Is OC a high-quality business?

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

What is Owens Corning's AlphaQuality grade?

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

OC - Owens Corning

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $141.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Cyclical & Capital-Intensive

AlphaQuality — archetype-weighted quantitative grade

C- 50.2 / 100 composite

Composite Grade

Composite of six pillars weighted for cyclical & capital-intensive businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 51.7

5yr Avg ROIC 7.4% 47/100
Operating Margin Trend +0.25 pp/yr 62/100

Capital Efficiency

Weight: 15%

A 92.4

5yr Avg ROE 18.5% 88/100
5yr Share-Count CAGR -5.4% 100/100

Growth Quality

Weight: 10%

D 38.2

5yr Revenue CAGR 4.4% 56/100
5yr EPS CAGR -8.3% 3/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

A- 84.0

5yr FCF Margin 11.9% 75/100
5yr FCF/NI Conversion 1.27x 96/100

Balance Sheet

Weight: 25%

F 18.9

Net Debt / EBITDA 5.95x 8/100
Interest Coverage (EBIT/Int) 1.41x 19/100
Altman Z-Score 1.92 39/100

Stability

Weight: 20%

D 37.1

EPS Volatility (σ/μ) 0.63 20/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 2/5 60/100

3 of 5 gurus held; 3 added; 2 full exits.

Holders: 3 -2
Avg Δ position: +72.7%
New buys: 0
Full exits: 2

Dalio sold -100%
Tepper sold -100%
Wood increased +111%

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, 5yr EPS 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), 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.