Is NPKI a high-quality business?

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

What is NPK International Inc.'s AlphaQuality grade?

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

NPKI - NPK International Inc.

Price: -- -- | CONSENSUS: Buy DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C+ 61.1 / 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%

C- 50.3

5yr Avg ROIC 3.8% 29/100
Operating Margin Trend +4.81 pp/yr 100/100

Capital Efficiency

Weight: 10%

D- 29.6

5yr Avg ROE -8.3% 0/100
5yr Share-Count CAGR -1.6% 85/100

Growth Quality

Weight: 5%

C 51.0

5yr Revenue CAGR -18.1% 0/100
5yr EPS CAGR 57.2% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 25%

C- 49.5

5yr FCF Margin 1.9% 34/100
5yr FCF/NI Conversion 2.80x 68/100

Balance Sheet

Weight: 25%

A+ 95.8

Net Debt / EBITDA 0.44x 91/100
Interest Coverage (EBIT/Int) 3594.31x 100/100
Altman Z-Score 10.88 100/100

Stability

Weight: 20%

C+ 58.8

EPS Volatility (σ/μ) 0.41 42/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

Not held by any curated guru.

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.