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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C+ 58.5 / 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%
D 38.2
  • 5yr Avg ROIC 7.4% 47/100
  • Operating Margin Trend -1.13 pp/yr 17/100
Contributes 5.7 pts toward composite.

Capital Efficiency

Weight: 15%
B- 62.3
  • 5yr Avg ROE 10.3% 62/100
  • 5yr Share-Count CAGR 0.1% 64/100
Contributes 9.3 pts toward composite.

Growth Quality

Weight: 10%
C- 48.7
  • 5yr Revenue CAGR 7.3% 72/100
  • 5yr EPS CAGR -3.6% 13/100
  • Revenue-Growth Years (5) 3/5 60/100
Contributes 4.9 pts toward composite.

Cash Generation

Weight: 15%
B- 65.2
  • 5yr FCF Margin 8.0% 62/100
  • 5yr FCF/NI Conversion 0.71x 69/100
Contributes 9.8 pts toward composite.

Balance Sheet

Weight: 25%
A- 82.2
  • Net Debt / EBITDA 1.46x 78/100
  • Interest Coverage (EBIT/Int) 7.22x 74/100
  • Altman Z-Score 4.85 99/100
Contributes 20.5 pts toward composite.

Stability

Weight: 20%
D+ 41.6
  • EPS Volatility (σ/μ) 0.60 22/100
  • Piotroski F-Score 5 56/100
  • Negative-Revenue Years (5) 2/5 60/100
Contributes 8.3 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Not Followed

Not held by any curated guru.

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.