Is KLG a high-quality business?

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

What is WK Kellogg Co's AlphaQuality grade?

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

KLG - WK Kellogg Co

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $17.75 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C 52.0 / 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%

C+ 58.2

5yr Avg ROIC 11.5% 67/100
Operating Margin Trend -0.38 pp/yr 37/100

Capital Efficiency

Weight: 15%

A- 85.7

5yr Avg ROE 31.6% 100/100
5yr Share-Count CAGR 0.3% 59/100

Growth Quality

Weight: 15%

F 15.7

5yr Revenue CAGR -1.4% 17/100
5yr EPS CAGR -20.9% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

C 51.7

5yr FCF Margin 2.6% 38/100
5yr FCF/NI Conversion 0.71x 69/100

Balance Sheet

Weight: 20%

C- 47.7

Net Debt / EBITDA 3.15x 47/100
Interest Coverage (EBIT/Int) 3.83x 53/100
Altman Z-Score 2.03 42/100

Stability

Weight: 15%

C 52.2

EPS Volatility (σ/μ) 0.38 46/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 2/5 60/100

2 of 2 gurus held; 2 new buys.

Holders: 2
Avg Δ position: —
New buys: 2
Full exits: 0

Cooperman new
Greenblatt new

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.