Is RLJ a high-quality business?

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

What is RLJ Lodging Trust's AlphaQuality grade?

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

RLJ - RLJ Lodging Trust

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $6.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Real Estate Investment Trust

AlphaQuality — archetype-weighted quantitative grade

D 37.9 / 100 composite

Composite Grade

Composite of six pillars weighted for real estate investment trust businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D- 27.9

Scored using FFO margin — REIT-archetype substitution.

FFO Margin 15.9% 28/100

Capital Efficiency

Weight: 15%

D 36.7

5yr Avg ROE -0.8% 8/100
5yr Share-Count CAGR -2.3% 89/100

Growth Quality

Weight: 15%

C- 44.6

Scored using FFO/share — REIT-archetype substitution.

5yr FFO/Share CAGR 0.4% 29/100
Positive-FFO Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 19.5

Scored using AFFO dividend coverage — REIT substitution.

AFFO Dividend Coverage 0.00x 0/100
5yr FCF/NI 4.64x 65/100

Balance Sheet

Weight: 25%

C- 49.3

Scored using Debt/Assets — REIT-archetype substitution.

Debt / Assets 48.8% 67/100
Interest Coverage (EBIT/Int) 1.18x 16/100

Stability

Weight: 10%

C- 48.5

EPS Volatility (σ/μ) 0.90 4/100
Piotroski F-Score 8 89/100
Negative-Revenue Years (5) 1/5 80/100

Not enough curated-guru data to call a flow.

Cooperman sold -100%
Wood increased

How this is calculated

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

Profitability (20%) — FFO Margin
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr FFO/Share CAGR, Positive-FFO Years (5)
Cash Generation (15%) — AFFO Dividend Coverage, 5yr FCF/NI
Balance Sheet (25%) — Debt / Assets, Interest Coverage (EBIT/Int)
Stability (10%) — 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.