Is CTLT a high-quality business?

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

What is Catalent, Inc.'s AlphaQuality grade?

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

CTLT - Catalent, Inc.

Price: -- --

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.

⚠ 3 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 56.0

5yr Avg ROIC 7.8% 49/100
Operating Margin Trend +0.56 pp/yr 72/100

Capital Efficiency

Weight: 15%

D 34.0

5yr Avg ROE 3.3% 26/100
5yr Share-Count CAGR 0.8% 48/100

Growth Quality

Weight: 15%

B+ 76.5

5yr Revenue CAGR 4.6% 57/100
5yr EPS CAGR 1150.0% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

C 54.7

5yr FCF Margin 1.1% 30/100
5yr FCF/NI Conversion 1.80x 84/100

Balance Sheet

Weight: 20%

F 24.1

Net Debt / EBITDA 4.85x 17/100
Interest Coverage (EBIT/Int) 2.07x 30/100
Altman Z-Score 1.60 30/100

Stability

Weight: 15%

A- 83.3

EPS Volatility (σ/μ) 0.00 100/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 0/5 100/100

2 of 4 gurus held; 2 new buys.

Holders: 2 -2
Avg Δ position: —
New buys: 2
Full exits: 0

Cooperman new
Greenblatt new

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.