Is KTB a high-quality business?

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

What is Kontoor Brands, Inc.'s AlphaQuality grade?

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

KTB - Kontoor Brands, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $77.20 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B+ 75.6 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

B+ 75.2

5yr Avg ROIC 14.2% 77/100
Operating Margin Trend +0.50 pp/yr 70/100

Capital Efficiency

Weight: 15%

A+ 93.7

5yr Avg ROE 40.5% 100/100
5yr Share-Count CAGR -1.3% 82/100

Growth Quality

Weight: 25%

B- 65.3

5yr Revenue CAGR 6.2% 66/100
5yr EPS CAGR 5.2% 56/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

A- 82.2

5yr FCF Margin 11.1% 73/100
5yr FCF/NI Conversion 1.35x 94/100

Balance Sheet

Weight: 10%

B 69.8

Net Debt / EBITDA 2.40x 62/100
Interest Coverage (EBIT/Int) 6.77x 72/100
Altman Z-Score 3.07 81/100

Stability

Weight: 5%

C+ 59.1

EPS Volatility (σ/μ) 0.41 43/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

3 of 3 gurus held; 3 added; 1 full exit.

Holders: 3
Avg Δ position: +107.1%
New buys: 0
Full exits: 1

Cooperman sold -100%
Wood increased +135%
Dalio increased +79%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (25%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — 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.