Is PR a high-quality business?

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

What is Permian Resources Corporation's AlphaQuality grade?

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

PR - Permian Resources Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $22.29 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

C+ 60.5 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

D- 30.4

5yr Avg ROIC 6.7% 43/100
Operating Margin Trend -2.63 pp/yr 0/100

Capital Efficiency

Weight: 10%

F 25.8

5yr Avg ROE 5.9% 40/100
5yr Share-Count CAGR 24.9% 0/100

Growth Quality

Weight: 5%

A+ 100.0

5yr Revenue CAGR 48.9% 100/100
5yr EPS CAGR 29.2% 100/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 25%

A- 84.6

5yr FCF Margin 15.4% 83/100
5yr FCF/NI Conversion 0.87x 87/100

Balance Sheet

Weight: 25%

B- 68.5

Net Debt / EBITDA 0.96x 85/100
Interest Coverage (EBIT/Int) 5.89x 69/100
Altman Z-Score 1.90 38/100

Stability

Weight: 20%

C- 50.0

EPS Volatility (σ/μ) 0.64 19/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

3 of 3 gurus held; 2 added; 1 trimmed.

Holders: 3
Avg Δ position: +359.5%
New buys: 0
Full exits: 0

Greenblatt increased +864%
Cooperman increased +242%
Wood decreased -28%

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 (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — 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.