Columbia Sportswear Co (COLM) 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 14, 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 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the COLM SEC filings page.
Columbia Sportswear Co (COLM) reported $3.4B in revenue over the twelve months to Jun 30, 2026, down 0.1% 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).
Stable sales are being squeezed by rising overhead, weakening cash conversion, and shareholder distributions that outpace 2025 free cash flow.
Between FY2023 and FY2025, gross margin edged up from49.6% to50.5% , so product-level economics remained intact. Yet operating margin fell from8.9% to6.1% as selling, general and administrative costs rose while gross profit stayed broadly flat, indicating that overhead—not merchandise margin—is absorbing the business’s earnings.
Operating cash flow fell from
The reported debt-to-equity ratio rose from 0.5x in FY2023 to 0.7x in FY2025, while the current ratio fell from 3.4x to 2.6x, showing a less conservative balance-sheet posture. FY2025 buybacks and dividends totaled
Financial Health Signals
Scored against operating 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 Columbia Sportswear Co'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.
Columbia Sportswear Co has an operating margin of 6.1%, meaning the company retains $6 of operating profit per $100 of revenue. This results in a moderate score of 62/100, indicating healthy but not exceptional operating efficiency. This is down from 8.0% the prior year.
Columbia Sportswear Co's revenue grew a modest 0.9% year-over-year to $3.4B. This slow but positive growth earns a score of 27/100.
Columbia Sportswear Co has a moderate D/E ratio of 0.71. This balance of debt and equity financing earns a leverage score of 54/100.
With a current ratio of 2.59, Columbia Sportswear Co holds $2.59 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 72/100.
Columbia Sportswear Co converts 6.4% of revenue into free cash flow ($216.7M). This strong cash generation earns a score of 67/100.
Columbia Sportswear Co earns a strong 10.4% return on equity (ROE), meaning it generates $10 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 73/100. This is down from 12.5% the prior year.
Columbia Sportswear Co scores 4.19, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Columbia Sportswear Co passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Columbia Sportswear Co generates $1.60 in operating cash flow ($282.9M OCF vs $177.2M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Columbia Sportswear Co generated $614.4M in revenue in Q2 2026. This represents an increase of 1.5% from the same quarter a year earlier. Against the prior quarter it is down 21.1%.
Columbia Sportswear Co's EBITDA was $44.7M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 589.8% from the same quarter a year earlier. Against the prior quarter it is down 19.7%.
Columbia Sportswear Co reported $26.6M in net income in Q2 2026. This represents an increase of 360.4% from the same quarter a year earlier. Against the prior quarter it is down 22.6%.
Columbia Sportswear Co earned $0.52 per diluted share (EPS) in Q2 2026. This represents an increase of 373.7% from the same quarter a year earlier. Against the prior quarter it is down 20.0%.
Cash & Balance Sheet
Columbia Sportswear Co generated $101.6M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 324.3% from the same quarter a year earlier. Against the prior quarter it is up 212.9%.
Columbia Sportswear Co held $532.3M in cash as of Q2 2026; long-term debt is not reported for that period.
Columbia Sportswear Co paid $0.30 per share in dividends in Q2 2026. That is unchanged from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Columbia Sportswear Co's gross margin was 58.3% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 9.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 7.6 percentage points.
Columbia Sportswear Co's operating margin was 5.0% in Q2 2026, reflecting core business profitability. This is up 8.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.4 percentage points.
Columbia Sportswear Co's net profit margin was 4.3% in Q2 2026, showing the share of revenue converted to profit. This is up 6.0 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.1 percentage points.
Columbia Sportswear Co's ROE was 1.7% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 2.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.5 percentage points.
Capital Allocation
Columbia Sportswear Co repurchased no shares in Q2 2026. This represents a decrease of 100.0% from the same quarter a year earlier. Against the prior quarter it is down 100.0%.
Columbia Sportswear Co invested $13.4M in capex in Q2 2026, funding long-term assets and infrastructure. This represents a decrease of 7.6% from the same quarter a year earlier. Against the prior quarter it is up 7.4%.
Not reported for Q2 2026.
