Is HLIO a high-quality business?

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

What is Helios Technologies, Inc.'s AlphaQuality grade?

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

HLIO - Helios Technologies, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $82.67 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C- 47.7 / 100 composite

Composite Grade

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

Profitability

Weight: 25%

D 34.9

5yr Avg ROIC 8.0% 50/100
Operating Margin Trend -2.40 pp/yr 0/100

Capital Efficiency

Weight: 15%

C- 47.7

5yr Avg ROE 7.0% 45/100
5yr Share-Count CAGR 0.6% 52/100

Growth Quality

Weight: 25%

F 20.2

5yr Revenue CAGR -0.9% 18/100
5yr EPS CAGR -18.1% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

B+ 78.8

5yr FCF Margin 9.6% 68/100
5yr FCF/NI Conversion 1.47x 91/100

Balance Sheet

Weight: 10%

A- 81.7

Net Debt / EBITDA 0.26x 92/100
Interest Coverage (EBIT/Int) 3.85x 53/100
Altman Z-Score 4.25 96/100

Stability

Weight: 5%

C 53.3

EPS Volatility (σ/μ) 0.55 26/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 2/5 60/100

3 of 3 gurus held; 2 new buys; 1 added.

Holders: 3 +3
Avg Δ position: —
New buys: 2
Full exits: 0

Dalio new
Wood new
Cooperman increased

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.