Codexis Inc (CDXS) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Sep 5, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Aug 11, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the CDXS SEC filings page.
Codexis Inc (CDXS) reported $77.7M in revenue over the twelve months to Jun 30, 2026, up 35.9% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Gross-margin recovery is reducing losses, but operations still consume cash while financing increasingly supports the balance sheet.
FY2025 gross margin rose from72.6% in FY2024 to86.7% , yet operating cash flow remained negative; improved unit economics have not translated into self-funding operations. Compared with FY2024, the smaller cash deficit alongside a still-negative free-cash-flow result points to operating losses—not unusually heavy capital spending—as the central cash drain. This is a margin recovery without corresponding cash conversion: economics are improving before operating break-even.
Debt-to-equity rose from 0.4x to 0.8x as liabilities increased and equity contracted, indicating a more leveraged financing structure. The 3.8x current ratio and 48.4-month liquidity measure describe short-term resources separately from profitability, which remained negative, so liquidity and earnings are telling different stories.
Operating cash flow of
Financial Health Signals
Scored against emerging companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Codexis Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Codexis Inc held $78.2M in cash, cash equivalents and investments at the end of fiscal year 2025, and its operations used $19.4M of cash that year. Cash Runway ranks emerging companies on the size of that balance against the outflow behind it, and Codexis Inc scores 67/100 among other emerging companies.
Codexis Inc had 91M shares outstanding at the end of fiscal year 2025, against 83M in fiscal year 2024. Dilution ranks emerging companies on how fast that count has grown over three years, where a slower rise is the better one, and Codexis Inc scores 42/100 among other emerging companies.
Codexis Inc spent $52.3M on research and development in fiscal year 2025, which was 46.7% of its operating costs that year. R&D Intensity ranks emerging companies on the share of operating costs that goes into research, and Codexis Inc scores 76/100 among other emerging companies.
Codexis Inc reported revenue of $70.4M in fiscal year 2025, against $59.3M in fiscal year 2024. Revenue Progress ranks emerging companies on the three-year path of that line, and Codexis Inc scores 44/100 among other emerging companies.
Codexis Inc's operations used $19.4M of cash in fiscal year 2025, against $49.4M used in fiscal year 2024. Burn Trend ranks emerging companies on which way that figure has moved over three years, and Codexis Inc scores 76/100 among other emerging companies.
Codexis Inc's cash, cash equivalents and investments came to $78.2M at the end of fiscal year 2025, against $97.3M of total liabilities. Balance Sheet ranks emerging companies on that comparison, and Codexis Inc scores 54/100 among other emerging companies.
Codexis Inc scores -4.64, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($159.9M) relative to total liabilities ($97.3M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Codexis Inc passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), both operating efficiency signals pass.
Codexis Inc reported a net loss of $44.0M while operations used $19.4M of cash. With neither figure positive, the ratio between the two carries no quality signal.
Key Financial Metrics
Earnings & Revenue
Codexis Inc generated $14.9M in revenue in Q2 2026. This represents a decrease of 2.7% from the same quarter a year earlier. Against the prior quarter it is down 2.2%.
Codexis Inc's EBITDA was -$10.0M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 13.2% from the same quarter a year earlier. Against the prior quarter it is down 48.5%.
Codexis Inc reported -$12.0M in net income in Q2 2026. This represents an increase of 9.5% from the same quarter a year earlier. Against the prior quarter it is down 37.9%.
Codexis Inc earned -$0.13 per diluted share (EPS) in Q2 2026. This represents an increase of 18.8% from the same quarter a year earlier. Against the prior quarter it is down 30.0%.
Cash & Balance Sheet
Codexis Inc recorded an outflow of $10.5M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents an increase of 48.5% from the same quarter a year earlier. Against the prior quarter it is up 20.9%.
Codexis Inc held $27.2M in cash against $33.8M in long-term debt as of Q2 2026.
Not reported for Q2 2026.
Margins & Returns
Codexis Inc's gross margin was 76.4% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is down 9.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 10.0 percentage points.
Codexis Inc's operating margin was -75.3% in Q2 2026, reflecting core business profitability. This is up 8.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 22.5 percentage points.
Codexis Inc's net profit margin was -80.5% in Q2 2026, showing the share of revenue converted to profit. This is up 6.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 23.4 percentage points.
Codexis Inc's ROE was -36.4% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 12.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 16.3 percentage points.
Capital Allocation
Codexis Inc invested $11.7M in research and development in Q2 2026. This represents a decrease of 15.0% from the same quarter a year earlier. Against the prior quarter it is up 2.2%.
