Is SFL a high-quality business?

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

What is SFL Corporation Ltd.'s AlphaQuality grade?

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

SFL - SFL Corporation Ltd.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $14.50 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C- 45.6 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

D- 27.8

5yr Avg ROIC 5.9% 40/100
Operating Margin Trend -6.78 pp/yr 0/100

Capital Efficiency

Weight: 15%

B 72.5

5yr Avg ROE 11.6% 68/100
5yr Share-Count CAGR -1.2% 81/100

Growth Quality

Weight: 25%

A- 85.9

5yr Revenue CAGR 9.8% 80/100
5yr EPS CAGR 22.5% 97/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 20%

F 0.0

5yr FCF Margin -17.1% 0/100
5yr FCF/NI Conversion -1.04x 0/100

Balance Sheet

Weight: 10%

D 36.5

Net Debt / EBITDA 5.72x 10/100
Interest Coverage (EBIT/Int) 30.00x 100/100
Altman Z-Score 0.58 9/100

Stability

Weight: 5%

C 53.8

EPS Volatility (σ/μ) 0.50 31/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 1/5 80/100

2 of 2 gurus held; 1 new buy; 1 added.

Holders: 2 +1
Avg Δ position: +354.3%
New buys: 1
Full exits: 0

Wood new
Greenblatt increased +354%

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), 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.