Is TKO a high-quality business?

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

What is TKO Group Holdings, Inc.'s AlphaQuality grade?

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

TKO - TKO Group Holdings, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $234.67 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

C 52.3 / 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%

F 25.7

5yr Avg ROIC 5.3% 37/100
Operating Margin Trend -2.63 pp/yr 0/100

Capital Efficiency

Weight: 15%

F 19.3

5yr Avg ROE 3.9% 30/100
5yr Share-Count CAGR 23.6% 0/100

Growth Quality

Weight: 25%

B+ 76.6

5yr Revenue CAGR 44.2% 100/100
5yr EPS CAGR 2.0% 33/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 20%

A- 81.3

5yr FCF Margin 24.7% 95/100
5yr FCF/NI Conversion 15.51x 65/100

Balance Sheet

Weight: 10%

C 51.3

Net Debt / EBITDA 2.47x 61/100
Interest Coverage (EBIT/Int) 4.06x 56/100
Altman Z-Score 1.58 30/100

Stability

Weight: 5%

C- 48.8

EPS Volatility (σ/μ) 0.97 1/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 0/5 100/100

4 of 5 gurus held; 1 added; 3 trimmed; 1 full exit.

Holders: 4 -1
Avg Δ position: -8.9%
New buys: 0
Full exits: 1

Dalio sold -100%
Cooperman decreased -42%
Greenblatt increased +13%

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.