Is CTRE a high-quality business?

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

What is CareTrust REIT, Inc.'s AlphaQuality grade?

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

CTRE - CareTrust REIT, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $44.67 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

B+ 76.7 / 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%

A+ 100.0

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 86.8% 100/100

Capital Efficiency

Weight: 15%

F 21.5

5yr Avg ROE 4.6% 33/100
5yr Share-Count CAGR 16.5% 0/100

Growth Quality

Weight: 15%

A 92.8

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 7.3% 90/100
Positive-FFO Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A- 85.9

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 1.46x 88/100
5yr FCF/NI 1.96x 81/100

Balance Sheet

Weight: 25%

A 88.8

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 17.4% 94/100
Interest Coverage (EBIT/Int) 8.44x 79/100

Stability

Weight: 10%

C- 45.1

EPS Volatility (σ/μ) 0.64 19/100
Negative-Revenue Years (5) 1/5 80/100
Piotroski F-Score 5 56/100

4 of 4 gurus held; 2 new buys; 2 added; 1 full exit.

Holders: 4 +2
Avg Δ position: +136.4%
New buys: 2
Full exits: 1

Cooperman new
Soros sold -100%
Greenblatt new

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.