Is KHC a high-quality business?

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

What is The Kraft Heinz Company's AlphaQuality grade?

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

KHC - The Kraft Heinz Company

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $22.78 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D 33.5 / 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%

F 15.3

5yr Avg ROIC 2.4% 22/100
Operating Margin Trend -7.12 pp/yr 0/100

Capital Efficiency

Weight: 15%

D+ 39.4

5yr Avg ROE 1.5% 18/100
5yr Share-Count CAGR -1.0% 80/100

Growth Quality

Weight: 15%

C 51.0

5yr Revenue CAGR -1.1% 18/100
5yr EPS CAGR 40.2% 100/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

B+ 79.2

5yr FCF Margin 12.2% 75/100
5yr FCF/NI Conversion 1.81x 84/100

Balance Sheet

Weight: 20%

F 1.9

Net Debt / EBITDA 10.00x 0/100
Interest Coverage (EBIT/Int) -4.75x 0/100
Altman Z-Score 0.50 7/100

Stability

Weight: 15%

D- 30.0

EPS Volatility (σ/μ) 1.03 0/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 3/5 40/100

6 of 6 gurus held; 1 new buy; 3 added; 1 trimmed.

Holders: 6 +1
Avg Δ position: +31.5%
New buys: 1
Full exits: 0

Chou new
Wood increased +168%
Cooperman decreased -91%

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.