Is VIPS a high-quality business?

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

What is Vipshop Holdings Limited's AlphaQuality grade?

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

VIPS - Vipshop Holdings Limited

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $20.55 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

B- 67.4 / 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%

B 75.0

5yr Avg ROIC 12.9% 73/100
Operating Margin Trend +0.83 pp/yr 80/100

Capital Efficiency

Weight: 15%

A 89.5

5yr Avg ROE 16.6% 84/100
5yr Share-Count CAGR -7.3% 100/100

Growth Quality

Weight: 15%

C- 48.1

5yr Revenue CAGR -2.5% 15/100
5yr EPS CAGR 20.3% 95/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 15%

C+ 59.2

5yr FCF Margin 4.6% 48/100
5yr FCF/NI Conversion 0.74x 73/100

Balance Sheet

Weight: 20%

A 90.2

Net Debt / EBITDA -2.46x 100/100
Interest Coverage (EBIT/Int) 92.89x 100/100
Altman Z-Score 2.62 61/100

Stability

Weight: 15%

D- 33.0

EPS Volatility (σ/μ) 0.61 21/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 3/5 40/100

2 of 2 gurus held; 2 added.

Holders: 2
Avg Δ position: +264.2%
New buys: 0
Full exits: 0

Cooperman increased +344%
Wood increased +184%

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.