Is PCG a high-quality business?

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

What is PG&E Corporation's AlphaQuality grade?

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

PCG - PG&E Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $22.67 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D 36.5 / 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%

C- 50.8

5yr Avg ROIC 3.9% 30/100
Operating Margin Trend +2.43 pp/yr 100/100

Capital Efficiency

Weight: 15%

D 33.5

5yr Avg ROE 5.7% 38/100
5yr Share-Count CAGR 2.6% 25/100

Growth Quality

Weight: 15%

B 71.1

5yr Revenue CAGR 4.8% 59/100
5yr EPS CAGR 12.0% 82/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 0.0

5yr FCF Margin -19.1% 0/100
5yr FCF/NI Conversion -1.87x 0/100

Balance Sheet

Weight: 20%

F 11.5

Net Debt / EBITDA 6.14x 6/100
Interest Coverage (EBIT/Int) 1.61x 22/100
Altman Z-Score 0.54 8/100

Stability

Weight: 15%

C 55.3

EPS Volatility (σ/μ) 0.54 27/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 1/5 80/100

5 of 5 gurus held; 1 new buy; 3 trimmed; 2 full exits.

Holders: 5
Avg Δ position: -17.8%
New buys: 1
Full exits: 2

Loeb sold -100%
Dalio new
Druckenmiller sold -100%

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.