Is OFLX a high-quality business?

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

What is Omega Flex, Inc.'s AlphaQuality grade?

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

OFLX - Omega Flex, Inc.

Price: -- --

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 68.8 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

B- 66.9

5yr Avg ROIC 22.2% 96/100
Operating Margin Trend -2.30 pp/yr 0/100

Capital Efficiency

Weight: 15%

A 87.3

5yr Avg ROE 24.6% 99/100
5yr Share-Count CAGR 0.0% 65/100

Growth Quality

Weight: 15%

F 6.9

5yr Revenue CAGR -6.8% 6/100
5yr EPS CAGR -13.3% 0/100
Revenue-Growth Years (5) 1/5 20/100

Cash Generation

Weight: 15%

A 88.6

5yr FCF Margin 16.7% 85/100
5yr FCF/NI Conversion 0.93x 93/100

Balance Sheet

Weight: 20%

A+ 100.0

Net Debt / EBITDA -2.65x 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 12.84 100/100

Stability

Weight: 15%

C 53.1

EPS Volatility (σ/μ) 0.20 70/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 4/5 20/100

1 of 2 gurus held; 1 trimmed; 1 full exit.

Holders: 1 -1
Avg Δ position: -31.8%
New buys: 0
Full exits: 1

Wood sold -100%
Cooperman decreased -32%

How this is calculated

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

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — 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.