Profitability
Weight: 25%- 5yr Avg ROIC 24.9% 100/100
- Operating Margin Trend +1.33 pp/yr 90/100
Quantitative six-pillar business-quality grade
AlphaQuality — archetype-weighted quantitative grade
10 of 11 gurus held; 1 new buy; 4 added; 5 trimmed; 2 full exits.
AlphaQuality grades six pillars from 0-100 and weights each by archetype:
The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.