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AlphaQuality

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

C+ 61.0 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — the six pillars score only reported financials, no analyst input.

Profitability

Weight: 20%
D+ 43.7
  • 5yr Avg ROIC 7.3% 46/100
  • Operating Margin Trend -0.34 pp/yr 38/100
Contributes 8.7 pts toward composite.

Capital Efficiency

Weight: 15%
C+ 60.5
  • 5yr Avg ROE 8.1% 51/100
  • 5yr Share-Count CAGR -0.9% 79/100
Contributes 9.1 pts toward composite.

Growth Quality

Weight: 15%
C- 47.4
  • 5yr Revenue CAGR 3.8% 51/100
  • 5yr EPS CAGR -3.8% 12/100
  • Revenue-Growth Years (5) 5/5 100/100
Contributes 7.1 pts toward composite.

Cash Generation

Weight: 15%
D+ 39.6
  • 5yr FCF Margin 1.3% 32/100
  • 5yr FCF/NI Conversion 0.53x 50/100
Contributes 5.9 pts toward composite.

Balance Sheet

Weight: 20%
A+ 98.1
  • Net Debt / EBITDA -0.17x 96/100
  • Interest Coverage (EBIT/Int) 30.00x 100/100
  • Altman Z-Score 5.53 100/100
Contributes 19.6 pts toward composite.

Stability

Weight: 15%
B 70.9
  • EPS Volatility (σ/μ) 0.24 65/100
  • Negative-Revenue Years (5) 0/5 100/100
  • Piotroski F-Score 5 56/100
Contributes 10.6 pts toward composite.

Guru Flow

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

3 of 3 gurus held; 2 added; 1 trimmed.

Holders
3
Avg Δ position
+36.3%
New buys
0
Full exits
0
As of Q2 2026
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), 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.