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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Platform & Compounding FCF

AlphaQuality — archetype-weighted quantitative grade

B 73.1 / 100 composite

Composite Grade

Composite of six pillars weighted for platform & compounding fcf businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 25%
B+ 75.4
  • 5yr Avg ROIC 14.3% 78/100
  • Operating Margin Trend +0.51 pp/yr 70/100
Contributes 18.9 pts toward composite.

Capital Efficiency

Weight: 15%
B- 65.0
  • 5yr Avg ROE 29.8% 100/100
  • 5yr Share-Count CAGR 6.6% 0/100
Contributes 9.8 pts toward composite.

Growth Quality

Weight: 25%
A 92.0
  • 5yr Revenue CAGR 16.8% 94/100
  • 5yr EPS CAGR 21.3% 96/100
  • Revenue-Growth Years (5) 4/5 80/100
Contributes 23.0 pts toward composite.

Cash Generation

Weight: 20%
B- 62.3
  • 5yr FCF Margin 5.4% 51/100
  • 5yr FCF/NI Conversion 0.76x 75/100
Contributes 12.5 pts toward composite.

Balance Sheet

Weight: 10%
C+ 60.5
  • Net Debt / EBITDA 1.99x 70/100
  • Interest Coverage (EBIT/Int) 6.28x 70/100
  • Altman Z-Score 1.65 31/100
Contributes 6.0 pts toward composite.

Stability

Weight: 5%
C+ 58.5
  • EPS Volatility (σ/μ) 0.47 34/100
  • Negative-Revenue Years (5) 1/5 80/100
  • Piotroski F-Score 7 78/100
Contributes 2.9 pts toward composite.

Guru Flow

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

1 of 3 gurus held; 1 new buy.

Holders
1 -2
Avg Δ position
—
New buys
1
Full exits
0
As of Q4 2021
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), 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.