Is LIVN a high-quality business?

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

What is LivaNova PLC's AlphaQuality grade?

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

LIVN - LivaNova PLC

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $79.25 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

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

⚠ 3 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a platform & compounding fcf business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 25%

D 35.1

5yr Avg ROIC -1.4% 7/100
Operating Margin Trend +4.67 pp/yr 100/100

Capital Efficiency

Weight: 15%

F 12.0

5yr Avg ROE -6.4% 0/100
5yr Share-Count CAGR 1.9% 34/100

Growth Quality

Weight: 25%

A- 83.9

5yr Revenue CAGR 7.6% 73/100
5yr EPS CAGR 262.5% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

B- 68.0

5yr FCF Margin 7.7% 61/100
5yr FCF/NI Conversion 2.21x 77/100

Balance Sheet

Weight: 10%

F 11.7

Net Debt / EBITDA 10.00x 0/100
Interest Coverage (EBIT/Int) -3.48x 0/100
Altman Z-Score 2.17 47/100

Stability

Weight: 5%

C- 44.3

EPS Volatility (σ/μ) 0.76 10/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

2 of 3 gurus held; 2 trimmed; 1 full exit.

Holders: 2 -1
Avg Δ position: -62.7%
New buys: 0
Full exits: 1

Wood sold -100%
Cooperman decreased -77%
Greenblatt decreased -49%

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.