Quality
A percentile ranking (0-to-100) that measures the excellence of a company relative to all other companies in our database. A quality ranking greater than 80 is considered excellent, 60-80 is good, and less than 20 is poor. The ranking is derived from the Raw Quality Score, which combines four factors: Financial Strength, EPS Stability, Relative Sales Growth, and Relative Profitability.
A percentile ranking (0-to-100) that measures the excellence of a company relative to all other companies in our database. A quality ranking greater than 80 is considered excellent, 60-80 is good, and less than 20 is poor.
The Quality percentile is derived from the Raw Quality Score, which combines four equally-weighted factors: *Financial Strength* (a measure of the company's financial condition based on grades from Morningstar, S&P, Value Line, and others), *EPS Stability* (a ranking of earnings consistency over time), *Relative Sales Growth* (how the company's growth forecast compares to its industry average), and *Relative Profitability* (how the company's profit margin or ROE compares to its industry average).
After calculating the Raw Quality Score for all companies, we rank them against each other to produce the Quality percentile. This relative ranking helps identify companies that excel compared to peers, regardless of industry differences in absolute scores.