Is ODD a high-quality business?

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

What is Oddity Tech Ltd.'s AlphaQuality grade?

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

ODD - Oddity Tech Ltd.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $22.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

High-Growth Software

AlphaQuality — archetype-weighted quantitative grade

A- 84.8 / 100 composite

Composite Grade

Composite of six pillars weighted for high-growth software businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

A- 82.0

5yr Avg ROIC 13.3% 74/100
Operating Margin Trend +2.11 pp/yr 100/100

Capital Efficiency

Weight: 15%

B- 63.3

5yr Avg ROE 15.5% 81/100
5yr Share-Count CAGR 2.2% 30/100

Growth Quality

Weight: 35%

A+ 100.0

5yr Revenue CAGR 38.1% 100/100
5yr EPS CAGR 120.5% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

A- 85.3

5yr FCF Margin 11.5% 74/100
5yr FCF/NI Conversion 1.02x 100/100

Balance Sheet

Weight: 10%

A 89.7

Net Debt / EBITDA -2.88x 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 2.57 59/100

Stability

Weight: 5%

D 38.3

EPS Volatility (σ/μ) 1.04 0/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 0/5 100/100

2 of 2 gurus held; 1 new buy; 1 trimmed; 2 full exits.

Holders: 2
Avg Δ position: -96.0%
New buys: 1
Full exits: 2

Greenblatt sold -100%
Smith sold -100%
Wood new

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 (35%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (20%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (10%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (5%) — 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.