Is H a high-quality business?

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

What is Hyatt Hotels Corporation's AlphaQuality grade?

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

H - Hyatt Hotels Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $191.60 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a platform & compounding fcf 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: 25%

D- 28.9

5yr Avg ROIC 1.9% 20/100
Operating Margin Trend -0.08 pp/yr 50/100

Capital Efficiency

Weight: 15%

B 70.5

5yr Avg ROE 10.2% 61/100
5yr Share-Count CAGR -2.1% 88/100

Growth Quality

Weight: 25%

A+ 96.0

5yr Revenue CAGR 49.2% 100/100
5yr EPS CAGR 75.9% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

A- 83.6

5yr FCF Margin 12.3% 76/100
5yr FCF/NI Conversion 1.37x 93/100

Balance Sheet

Weight: 10%

F 18.3

Net Debt / EBITDA 5.54x 11/100
Interest Coverage (EBIT/Int) 1.26x 17/100
Altman Z-Score 1.73 33/100

Stability

Weight: 5%

D+ 39.8

EPS Volatility (σ/μ) 0.82 7/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 3 added.

Holders: 3
Avg Δ position: +281.7%
New buys: 0
Full exits: 0

Cooperman increased +713%
Greenblatt increased +94%
Wood increased +39%

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), 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.