Is XOM a high-quality business?

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

What is Exxon Mobil Corporation's AlphaQuality grade?

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

XOM - Exxon Mobil Corporation

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $164.54 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

B 73.7 / 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%

B- 64.6

5yr Avg ROIC 12.2% 71/100
Operating Margin Trend -0.08 pp/yr 50/100

Capital Efficiency

Weight: 10%

B 70.6

5yr Avg ROE 13.7% 76/100
5yr Share-Count CAGR 0.2% 62/100

Growth Quality

Weight: 5%

C 56.0

5yr Revenue CAGR 4.0% 53/100
5yr EPS CAGR 5.6% 58/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 25%

A- 84.2

5yr FCF Margin 10.8% 72/100
5yr FCF/NI Conversion 1.05x 99/100

Balance Sheet

Weight: 25%

A+ 94.7

Net Debt / EBITDA 0.48x 90/100
Interest Coverage (EBIT/Int) 69.44x 100/100
Altman Z-Score 4.30 97/100

Stability

Weight: 20%

C- 47.0

EPS Volatility (σ/μ) 0.54 27/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 2/5 60/100

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

Holders: 3
Avg Δ position: +61.7%
New buys: 0
Full exits: 1

Dalio sold -100%
Wood increased +205%
Cooperman decreased -38%

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.