Is VTLE a high-quality business?

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

What is Vital Energy, Inc.'s AlphaQuality grade?

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

VTLE - Vital Energy, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $23.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

D- 28.5 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C- 45.9

5yr Avg ROIC 2.5% 23/100
Operating Margin Trend +23.72 pp/yr 100/100

Capital Efficiency

Weight: 10%

F 16.7

5yr Avg ROE 3.1% 26/100
5yr Share-Count CAGR 33.2% 0/100

Growth Quality

Weight: 5%

A 92.0

5yr Revenue CAGR 30.3% 100/100
5yr EPS CAGR 82.6% 100/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 25%

F 0.0

5yr FCF Margin -23.8% 0/100
5yr FCF/NI Conversion -1.79x 0/100

Balance Sheet

Weight: 25%

F 16.7

Net Debt / EBITDA 3.64x 37/100
Interest Coverage (EBIT/Int) -0.30x 0/100
Altman Z-Score -0.79 0/100

Stability

Weight: 20%

C 55.5

EPS Volatility (σ/μ) 0.38 46/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

Not enough curated-guru data to call a flow.

Cooperman sold -100%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — 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.