Codexis Inc invested $898K in capex in Q2 2026, funding long-term assets and infrastructure. This represents a decrease of 64.3% from the same quarter a year earlier. Against the prior quarter it is up 410.2%.
Not reported for Q2 2026.
CDXS Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $14.9M-2.7% | $15.2M+102.1% | $38.9M+81.3% | $8.6M-33.0% | $15.3M+92.1% | $7.5M-55.8% | $21.5M-19.2% | $12.8M+38.3% |
| Cost of Revenue | $3.5M+67.4% | $2.1M-24.5% | $2.0M-44.1% | $2.5M-42.9% | $2.1M-39.4% | $2.7M-43.7% | $3.7M+27.7% | $4.3M+92.0% |
| Gross Profit | $11.4M-13.8% | $13.2M+174.0% | $36.9M+107.1% | $6.1M-27.9% | $13.2M+192.9% | $4.8M-60.6% | $17.8M-24.9% | $8.5M+21.2% |
| R&D Expenses | $11.7M-15.0% | $11.4M-11.5% | $11.7M-3.1% | $13.9M+20.5% | $13.8M+20.7% | $12.9M+15.1% | $12.1M+7.7% | $11.5M-15.8% |
| SG&A Expenses | $10.9M-11.3% | $9.8M-20.8% | $11.2M-14.3% | $11.2M-17.3% | $12.3M-21.4% | $12.4M-3.9% | $13.0M+7.1% | $13.6M+10.3% |
| Operating Income | -$11.2M+12.7% | -$8.0M+60.7% | $10.6M+243.8% | -$18.9M-14.4% | -$12.9M+43.4% | -$20.5M-72.3% | -$7.3M-2703.5% | -$16.6M+48.4% |
| EBITDA | -$10.0M+13.2% | -$6.8M+65.0% | $12.0M+297.5% | -$17.6M-14.7% | -$11.6M+46.2% | -$19.3M-81.4% | -$6.1M-505.5% | -$15.4M+49.9% |
| Income Tax | $10K0.0% | $36K+227.3% | $18K+350.0% | $8K-20.0% | $10K0.0% | $11K+10.0% | $4K-88.6% | $10K+11.1% |
| Net Income | -$12.0M+9.5% | -$8.7M+57.9% | $9.6M+192.5% | -$19.6M+5.0% | -$13.3M+41.7% | -$20.7M-79.8% | -$10.4M-44.3% | -$20.6M+40.9% |
| EPS (Basic) | -$0.13+18.8% | -$0.10+60.0% | $0.12+209.1% | -$0.22+24.1% | -$0.16+50.0% | -$0.25-56.3% | -$0.11-10.0% | -$0.29+42.0% |
| EPS (Diluted) | -$0.13+18.8% | -$0.10+60.0% | $0.12+209.1% | -$0.22+24.1% | -$0.16+50.0% | -$0.25-56.3% | -$0.11-10.0% | -$0.29+42.0% |
| Diluted Shares (Avg) | 91M+6.6% | 91M+10.1% | N/A | 90M+25.3% | 85M+21.3% | 82M+18.0% | N/A | 72M+3.7% |
Not reported in any period shown, so not listed: Interest Expense.
