Is LTH a high-quality business?

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

What is Life Time Group Holdings, Inc.'s AlphaQuality grade?

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

LTH - Life Time Group Holdings, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $41.40 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power 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: 20%

D+ 40.6

5yr Avg ROIC 1.0% 15/100
Operating Margin Trend +11.48 pp/yr 100/100

Capital Efficiency

Weight: 15%

F 10.7

5yr Avg ROE 0.2% 11/100
5yr Share-Count CAGR 4.0% 10/100

Growth Quality

Weight: 15%

A+ 100.0

5yr Revenue CAGR 22.8% 100/100
5yr EPS CAGR 111.8% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 0.0

5yr FCF Margin -11.4% 0/100
5yr FCF/NI Conversion -0.92x 0/100

Balance Sheet

Weight: 20%

D 36.5

Net Debt / EBITDA 8.38x 0/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 1.44 26/100

Stability

Weight: 15%

C 51.9

EPS Volatility (σ/μ) 0.99 1/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 3 trimmed.

Holders: 3
Avg Δ position: -58.1%
New buys: 0
Full exits: 0

Cooperman decreased -89%
Wood decreased -65%
Greenblatt decreased -20%

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.