COLM 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 | $614.4M+1.5% | $779.0M+0.1% | $1.1B-2.4% | $943.4M+1.3% | $605.2M+6.1% | $778.5M+1.1% | $1.1B+3.5% | $931.8M-5.5% |
| Cost of Revenue | $255.9M-16.9% | $384.1M+0.4% | $518.5M-3.3% | $471.6M+1.6% | $308.1M+3.8% | $382.4M+0.5% | $536.0M+2.3% | $464.2M-8.2% |
| Gross Profit | $358.4M+20.6% | $395.0M-0.3% | $551.7M-1.6% | $471.8M+0.9% | $297.1M+8.7% | $396.1M+1.7% | $560.5M+4.5% | $467.6M-2.6% |
| SG&A Expenses | $332.2M+2.0% | $357.1M+0.8% | $441.5M+2.5% | $380.9M+5.4% | $325.6M+7.6% | $354.5M+1.5% | $430.6M+6.4% | $361.2M+2.8% |
| Operating Income | $30.9M+230.9% | $42.0M-9.7% | $116.7M-15.0% | $67.4M-40.1% | -$23.6M+0.9% | $46.5M+4.1% | $137.3M+21.4% | $112.5M-16.4% |
| EBITDA | $44.7M+589.8% | $55.7M-7.2% | $131.4M-13.0% | $81.6M-35.0% | -$9.1M+6.2% | $60.0M+0.4% | $151.1M | $125.6M-15.6% |
| Income Tax | $9.7M+252.2% | $13.0M+2.7% | $27.2M-27.1% | $19.0M-34.6% | -$6.4M-97.3% | $12.6M+6.6% | $37.3M+40.0% | $29.0M-11.0% |
| Net Income | $26.6M+360.4% | $34.3M-18.8% | $93.1M-9.2% | $52.0M-42.3% | -$10.2M+13.2% | $42.2M-0.1% | $102.6M+9.9% | $90.2M-12.9% |
| EPS (Basic) | $0.52+373.7% | $0.65-14.5% | $1.71-3.9% | $0.95-39.1% | -$0.19+5.0% | $0.76+7.0% | $1.78+15.6% | $1.56-8.2% |
| EPS (Diluted) | $0.52+373.7% | $0.65-13.3% | $1.71-3.9% | $0.95-39.1% | -$0.19+5.0% | $0.75+5.6% | $1.78+16.3% | $1.56-8.2% |
| Diluted Shares (Avg) | 51M-6.4% | 53M-5.9% | N/A | 55M-5.8% | 55M-7.3% | 56M-6.7% | N/A | 58M-4.9% |
Not reported in any period shown, so not listed: R&D Expenses, Interest Expense.
COLM 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 | $2.8B-3.2% | $2.6B-5.3% | $2.9B-1.6% | $2.7B-1.7% | $2.9B+4.7% | $2.7B-2.0% | $3.0B+1.2% | $2.8B-1.4% |
| Current Assets | $1.9B-1.5% | $1.6B-7.1% | $2.0B-1.8% | $1.7B-4.4% | $1.9B+2.5% | $1.7B-5.7% | $2.0B-0.3% | $1.8B-3.0% |
| Cash & Equivalents | $532.3M+24.4% | $319.3M-1.2% | $442.0M-16.9% | $228.8M-25.4% | $427.8M+25.2% | $323.3M-22.7% | $531.9M+51.8% | $306.7M+43.8% |
| Short-Term Investments | $92.3M-39.0% | $216.0M-35.5% | $348.8M+23.0% | $7.2M-89.3% | $151.2M-59.0% | $335.1M-9.3% | $283.6M-31.5% | $67.2M+4462.0% |
| Inventory | $874.8M-5.6% | $624.0M0.0% | $689.5M-0.2% | $800.4M+0.3% | $926.9M+12.6% | $623.7M+2.7% | $690.5M-7.5% | $798.2M-9.8% |
| Accounts Receivable | $271.3M-6.6% | $368.3M-5.0% | $403.2M-3.4% | $610.5M+4.9% | $290.6M+30.5% | $387.9M+5.9% | $417.5M-1.3% | $581.7M-15.3% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $5.7M-78.7% | $5.7M-78.7% | $5.7M-78.7% | $5.7M-78.7% | $26.7M0.0% | $26.7M0.0% | $26.7M0.0% | $26.7M-48.4% |
| Total Liabilities | $1.2B-3.3% | $981.6M-1.6% | $1.2B+1.9% | $1.1B+8.6% | $1.2B+32.0% | $997.6M+17.0% | $1.2B+19.5% | $973.3M+7.7% |
| Current Liabilities | $748.5M-1.7% | $527.1M-5.7% | $760.8M-0.7% | $592.7M+4.5% | $761.3M+39.8% | $558.8M+24.9% | $766.5M+28.5% | $566.9M+7.8% |
| Non-Current Liabilities | $447.8M-5.8% | $454.5M+3.6% | $457.5M+6.7% | $463.9M+14.2% | $475.2M+21.1% | $438.9M+8.2% | $428.7M+6.2% | $406.3M+7.6% |
| Total Equity | $1.6B-3.2% | $1.6B-7.5% | $1.7B-3.9% | $1.7B-7.4% | $1.7B-9.3% | $1.7B-10.5% | $1.8B-8.2% | $1.8B-5.7% |
| Retained Earnings | $1.7B-3.7% | $1.6B-7.0% | $1.8B-3.7% | $1.7B-6.3% | $1.7B-8.4% | $1.8B-9.7% | $1.8B-7.1% | $1.8B-5.4% |
Not reported in any period shown, so not listed: Long-Term Debt.
