Is NESR a high-quality business?

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

What is National Energy Services Reunited Corp.'s AlphaQuality grade?

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

NESR - National Energy Services Reunited Corp.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $35.33 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C 56.9 / 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%

C- 48.8

5yr Avg ROIC 3.4% 27/100
Operating Margin Trend +3.54 pp/yr 100/100

Capital Efficiency

Weight: 10%

F 19.9

5yr Avg ROE 0.8% 14/100
5yr Share-Count CAGR 2.1% 31/100

Growth Quality

Weight: 5%

A 92.0

5yr Revenue CAGR 10.9% 82/100
5yr EPS CAGR 100.0% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 25%

C+ 57.7

5yr FCF Margin 5.4% 52/100
5yr FCF/NI Conversion 4.21x 65/100

Balance Sheet

Weight: 25%

B- 67.1

Net Debt / EBITDA 0.96x 85/100
Interest Coverage (EBIT/Int) 2.86x 43/100
Altman Z-Score 2.67 64/100

Stability

Weight: 20%

C+ 58.8

EPS Volatility (σ/μ) 0.58 23/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

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

Holders: 2 +1
Avg Δ position: +438.0%
New buys: 1
Full exits: 0

Wood new
Cooperman increased +438%

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.