Is MGY a high-quality business?

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

What is Magnolia Oil & Gas Corporation's AlphaQuality grade?

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

MGY - Magnolia Oil & Gas Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $29.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

B+ 76.1 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

B- 66.4

5yr Avg ROIC 21.8% 95/100
Operating Margin Trend -6.93 pp/yr 0/100

Capital Efficiency

Weight: 10%

B+ 78.5

5yr Avg ROE 24.6% 99/100
5yr Share-Count CAGR 1.4% 40/100

Growth Quality

Weight: 5%

D+ 41.0

5yr Revenue CAGR 5.0% 60/100
5yr EPS CAGR -7.2% 6/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 25%

A+ 98.8

5yr FCF Margin 39.9% 100/100
5yr FCF/NI Conversion 1.16x 97/100

Balance Sheet

Weight: 25%

A+ 97.0

Net Debt / EBITDA 0.17x 93/100
Interest Coverage (EBIT/Int) 20.31x 100/100
Altman Z-Score 5.01 100/100

Stability

Weight: 20%

D 35.9

EPS Volatility (σ/μ) 0.76 9/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 2/5 60/100

4 of 4 gurus held; 1 new buy; 1 added; 2 trimmed.

Holders: 4 +1
Avg Δ position: +12.9%
New buys: 1
Full exits: 0

Laffont new
Wood increased +129%
Cooperman decreased -86%

How this is calculated

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

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