COLM 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 | $115.0M+472.8% | -$77.5M-142.0% | $616.3M+8.6% | -$270.6M-45.9% | -$30.8M-1555.1% | -$32.0M-130.0% | $567.6M-7.6% | -$185.5M-1588.1% |
| Depreciation & Amortization | $13.8M-4.5% | $13.7M+1.7% | $14.7M+6.8% | $14.2M+9.0% | $14.5M+2.8% | $13.5M-10.7% | $13.8M-12.8% | $13.0M-8.9% |
| Stock-Based Compensation | $7.1M+6.0% | $6.7M+27.5% | N/A | $5.7M-11.2% | $6.7M+5.9% | $5.2M-7.4% | N/A | $6.5M+11.2% |
| Capital Expenditures | $13.4M-7.6% | $12.4M-20.0% | $19.5M+8.0% | $16.6M+19.1% | $14.5M+11.4% | $15.6M+5.2% | $18.1M+36.3% | $13.9M-24.8% |
| Free Cash Flow | $101.6M+324.3% | -$90.0M-89.0% | $596.8M+8.6% | -$287.2M-44.0% | -$45.3M-316.8% | -$47.6M-151.8% | $549.6M-8.5% | -$199.4M-3177.2% |
| Investing Cash Flow | $112.7M-34.5% | $124.6M+302.8% | -$359.8M-53.9% | $128.5M-55.9% | $172.0M+2503.1% | -$61.4M-265.5% | -$233.8M+44.8% | $291.2M+466.0% |
| Financing Cash Flow | -$14.1M+69.8% | -$169.6M-43.0% | -$45.3M+55.5% | -$56.6M+61.1% | -$46.6M+31.1% | -$118.6M-66.3% | -$101.7M-77.6% | -$145.6M-76.8% |
| Dividends Paid | $15.4M-6.6% | $15.6M-5.9% | $16.1M-4.8% | $16.4M-4.6% | $16.4M-7.2% | $16.6M-7.4% | $16.9M-6.6% | $17.2M-5.7% |
| Share Buybacks | $0-100.0% | $150.0M+47.9% | $29.4M-66.2% | $40.0M-68.8% | $30.3M-42.3% | $101.4M+102.2% | $86.9M+120.6% | $128.2M+93.4% |
COLM 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 | 58.3%+9.3pp | 50.7%-0.2pp | 51.5%+0.4pp | 50.0%-0.2pp | 49.1%+1.1pp | 50.9%+0.3pp | 51.1%+0.5pp | 50.2%+1.5pp |
| Operating Margin | 5.0%+8.9pp | 5.4%-0.6pp | 10.9%-1.6pp | 7.1%-4.9pp | -3.9%+0.3pp | 6.0%+0.2pp | 12.5%+1.9pp | 12.1%-1.6pp |
| Net Margin | 4.3%+6.0pp | 4.4%-1.0pp | 8.7%-0.7pp | 5.5%-4.2pp | -1.7%+0.4pp | 5.4%-0.1pp | 9.3%+0.5pp | 9.7%-0.8pp |
| Return on Equity | 1.7%+2.3pp | 2.2%-0.3pp | 5.5%-0.3pp | 3.1%-1.9pp | -0.6%0.0pp | 2.5%+0.2pp | 5.8%+1.0pp | 5.0%-0.4pp |
| Return on Assets | 0.9%+1.3pp | 1.3%-0.2pp | 3.2%-0.3pp | 1.9%-1.4pp | -0.4%+0.1pp | 1.6%0.0pp | 3.5%+0.3pp | 3.3%-0.4pp |
| Current Ratio | 2.490.0x | 3.070.0x | 2.590.0x | 2.95-0.3x | 2.49-0.9x | 3.12-1.0x | 2.62-0.8x | 3.22-0.4x |
| Debt-to-Equity | 0.750.0x | 0.620.0x | 0.710.0x | 0.64+0.1x | 0.75+0.2x | 0.58+0.1x | 0.67+0.2x | 0.54+0.1x |
| Asset Turnover | 0.220.0x | 0.300.0x | 0.370.0x | 0.350.0x | 0.210.0x | 0.290.0x | 0.370.0x | 0.340.0x |
| FCF Margin | 16.5%+24.0pp | -11.6%-5.4pp | 55.8%+5.6pp | -30.4%-9.0pp | -7.5%-5.6pp | -6.1%-18.1pp | 50.1%-6.6pp | -21.4%-20.8pp |
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 |
|---|---|---|---|---|---|---|
| Columbia Sportswear Co COLM | FY2025 | $3.4B | $177.2M | 5.2% | $3.0B | 59/100 |
| Hanesbrands, Inc. HBI | FY2024 | $3.5B | -$320.4M | -9.1% | $2.3B | 37/100 |
| PVH Corp. PVH | FY2025 | $9.0B | $25.3M | 0.3% | $3.3B | 42/100 |
| Under Armour, Inc. UA | FY2026 | $5.0B | -$495.6M | -10.0% | $2.1B | 32/100 |
| Under Armour, Inc. UAA | FY2026 | $5.0B | -$495.6M | -10.0% | $2.2B | 32/100 |
| Kontoor Brands, Inc. KTB | FY2025 | $3.2B | $227.5M | 7.2% | $3.6B | 64/100 |
Where Columbia Sportswear Co Ranks
Frequently Asked Questions
What is Columbia Sportswear Co's annual revenue?
