Is MIDD a high-quality business?

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

What is The Middleby Corporation's AlphaQuality grade?

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

MIDD - The Middleby Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $192.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C+ 57.4 / 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%

C 56.9

5yr Avg ROIC 10.0% 60/100
Operating Margin Trend -0.09 pp/yr 50/100

Capital Efficiency

Weight: 15%

B 72.5

5yr Avg ROE 10.6% 63/100
5yr Share-Count CAGR -2.3% 90/100

Growth Quality

Weight: 25%

F 25.6

5yr Revenue CAGR -0.4% 19/100
5yr EPS CAGR -2.9% 14/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 20%

A 87.2

5yr FCF Margin 13.1% 77/100
5yr FCF/NI Conversion 1.05x 99/100

Balance Sheet

Weight: 10%

C 55.5

Net Debt / EBITDA 2.89x 52/100
Interest Coverage (EBIT/Int) 6.14x 70/100
Altman Z-Score 2.10 44/100

Stability

Weight: 5%

C+ 60.7

EPS Volatility (σ/μ) 0.30 57/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

2 of 2 gurus held; 1 added; 1 trimmed.

Holders: 2
Avg Δ position: +194.9%
New buys: 0
Full exits: 0

Greenblatt increased +411%
Cooperman decreased -21%

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.