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: $44.25 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

B- 67.7 / 100 composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — no stock price or 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 15.6

5yr Avg ROE 2.8% 24/100
5yr Share-Count CAGR 20.7% 0/100

Growth Quality

Weight: 15%

A+ 100.0

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 10.7% 100/100
Positive-FFO Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 24.3

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 0.00x 0/100
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- 45.5

EPS Volatility (σ/μ) 0.63 20/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

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), 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.