Is LNG a high-quality business?

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

What is Cheniere Energy, Inc.'s AlphaQuality grade?

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

LNG - Cheniere Energy, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $256.86 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B 69.4 / 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%

B- 64.7

5yr Avg ROIC 15.7% 82/100
Operating Margin Trend -0.81 pp/yr 25/100

Capital Efficiency

Weight: 15%

A+ 98.6

5yr Avg ROE 44.3% 100/100
5yr Share-Count CAGR -3.4% 96/100

Growth Quality

Weight: 15%

B- 66.2

5yr Revenue CAGR 2.7% 43/100
5yr EPS CAGR 62.3% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

A- 84.9

5yr FCF Margin 19.6% 89/100
5yr FCF/NI Conversion 2.04x 79/100

Balance Sheet

Weight: 20%

B- 64.3

Net Debt / EBITDA 2.42x 62/100
Interest Coverage (EBIT/Int) 9.74x 84/100
Altman Z-Score 2.13 45/100

Stability

Weight: 15%

D+ 41.7

EPS Volatility (σ/μ) 1.03 0/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 3 added; 1 trimmed.

Holders: 4
Avg Δ position: +2729.0%
New buys: 0
Full exits: 0

Cooperman increased +10640%
Greenblatt increased +162%
Dalio increased +160%

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.