Is PG a high-quality business?

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

What is The Procter & Gamble Company's AlphaQuality grade?

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

PG - The Procter & Gamble Company

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $161.88 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

A- 81.0 / 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+ 77.8

5yr Avg ROIC 17.6% 86/100
Operating Margin Trend +0.11 pp/yr 58/100

Capital Efficiency

Weight: 15%

A+ 94.2

5yr Avg ROE 28.7% 100/100
5yr Share-Count CAGR -1.4% 83/100

Growth Quality

Weight: 15%

C 56.1

5yr Revenue CAGR 2.6% 42/100
5yr EPS CAGR 4.3% 50/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

A 92.3

5yr FCF Margin 18.1% 87/100
5yr FCF/NI Conversion 0.99x 99/100

Balance Sheet

Weight: 20%

A 92.7

Net Debt / EBITDA 1.08x 84/100
Interest Coverage (EBIT/Int) 23.23x 100/100
Altman Z-Score 5.34 100/100

Stability

Weight: 15%

B 70.8

EPS Volatility (σ/μ) 0.35 50/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

5 of 6 gurus held; 2 added; 3 trimmed; 1 full exit.

Holders: 5 -1
Avg Δ position: +21.3%
New buys: 0
Full exits: 1

Laffont sold -100%
Wood increased +129%
Cooperman decreased -15%

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.