CDXS Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $120.1M-13.2% | $129.4M+0.4% | $147.8M-0.8% | $124.0M-16.3% | $138.2M+4.7% | $128.9M-13.8% | $149.0M+9.1% | $148.2M-4.1% |
| Current Assets | $71.9M-18.9% | $79.6M+2.4% | $96.8M-2.0% | $76.2M-32.5% | $88.7M-2.9% | $77.8M-27.9% | $98.8M+5.7% | $112.9M+9.6% |
| Cash & Equivalents | $27.2M+1.5% | $36.6M+99.6% | $50.8M+163.7% | $25.4M-32.3% | $26.8M+43.9% | $18.3M-68.4% | $19.3M-70.4% | $37.5M-49.8% |
| Short-Term Investments | $27.7M-29.9% | $28.6M-31.2% | $27.4M-49.4% | $33.4M-36.8% | $39.6M-27.5% | $41.5M+50.9% | $54.2M | $52.8M |
| Inventory | $1.6M-17.6% | $2.0M+12.3% | $1.8M+1.0% | $1.9M-7.9% | $1.9M-12.9% | $1.8M-27.0% | $1.8M-33.0% | $2.1M-8.8% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $2.5M0.0% | $2.5M0.0% | $2.5M0.0% | $2.5M0.0% | $2.5M0.0% | $2.5M0.0% | $2.5M0.0% | $2.5M0.0% |
| Total Liabilities | $87.1M+5.4% | $86.1M+8.7% | $97.3M+18.5% | $85.4M+14.2% | $82.6M+17.1% | $79.3M+12.8% | $82.1M+64.3% | $74.8M+18.8% |
| Current Liabilities | $23.5M+54.3% | $14.8M-29.0% | $25.3M+7.1% | $18.5M-47.4% | $15.2M-50.1% | $20.9M-28.1% | $23.6M-34.0% | $35.1M-8.6% |
| Non-Current Liabilities | $63.6M-5.6% | $71.3M+22.2% | $72.0M+23.1% | $66.9M+68.8% | $67.4M+68.4% | $58.4M+41.6% | $58.4M+314.0% | $39.7M+61.6% |
| Long-Term Debt | $33.8M-14.1% | $40.5M+38.7% | $40.1M+38.7% | $39.7M+38.8% | $39.4M+38.8% | $29.2M+3.9% | $28.9M | $28.6M |
| Total Equity | $33.0M-40.8% | $43.2M-12.9% | $50.5M-24.5% | $38.5M-47.5% | $55.6M-9.5% | $49.6M-37.4% | $66.9M-22.7% | $73.4M-19.8% |
| Retained Earnings | -$627.5M-5.1% | -$615.5M-5.5% | -$606.8M-7.8% | -$616.4M-11.6% | -$596.8M-12.2% | -$583.5M-14.6% | -$562.8M-13.1% | -$552.4M-12.7% |
Not reported in any period shown, so not listed: Accounts Receivable.
CDXS Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$9.6M+46.3% | -$13.2M+4.7% | $20.1M+222.0% | -$7.7M+40.7% | -$18.0M-47.7% | -$13.8M-77.1% | -$16.5M-49.2% | -$13.0M+20.3% |
| Depreciation & Amortization | $1.2M-8.0% | $1.3M+7.6% | $1.4M+12.2% | $1.3M+11.3% | $1.3M+5.1% | $1.2M-4.6% | $1.2M-0.6% | $1.2M-12.7% |
| Stock-Based Compensation | $1.6M-37.5% | $1.4M-40.0% | N/A | $2.5M-7.2% | $2.5M-45.9% | $2.4M-25.0% | N/A | $2.7M+18.6% |
| Capital Expenditures | $898K-64.3% | $176K-86.0% | $520K-70.7% | $182K-81.9% | $2.5M+536.5% | $1.3M+11.1% | $1.8M+366.8% | $1.0M+48.4% |
| Free Cash Flow | -$10.5M+48.5% | -$13.3M+11.5% | $19.6M+207.3% | -$7.9M+43.6% | -$20.5M-63.0% | -$15.1M-68.8% | -$18.2M-59.8% | -$14.0M+17.6% |
| Investing Cash Flow | $175K+147.7% | -$1.1M-109.4% | $5.7M+299.5% | $6.4M+316.6% | -$367K+98.6% | $11.8M+141.2% | -$2.9M-359.3% | $1.5M+238.5% |
| Financing Cash Flow | $66K-99.8% | -$14K-101.3% | $180K-84.1% | -$111K-100.4% | $26.8M+13690.9% | $1.1M-96.3% | $1.1M | $30.3M+28161.1% |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
CDXS Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.4%-9.9pp | 86.5%+22.7pp | 94.8%+11.8pp | 71.3%+5.0pp | 86.3%+29.7pp | 63.8%-7.8pp | 83.0%-6.3pp | 66.4%-9.4pp |
| Operating Margin | -75.3%+8.6pp | -52.8% | 27.1%+61.3pp | -220.3% | -83.9% | -271.6% | -34.2%-35.3pp | -129.0% |
| Net Margin | -80.5%+6.1pp | -57.1% | 24.7%+73.0pp | -228.1% | -86.6% | -274.3% | -48.4%-21.3pp | -160.8% |
| Return on Equity | -36.4%-12.6pp | -20.1%+21.6pp | 19.0%+34.5pp | -50.9%-22.8pp | -23.9%+13.2pp | -41.7%-27.2pp | -15.5%-7.2pp | -28.1%+10.0pp |
| Return on Assets | -10.0%-0.4pp | -6.7%+9.3pp | 6.5%+13.5pp | -15.8%-1.9pp | -9.6%+7.6pp | -16.1%-8.4pp | -7.0%-1.7pp | -13.9%+8.7pp |
| Current Ratio | 3.06-2.8x | 5.36+1.6x | 3.82-0.4x | 4.12+0.9x | 5.82+2.8x | 3.720.0x | 4.18+1.6x | 3.21+0.5x |
| Debt-to-Equity | 1.03+0.3x | 0.94+0.3x | 0.79+0.4x | 1.03+0.6x | 0.71+0.2x | 0.59+0.2x | 0.43+0.4x | 0.39-0.3x |
| Asset Turnover | 0.120.0x | 0.12+0.1x | 0.26+0.1x | 0.070.0x | 0.11+0.1x | 0.06-0.1x | 0.14-0.1x | 0.090.0x |
| FCF Margin | -70.7% | -87.4% | 50.3%+135.3pp | -91.7% | -133.6% | -199.6% | -85.0%-42.0pp | -109.0% |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin, FCF Margin.
