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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B 72.4 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%
B+ 75.5
  • 5yr Avg ROIC 21.2% 94/100
  • Operating Margin Trend -0.53 pp/yr 33/100
Contributes 18.9 pts toward composite.

Capital Efficiency

Weight: 15%
A- 85.2
  • 5yr Avg ROE 35.4% 100/100
  • 5yr Share-Count CAGR 0.4% 58/100
Contributes 12.8 pts toward composite.

Growth Quality

Weight: 25%
C+ 60.0
  • 5yr Revenue CAGR 6.0% 65/100
  • 5yr EPS CAGR 1.6% 31/100
  • Revenue-Growth Years (5) 5/5 100/100
Contributes 15.0 pts toward composite.

Cash Generation

Weight: 20%
B- 66.6
  • 5yr FCF Margin 5.1% 50/100
  • 5yr FCF/NI Conversion 0.86x 86/100
Contributes 13.3 pts toward composite.

Balance Sheet

Weight: 10%
A+ 96.2
  • Net Debt / EBITDA 0.34x 92/100
  • Interest Coverage (EBIT/Int) 976.00x 100/100
  • Altman Z-Score 7.07 100/100
Contributes 9.6 pts toward composite.

Stability

Weight: 5%
C 55.2
  • EPS Volatility (σ/μ) 0.68 15/100
  • Negative-Revenue Years (5) 0/5 100/100
  • Piotroski F-Score 7 78/100
Contributes 2.8 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Trimming

1 of 2 gurus held; 1 trimmed; 1 full exit.

Holders
1 -1
Avg Δ position
-15.8%
New buys
0
Full exits
1
As of Q2 2026
How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

  • Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (5%) — 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.