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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 66.7 / 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%
A- 84.0
  • 5yr Avg ROIC 16.8% 84/100
  • Operating Margin Trend +0.94 pp/yr 83/100
Contributes 16.8 pts toward composite.

Capital Efficiency

Weight: 15%
A- 86.4
  • 5yr Avg ROE 20.0% 92/100
  • 5yr Share-Count CAGR -0.7% 76/100
Contributes 13.0 pts toward composite.

Growth Quality

Weight: 15%
F 16.9
  • 5yr Revenue CAGR -4.0% 12/100
  • 5yr EPS CAGR -5.0% 10/100
  • Revenue-Growth Years (5) 2/5 40/100
Contributes 2.5 pts toward composite.

Cash Generation

Weight: 15%
C+ 59.8
  • 5yr FCF Margin 4.0% 45/100
  • 5yr FCF/NI Conversion 0.78x 78/100
Contributes 9.0 pts toward composite.

Balance Sheet

Weight: 20%
A+ 100.0
  • Net Debt / EBITDA -1.98x 100/100
  • Interest Coverage (EBIT/Int) 30.00x 100/100
  • Altman Z-Score 5.85 100/100
Contributes 20.0 pts toward composite.

Stability

Weight: 15%
D 36.1
  • EPS Volatility (σ/μ) 0.84 6/100
  • Piotroski F-Score 7 78/100
  • Negative-Revenue Years (5) 3/5 40/100
Contributes 5.4 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

3 of 3 gurus held; 3 added.

Holders
3
Avg Δ position
+5.0%
New buys
0
Full exits
0
As of Q1 2026
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.