Is ICHR a high-quality business?

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

What is Ichor Holdings, Ltd.'s AlphaQuality grade?

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

ICHR - Ichor Holdings, Ltd.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $54.60 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

F 26.3 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

F 13.8

5yr Avg ROIC 2.0% 20/100
Operating Margin Trend -3.07 pp/yr 0/100

Capital Efficiency

Weight: 15%

F 11.8

5yr Avg ROE 0.8% 14/100
5yr Share-Count CAGR 4.3% 7/100

Growth Quality

Weight: 10%

D 34.5

5yr Revenue CAGR -3.6% 13/100
5yr EPS CAGR 2.4% 36/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 16.7

5yr FCF Margin 1.1% 30/100
5yr FCF/NI Conversion -0.03x 0/100

Balance Sheet

Weight: 25%

F 25.0

Net Debt / EBITDA 10.00x 0/100
Interest Coverage (EBIT/Int) -6.19x 0/100
Altman Z-Score 7.92 100/100

Stability

Weight: 20%

C 51.3

EPS Volatility (σ/μ) 0.43 40/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 1/5 80/100

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

Holders: 3 +2
Avg Δ position: +7.5%
New buys: 2
Full exits: 1

Dalio sold -100%
Greenblatt new
Wood new

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 (10%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — 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.