 pp/yr 7/100

Capital Efficiency

Weight: 15%

B- 66.9

5yr Avg ROE 11.0% 65/100
5yr Share-Count CAGR -0.4% 70/100

Growth Quality

Weight: 10%

D 34.7

5yr Revenue CAGR 2.6% 42/100
5yr EPS CAGR -21.5% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 19.3

5yr FCF Margin 0.8% 29/100
5yr FCF/NI Conversion 0.07x 7/100

Balance Sheet

Weight: 25%

D+ 41.6

Net Debt / EBITDA 14.03x 0/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 2.16 46/100

Stability

Weight: 20%

D 36.0

EPS Volatility (σ/μ) 0.85 6/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

1 of 1 gurus held; 1 trimmed.

Holders: 1
Avg Δ position: -43.7%
New buys: 0
Full exits: 0

Cooperman decreased -44%

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.