Is UUGRY a high-quality business?

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

What is United Utilities Group PLC's AlphaQuality grade?

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

UUGRY - United Utilities Group PLC

Price: -- -- | CONSENSUS: Hold DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C- 48.4 / 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%

C 51.9

5yr Avg ROIC 4.3% 31/100
Operating Margin Trend +1.97 pp/yr 100/100

Capital Efficiency

Weight: 15%

C+ 61.8

5yr Avg ROE 10.1% 61/100
5yr Share-Count CAGR 0.1% 64/100

Growth Quality

Weight: 15%

A- 86.2

5yr Revenue CAGR 9.3% 78/100
5yr EPS CAGR 42.6% 100/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 20.7

5yr FCF Margin 2.5% 38/100
5yr FCF/NI Conversion -0.05x 0/100

Balance Sheet

Weight: 20%

F 19.2

Net Debt / EBITDA 6.00x 8/100
Interest Coverage (EBIT/Int) 2.62x 39/100
Altman Z-Score 1.07 17/100

Stability

Weight: 15%

C+ 59.1

EPS Volatility (σ/μ) 0.46 35/100
Piotroski F-Score 7 78/100
Negative-Revenue Years (5) 1/5 80/100

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.