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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C+ 58.1 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 15%
C- 50.6
  • 5yr Avg ROIC 3.9% 29/100
  • Operating Margin Trend +4.81 pp/yr 100/100
Contributes 7.6 pts toward composite.

Capital Efficiency

Weight: 15%
D- 28.0
  • 5yr Avg ROE -8.5% 0/100
  • 5yr Share-Count CAGR -1.0% 80/100
Contributes 4.2 pts toward composite.

Growth Quality

Weight: 10%
F 24.6
  • 5yr Revenue CAGR -10.9% 0/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 2.5 pts toward composite.

Cash Generation

Weight: 15%
C- 49.5
  • 5yr FCF Margin 1.9% 34/100
  • 5yr FCF/NI Conversion 2.80x 68/100
Contributes 7.4 pts toward composite.

Balance Sheet

Weight: 25%
A+ 95.8
  • Net Debt / EBITDA 0.43x 91/100
  • Interest Coverage (EBIT/Int) 3666.38x 100/100
  • Altman Z-Score 8.14 100/100
Contributes 24.0 pts toward composite.

Stability

Weight: 20%
B- 62.1
  • EPS Volatility (σ/μ) 0.41 42/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 7 78/100
Contributes 12.4 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Not Followed

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 (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (10%) — 5yr Revenue CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 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), Negative-Revenue Years (5), Piotroski F-Score

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.