Is PINS a high-quality business?

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

What is Pinterest, Inc.'s AlphaQuality grade?

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

PINS - Pinterest, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $25.66 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

High-Growth Software

AlphaQuality — archetype-weighted quantitative grade

F 30.0 / 100 pillar composite

Composite Grade

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

⚠ 2 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a high-growth software business.

Grade overrides the 30.0 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 15%

D- 28.5

5yr Avg ROIC 2.2% 21/100
Operating Margin Trend -0.16 pp/yr 45/100

Capital Efficiency

Weight: 15%

B 73.4

5yr Avg ROE 10.4% 62/100
5yr Share-Count CAGR -3.0% 95/100

Growth Quality

Weight: 35%

A- 86.3

5yr Revenue CAGR 13.1% 87/100
5yr EPS CAGR 10.4% 77/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

A 88.1

5yr FCF Margin 24.0% 94/100
5yr FCF/NI Conversion 1.95x 81/100

Balance Sheet

Weight: 10%

A+ 100.0

Net Debt / EBITDA -6.39x 100/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 5.86 100/100

Stability

Weight: 5%

D+ 41.7

EPS Volatility (σ/μ) 1.02 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

4 of 4 gurus held; 3 added; 1 trimmed.

Holders: 4
Avg Δ position: +92.4%
New buys: 0
Full exits: 0

Greenblatt increased +238%
Cooperman increased +165%
Dalio decreased -85%

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.