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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

B+ 77.3 / 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%
A 89.8
  • 5yr Avg ROIC 36.5% 100/100
  • Operating Margin Trend +0.36 pp/yr 66/100
Contributes 13.5 pts toward composite.

Capital Efficiency

Weight: 15%
A+ 98.9
  • 5yr Avg ROE 49.0% 100/100
  • 5yr Share-Count CAGR -3.8% 97/100
Contributes 14.8 pts toward composite.

Growth Quality

Weight: 10%
C- 50.3
  • 5yr Revenue CAGR 2.2% 38/100
  • 5yr EPS CAGR 6.0% 60/100
  • Revenue-Growth Years (5) 3/5 60/100
Contributes 5.0 pts toward composite.

Cash Generation

Weight: 15%
C- 50.5
  • 5yr FCF Margin 6.2% 55/100
  • 5yr FCF/NI Conversion 0.48x 45/100
Contributes 7.6 pts toward composite.

Balance Sheet

Weight: 25%
A+ 93.7
  • Net Debt / EBITDA 0.23x 93/100
  • Interest Coverage (EBIT/Int) 16.77x 95/100
Contributes 23.4 pts toward composite.

Stability

Weight: 20%
B- 64.9
  • EPS Volatility (σ/μ) 0.22 68/100
  • Negative-Revenue Years (5) 2/5 60/100
Contributes 13.0 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Accumulating

2 of 4 gurus held; 2 new buys.

Holders
2 -2
Avg Δ position
New buys
2
Full exits
0
As of Q3 2018
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)
  • Stability (20%) — EPS Volatility (σ/μ), 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.