Columbia Sportswear Co (COLM) reported $3.4B in total revenue for fiscal year 2025. This represents a 0.9% 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 Columbia Sportswear Co's revenue growing?
Columbia Sportswear Co (COLM) revenue grew by 0.9% year-over-year, from $3.4B to $3.4B in fiscal year 2025.
Is Columbia Sportswear Co profitable?
Yes, Columbia Sportswear Co (COLM) reported a net income of $177.2M in fiscal year 2025, with a net profit margin of 5.2%.
What is Columbia Sportswear Co's EBITDA?
Columbia Sportswear Co (COLM) had EBITDA of $263.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Columbia Sportswear Co's gross margin?
Columbia Sportswear Co (COLM) had a gross margin of 50.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Columbia Sportswear Co's operating margin?
Columbia Sportswear Co (COLM) had an operating margin of 6.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Columbia Sportswear Co's net profit margin?
Columbia Sportswear Co (COLM) had a net profit margin of 5.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Columbia Sportswear Co pay dividends?
Yes, Columbia Sportswear Co (COLM) paid $1.20 per share in dividends during fiscal year 2025.
What is Columbia Sportswear Co's return on equity (ROE)?
Columbia Sportswear Co (COLM) has a return on equity of 10.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Columbia Sportswear Co's free cash flow?
Columbia Sportswear Co (COLM) generated $216.7M in free cash flow during fiscal year 2025. This represents a -49.7% 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 Columbia Sportswear Co's operating cash flow?
Columbia Sportswear Co (COLM) generated $282.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Columbia Sportswear Co's total assets?
Columbia Sportswear Co (COLM) had $2.9B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Columbia Sportswear Co's capital expenditures?
Columbia Sportswear Co (COLM) invested $66.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Columbia Sportswear Co's current ratio?
Columbia Sportswear Co (COLM) had a current ratio of 2.59 as of fiscal year 2025, which is generally considered healthy.
What is Columbia Sportswear Co's debt-to-equity ratio?
Columbia Sportswear Co (COLM) had a debt-to-equity ratio of 0.71 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Columbia Sportswear Co's return on assets (ROA)?
Columbia Sportswear Co (COLM) had a return on assets of 6.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Columbia Sportswear Co's P/E ratio?
Columbia Sportswear Co (COLM) trades at 14.3x earnings, its market capitalization divided by net income of $206.0M net income, trailing 12 months to June 30, 2026. The market capitalization is $3.0B as of Sep 14, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Columbia Sportswear Co's price-to-sales ratio?
Columbia Sportswear Co (COLM) trades at 0.9x sales, its market capitalization divided by revenue of $3.4B revenue, trailing 12 months to June 30, 2026. The market capitalization is $3.0B as of Sep 14, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Columbia Sportswear Co's Altman Z-Score?
Columbia Sportswear Co (COLM) has an Altman Z-Score of 4.19, placing it in the Safe Zone (low 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 Columbia Sportswear Co's Piotroski F-Score?
Columbia Sportswear Co (COLM) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 Columbia Sportswear Co's earnings high quality?
Columbia Sportswear Co (COLM) has an earnings quality ratio of 1.60x, considered cash-backed (high quality). 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 Columbia Sportswear Co?
Columbia Sportswear Co (COLM) scores 59 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), 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.