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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 68.6 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 20%
D+ 43.9
  • 5yr Avg ROIC 10.4% 62/100
  • Operating Margin Trend -1.90 pp/yr 2/100
Contributes 8.8 pts toward composite.

Capital Efficiency

Weight: 15%
B- 67.2
  • 5yr Avg ROE 12.3% 71/100
  • 5yr Share-Count CAGR 0.2% 60/100
Contributes 10.1 pts toward composite.

Growth Quality

Weight: 15%
A- 86.5
  • 5yr Revenue CAGR 9.5% 79/100
  • 5yr EPS CAGR 30.2% 100/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 13.0 pts toward composite.

Cash Generation

Weight: 15%
A 87.1
  • 5yr FCF Margin 13.2% 78/100
  • 5yr FCF/NI Conversion 1.09x 99/100
Contributes 13.1 pts toward composite.

Balance Sheet

Weight: 20%
B+ 76.3
  • Net Debt / EBITDA 2.31x 64/100
  • Interest Coverage (EBIT/Int) 7.56x 75/100
  • Altman Z-Score 31.47 100/100
Contributes 15.3 pts toward composite.

Stability

Weight: 15%
C 55.5
  • EPS Volatility (σ/μ) 0.47 34/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 6 67/100
Contributes 8.3 pts toward composite.

Guru Flow

Curated superinvestor sentiment — not part of the AlphaQuality grade.
Not Followed

Not held by any curated guru.

How this is calculated

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

  • Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
  • Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
  • Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
  • Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
  • Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
  • Stability (15%) — 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.