Is UPMMY a high-quality business?

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

What is UPM-Kymmene Oyj's AlphaQuality grade?

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

UPMMY - UPM-Kymmene Oyj

Price: -- -- | CONSENSUS: Hold DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C- 45.0 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

F 25.8

5yr Avg ROIC 5.4% 37/100
Operating Margin Trend -3.35 pp/yr 0/100

Capital Efficiency

Weight: 15%

C+ 57.2

5yr Avg ROE 8.2% 51/100
5yr Share-Count CAGR -0.2% 68/100

Growth Quality

Weight: 15%

F 16.6

5yr Revenue CAGR -0.4% 19/100
5yr EPS CAGR -21.6% 0/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

B- 67.0

5yr FCF Margin 3.6% 43/100
5yr FCF/NI Conversion 1.20x 97/100

Balance Sheet

Weight: 20%

C 53.1

Net Debt / EBITDA 3.08x 48/100
Interest Coverage (EBIT/Int) 4.48x 60/100
Altman Z-Score 2.39 54/100

Stability

Weight: 15%

C 53.1

EPS Volatility (σ/μ) 0.45 36/100
Piotroski F-Score 8 89/100
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 (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), 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.