Is CNH a high-quality business?

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

What is CNH Industrial N.V.'s AlphaQuality grade?

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

CNH - CNH Industrial N.V.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $13.09 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C- 46.0 / 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+ 42.9

5yr Avg ROIC 6.6% 43/100
Operating Margin Trend -0.21 pp/yr 42/100

Capital Efficiency

Weight: 15%

A 90.8

5yr Avg ROE 20.1% 92/100
5yr Share-Count CAGR -2.1% 88/100

Growth Quality

Weight: 10%

F 19.3

5yr Revenue CAGR -1.8% 16/100
5yr EPS CAGR -24.6% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

B 72.3

5yr FCF Margin 5.6% 53/100
5yr FCF/NI Conversion 1.21x 97/100

Balance Sheet

Weight: 25%

F 17.4

Net Debt / EBITDA 6.96x 0/100
Interest Coverage (EBIT/Int) 1.80x 25/100
Altman Z-Score 1.93 39/100

Stability

Weight: 20%

C- 44.6

EPS Volatility (σ/μ) 0.61 21/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

Not held by any curated guru.

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.