Is CPRI a high-quality business?

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

What is Capri Holdings Limited's AlphaQuality grade?

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

CPRI - Capri Holdings Limited

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $25.63 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.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power business.

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%

C 52.6

5yr Avg ROIC 13.6% 75/100
Operating Margin Trend -9.87 pp/yr 0/100

Capital Efficiency

Weight: 15%

D 35.0

5yr Avg ROE -5.7% 0/100
5yr Share-Count CAGR -6.2% 100/100

Growth Quality

Weight: 15%

F 9.4

5yr Revenue CAGR -5.9% 8/100
5yr EPS CAGR -7.6% 5/100
Revenue-Growth Years (5) 1/5 20/100

Cash Generation

Weight: 15%

B- 64.3

5yr FCF Margin 7.0% 58/100
5yr FCF/NI Conversion 0.74x 72/100

Balance Sheet

Weight: 20%

D- 27.4

Net Debt / EBITDA 11.99x 0/100
Interest Coverage (EBIT/Int) 1.41x 19/100
Altman Z-Score 3.48 87/100

Stability

Weight: 15%

C+ 61.3

EPS Volatility (σ/μ) 0.18 73/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 2/5 60/100

2 of 4 gurus held; 1 added; 1 trimmed; 2 full exits.

Holders: 2 -2
Avg Δ position: +0.9%
New buys: 0
Full exits: 2

Dalio sold -100%
Wood sold -100%
Greenblatt increased +41%

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.