Is LXU a high-quality business?

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

What is LSB Industries, Inc.'s AlphaQuality grade?

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

LXU - LSB Industries, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $15.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C- 46.2 / 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%

D 34.4

5yr Avg ROIC 7.8% 49/100
Operating Margin Trend -5.12 pp/yr 0/100

Capital Efficiency

Weight: 15%

C- 44.9

5yr Avg ROE 11.8% 69/100
5yr Share-Count CAGR 9.7% 0/100

Growth Quality

Weight: 25%

D- 30.6

5yr Revenue CAGR 2.6% 41/100
5yr EPS CAGR -49.8% 0/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

A- 81.6

5yr FCF Margin 11.3% 73/100
5yr FCF/NI Conversion 1.44x 92/100

Balance Sheet

Weight: 10%

C- 48.6

Net Debt / EBITDA 2.35x 63/100
Interest Coverage (EBIT/Int) 2.06x 29/100
Altman Z-Score 2.14 46/100

Stability

Weight: 5%

D+ 41.7

EPS Volatility (σ/μ) 1.19 0/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 2/5 60/100

2 of 2 gurus held; 2 added.

Holders: 2
Avg Δ position: +4676.4%
New buys: 0
Full exits: 0

Cooperman increased +6490%
Wood increased +2863%

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.