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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

F 26.5 / 100 pillar 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.

⚠ 4 of the last 5 fiscal years showed negative net income — AlphaQuality will not grade above F for persistent unprofitability in a stable earnings power business.

Grade overrides the 26.5 pillar composite because hard gates always win. Use the pillar breakdown below to see where the underlying numbers sit.

Profitability

Weight: 20%
F 6.7
  • 5yr Avg ROIC -4.2% 2/100
  • Operating Margin Trend -1.07 pp/yr 19/100
Contributes 1.3 pts toward composite.

Capital Efficiency

Weight: 15%
F 17.9
  • 5yr Avg ROE -333.2% 0/100
  • 5yr Share-Count CAGR 0.7% 51/100
Contributes 2.7 pts toward composite.

Growth Quality

Weight: 15%
B- 64.3
  • 5yr Revenue CAGR 4.6% 57/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 9.6 pts toward composite.

Cash Generation

Weight: 15%
F 0.0
  • 5yr FCF Margin -21.4% 0/100
  • 5yr FCF/NI Conversion -13.17x 0/100
Contributes 0.0 pts toward composite.

Balance Sheet

Weight: 20%
D- 30.0
  • Net Debt / EBITDA 2.16x 67/100
  • Interest Coverage (EBIT/Int) -0.18x 0/100
  • Altman Z-Score -0.09 0/100
Contributes 6.0 pts toward composite.

Stability

Weight: 15%
C- 46.3
  • EPS Volatility (σ/μ) 0.52 29/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 4 44/100
Contributes 6.9 pts toward composite.

Guru Flow

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

1 of 1 gurus held; 1 added.

Holders
1
Avg Δ position
+25.5%
New buys
0
Full exits
0
As of Q2 2026
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, 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.