Is STRD a high-quality business?

AlphaMadera's AlphaQuality grade scores MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how STRD compares to a Buffett-style quality bar.

What makes STRD 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.

STRD - MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock

Q: What is MicroStrategy Incorporated 10.00% Series A Perpetual Stride Preferred Stock's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to STRD based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

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AlphaQuality

Quantitative six-pillar business-quality grade

Banks, Insurers & Asset Managers

AlphaQuality — archetype-weighted quantitative grade

D- 29.2 / 100 composite

Composite Grade

Composite of six pillars weighted for banks, insurers & asset managers businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 25%

F 0.0

Scored using ROA (NIM proxy) — financial-archetype substitution.

5yr Avg ROA -2.1% 0/100
Operating Margin Trend -211.87 pp/yr 0/100

Capital Efficiency

Weight: 20%

F 3.4

Scored using ROTCE — financial-archetype substitution.

5yr Avg ROTCE -2.6% 5/100
5yr Share-Count CAGR 29.0% 0/100

Growth Quality

Weight: 10%

F 11.6

Scored using BVPS — financial-archetype substitution.

5yr BVPS CAGR -4.8% 1/100
5yr EPS CAGR 0.0% 20/100
Positive-EPS Years (5) 1/5 20/100

Cash Generation

Weight: 5%

F 2.2

Scored using OCF/NI — banks have no FCF concept.

5yr OCF/NI 0.03x 2/100

Balance Sheet

Weight: 30%

B 70.0

Scored using Equity/Assets — financial-archetype substitution.

Equity / Assets 82.8% 100/100
Interest Coverage (EBIT/Int) -83.80x 0/100

Stability

Weight: 10%

C+ 61.7

EPS Volatility (σ/μ) 0.00 100/100
Piotroski F-Score 2 22/100
Negative-Revenue Years (5) 3/5 40/100

Not held by any curated guru.

How this is calculated

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

Profitability (25%) — 5yr Avg ROA, Operating Margin Trend
Capital Efficiency (20%) — 5yr Avg ROTCE, 5yr Share-Count CAGR
Growth Quality (10%) — 5yr BVPS CAGR, 5yr EPS CAGR, Positive-EPS Years (5)
Cash Generation (5%) — 5yr OCF/NI
Balance Sheet (30%) — Equity / 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.