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Codexis Inc CDXS | FY2025 | $70.4M | -$44.0M | -62.5% | $159.9M | 60/100 |
| OmniAb, Inc. OABI | FY2025 | $18.7M | -$64.8M | N/A | $629.5M | 42/100 |
| Silence Therapeutics Plc SLN | FY2025 | $559K | -$88.6M | N/A | $906.8M | — |
| Vor Biopharma Inc. VOR | FY2025 | N/A | -$696.0M | N/A | $1.5B | — |
Where Codexis Inc Ranks
Frequently Asked Questions
What is Codexis Inc's annual revenue?
Codexis Inc (CDXS) reported $70.4M in total revenue for fiscal year 2025. This represents a 18.6% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Codexis Inc's revenue growing?
Codexis Inc (CDXS) revenue grew by 18.6% year-over-year, from $59.3M to $70.4M in fiscal year 2025.
Is Codexis Inc profitable?
No, Codexis Inc (CDXS) reported a net income of -$44.0M in fiscal year 2025, with a net profit margin of -62.5%.
What is Codexis Inc's EBITDA?
Codexis Inc (CDXS) had EBITDA of -$36.5M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Codexis Inc have?
As of fiscal year 2025, Codexis Inc (CDXS) had $50.8M in cash and equivalents against $40.1M in long-term debt.
What is Codexis Inc's gross margin?
Codexis Inc (CDXS) had a gross margin of 86.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Codexis Inc's operating margin?
Codexis Inc (CDXS) had an operating margin of -59.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Codexis Inc's net profit margin?
Codexis Inc (CDXS) had a net profit margin of -62.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Codexis Inc's return on equity (ROE)?
Codexis Inc (CDXS) has a return on equity of -87.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Codexis Inc's free cash flow?
Codexis Inc (CDXS) recorded an outflow of $23.8M in free cash flow during fiscal year 2025. This represents a 55.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Codexis Inc's operating cash flow?
Codexis Inc (CDXS) recorded an outflow of $19.4M in operating cash flow during fiscal year 2025, representing cash used by core business activities.
What are Codexis Inc's total assets?
Codexis Inc (CDXS) had $147.8M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Codexis Inc's capital expenditures?
Codexis Inc (CDXS) invested $4.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Codexis Inc spend on research and development?
Codexis Inc (CDXS) invested $52.3M in research and development during fiscal year 2025.
What is Codexis Inc's current ratio?
Codexis Inc (CDXS) had a current ratio of 3.82 as of fiscal year 2025, which is generally considered healthy.
What is Codexis Inc's debt-to-equity ratio?
Codexis Inc (CDXS) had a debt-to-equity ratio of 0.79 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Codexis Inc's return on assets (ROA)?
Codexis Inc (CDXS) had a return on assets of -29.8% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Codexis Inc's P/E ratio?
Codexis Inc (CDXS) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $159.9M as of Sep 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Codexis Inc's price-to-sales ratio?
Codexis Inc (CDXS) trades at 2.1x sales, its market capitalization divided by revenue of $77.7M revenue, trailing 12 months to June 30, 2026. The market capitalization is $159.9M as of Sep 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
How does Codexis Inc's liquidity compare with its operating cash outflow?
At the end of fiscal year 2025, Codexis Inc (CDXS) held $78.2M in cash, cash equivalents and investments, and reported an operating cash outflow of $19.4M over that year. Dividing the one by the other, the reported balance equals about 48 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
What is Codexis Inc's Altman Z-Score?
Codexis Inc (CDXS) has an Altman Z-Score of -4.64, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Codexis Inc's Piotroski F-Score?
Codexis Inc (CDXS) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Codexis Inc's earnings high quality?
Codexis Inc (CDXS) reported a net loss of $44.0M while operations used $19.4M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Codexis Inc?
Codexis Inc (CDXS) scores 60 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.