Is HELE a high-quality business?

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

What is Helen of Troy Limited's AlphaQuality grade?

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

HELE - Helen of Troy Limited

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $22.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 25.1 / 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%

F 16.6

5yr Avg ROIC 1.9% 20/100
Operating Margin Trend -1.53 pp/yr 9/100

Capital Efficiency

Weight: 15%

D- 29.2

5yr Avg ROE -6.0% 0/100
5yr Share-Count CAGR -1.5% 84/100

Growth Quality

Weight: 15%

F 8.2

5yr Revenue CAGR -5.3% 9/100
5yr EPS CAGR -16.3% 0/100
Revenue-Growth Years (5) 1/5 20/100

Cash Generation

Weight: 15%

C+ 59.7

5yr FCF Margin 5.9% 54/100
5yr FCF/NI Conversion 0.70x 67/100

Balance Sheet

Weight: 20%

F 3.8

Net Debt / EBITDA 10.00x 0/100
Interest Coverage (EBIT/Int) -13.53x 0/100
Altman Z-Score 1.01 15/100

Stability

Weight: 15%

D+ 42.5

EPS Volatility (σ/μ) 0.32 54/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 4/5 20/100

2 of 2 gurus held; 2 added.

Holders: 2
Avg Δ position: +50.1%
New buys: 0
Full exits: 0

Wood increased +98%
Cooperman increased +2%

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.