Is EPD a high-quality business?

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

What is Enterprise Products Partners L.P.'s AlphaQuality grade?

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

EPD - Enterprise Products Partners L.P.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $38.57 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 63.8 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

C 56.5

5yr Avg ROIC 10.7% 63/100
Operating Margin Trend -0.25 pp/yr 40/100

Capital Efficiency

Weight: 15%

A- 81.0

5yr Avg ROE 18.4% 88/100
5yr Share-Count CAGR -0.2% 68/100

Growth Quality

Weight: 15%

B- 63.6

5yr Revenue CAGR 6.6% 68/100
5yr EPS CAGR 6.1% 60/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

B+ 76.2

5yr FCF Margin 9.3% 67/100
5yr FCF/NI Conversion 0.87x 87/100

Balance Sheet

Weight: 20%

C- 48.9

Net Debt / EBITDA 3.35x 43/100
Interest Coverage (EBIT/Int) 5.21x 66/100
Altman Z-Score 1.94 39/100

Stability

Weight: 15%

B- 64.7

EPS Volatility (σ/μ) 0.29 59/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 2/5 60/100

2 of 2 gurus held; 2 new buys.

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

Greenblatt new
Wood 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.