Is O a high-quality business?

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

What is Realty Income Corporation's AlphaQuality grade?

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

O - Realty Income Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $66.86 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

B- 66.6 / 100 composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

A+ 96.4

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 61.4% 96/100

Capital Efficiency

Weight: 15%

F 13.1

5yr Avg ROE 2.0% 20/100
5yr Share-Count CAGR 21.5% 0/100

Growth Quality

Weight: 15%

A 91.9

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 6.9% 88/100
Positive-FFO Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 19.5

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 0.00x 0/100
5yr FCF/NI 3.51x 65/100

Balance Sheet

Weight: 25%

A- 83.6

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 45.1% 75/100
Interest Coverage (EBIT/Int) 30.00x 100/100

Stability

Weight: 10%

B+ 77.3

EPS Volatility (σ/μ) 0.14 79/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 4 added.

Holders: 4
Avg Δ position: +98.7%
New buys: 0
Full exits: 0

Cooperman increased +195%
Dalio increased +127%
Greenblatt increased +48%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — FFO Margin
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr FFO/Share CAGR, Positive-FFO Years (5)
Cash Generation (15%) — AFFO Dividend Coverage, 5yr FCF/NI
Balance Sheet (25%) — Debt / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — 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.