Is CDP a high-quality business?

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

What is COPT Defense Properties's AlphaQuality grade?

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

CDP - COPT Defense Properties

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $38.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

B- 64.3 / 100 composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 20%

B 70.2

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 41.1% 70/100

Capital Efficiency

Weight: 15%

C- 46.8

5yr Avg ROE 5.9% 39/100
5yr Share-Count CAGR 0.2% 61/100

Growth Quality

Weight: 15%

A 87.1

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 5.5% 82/100
Positive-FFO Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A 92.0

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 1.86x 97/100
5yr FCF/NI 2.00x 80/100

Balance Sheet

Weight: 25%

C- 44.1

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 59.8% 45/100
Interest Coverage (EBIT/Int) 2.80x 42/100

Stability

Weight: 10%

C 54.0

EPS Volatility (σ/μ) 0.38 46/100
Negative-Revenue Years (5) 1/5 80/100
Piotroski F-Score 4 44/100

1 of 2 gurus held; 1 trimmed; 1 full exit.

Holders: 1 -1
Avg Δ position: -41.7%
New buys: 0
Full exits: 1

Wood sold -100%
Cooperman decreased -42%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — FFO Margin
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr FFO/Share CAGR, Positive-FFO Years (5)
Cash Generation (15%) — AFFO Dividend Coverage, 5yr FCF/NI
Balance Sheet (25%) — Debt / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — EPS Volatility (σ/μ), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.