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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C- 49.9 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%
D- 29.1
  • 5yr Avg ROIC 4.5% 32/100
  • Operating Margin Trend -0.94 pp/yr 22/100
Contributes 7.3 pts toward composite.

Capital Efficiency

Weight: 15%
B- 66.8
  • 5yr Avg ROE 8.2% 51/100
  • 5yr Share-Count CAGR -3.7% 97/100
Contributes 10.0 pts toward composite.

Growth Quality

Weight: 25%
B 73.7
  • 5yr Revenue CAGR 6.5% 67/100
  • 5yr EPS CAGR 16.2% 90/100
  • Revenue-Growth Years (5) 3/5 60/100
Contributes 18.4 pts toward composite.

Cash Generation

Weight: 20%
F 20.2
  • 5yr FCF Margin 0.0% 25/100
  • 5yr FCF/NI Conversion 0.14x 14/100
Contributes 4.0 pts toward composite.

Balance Sheet

Weight: 10%
B+ 76.6
  • Net Debt / EBITDA 0.98x 85/100
  • Interest Coverage (EBIT/Int) 4.13x 56/100
  • Altman Z-Score 3.37 86/100
Contributes 7.7 pts toward composite.

Stability

Weight: 5%
C- 50.8
  • EPS Volatility (σ/μ) 0.53 28/100
  • Negative-Revenue Years (5) 2/5 60/100
  • Piotroski F-Score 7 78/100
Contributes 2.5 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Holding

2 of 2 gurus held; 1 added; 1 trimmed; 1 full exit.

Holders
2
Avg Δ position
-16.4%
New buys
0
Full exits
1
As of Q2 2026
How this is calculated

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

  • Profitability (25%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (25%) — 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), Negative-Revenue Years (5), Piotroski F-Score

The six pillars read only reported financial-statement fields — no analyst targets or consensus ratings. The archetype that picks which pillar formulas apply is not fully price-free, though: it can route a company to the distressed/ungradable archetype based on price vs. its 52-week high, and beta affects one classification check. A minimum of 5 fiscal years of audited statements is required. Insurers and banks are graded on their own methodology — insurers on loss ratio, its trend and stability, and premiums-to-surplus; banks on the efficiency ratio, its trend and stability, and equity-to-assets — rather than on industrial margin/ROIC signals. Distressed, highly leveraged infrastructure, asset-manager, and other financial businesses are declared ungradable rather than forced into a numeric score.