Quality rating
The Quality rating is a 0 to 100 score of how high-quality the underlying business is, beyond the strength of its balance sheet. It is distinct from the Safety score: Safety focuses on financial sturdiness and dividend safety, while Quality focuses on the durability and profitability of the business itself. This page explains what the score shows, the kinds of evidence behind it, and how to read it. The Quality score lives in the GNG Scoring and Valuation panel, which requires the Pro plan. Free and Pro Lite accounts see an upgrade prompt.
Before you begin
- Sign in on a Pro account. The score and its underlying data are returned only to Pro and above.
- Open a company page by ticker first. For the steps, see Look up a company.
What it shows
The Quality Score appears as a percentage in the Quality and Safety block, next to the Safety score.
Inputs
The score takes no input. It is precomputed per company. The Quality score blends several categories of business quality, including the following.
- Financial safety, drawing on the same sturdiness evidence as the Safety score.
- Profitability relative to industry peers.
- The strength of the company's competitive position, often called its moat.
- The consistency of its growth over time.
Profitability is judged against peers in the same industry, and GNG Research uses the profitability measure that best fits each industry rather than a single measure for every company. The exact way these categories are weighted, floored, and capped is proprietary and is not published.
Outputs and how to read them
- The Quality score runs from 0 to 100. Higher means a more profitable, more durable business.
- A high Quality score signals a company with a defensible market position and consistent fundamentals; it does not tell you whether the stock is cheap. Pair it with the Fair Value reading to find high-quality businesses trading at a discount.
- Because profitability is ranked against industry peers, a company needs comparable peers in its industry for the score to be meaningful.
Data and timing
The score is built from AlphaVantage fundamentals, industry peer rankings, and filing facts sourced through EDGAR, recomputed on a regular schedule after the close.
Use cases
- Separate genuinely great businesses from merely cheap ones.
- Pair a high Quality score with a discount to Fair Value to find quality-at-a-reasonable-price candidates.
- Compare business durability across companies in the same industry.
Limitations and disclosures
The profitability ranking depends on having comparable peers in the same industry, and the score reflects business quality only, not valuation or timing. This section presents a rating and carries the disclosure below.
GNG Research provides equity research and educational tools, not investment advice. Nothing on the platform is a recommendation to buy or sell any security. Do your own research and consider your circumstances before making any investment decision.