Is HUBS a high-quality business?

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

What is HubSpot, Inc.'s AlphaQuality grade?

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

HUBS - HubSpot, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $242.05 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

High-Growth Software

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for high-growth software businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

⚠ 3 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a high-growth software 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: 15%

D- 31.7

5yr Avg ROIC -1.4% 7/100
Operating Margin Trend +1.25 pp/yr 89/100

Capital Efficiency

Weight: 15%

F 5.2

5yr Avg ROE -5.9% 0/100
5yr Share-Count CAGR 3.5% 15/100

Growth Quality

Weight: 35%

A+ 100.0

5yr Revenue CAGR 28.8% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

B+ 75.2

5yr FCF Margin 15.9% 83/100
5yr FCF/NI Conversion 68.28x 65/100

Balance Sheet

Weight: 10%

A+ 100.0

Net Debt / EBITDA -6.14x 100/100
Interest Coverage (EBIT/Int) 80.30x 100/100
Altman Z-Score 5.30 100/100

Stability

Weight: 5%

B+ 75.8

Negative-Revenue Years (5) 0/5 100/100
Piotroski F-Score 5 56/100

4 of 4 gurus held; 1 new buy; 1 added; 2 trimmed; 1 full exit.

Holders: 4
Avg Δ position: +5.6%
New buys: 1
Full exits: 1

Dalio sold -100%
Laffont new
Greenblatt increased +87%

How this is calculated

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

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (35%) — 5yr Revenue 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%) — 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.