Eastern Company (EML) 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 FY2027, 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 EML SEC filings page.
Eastern Company (EML) reported $237.0M in revenue over the twelve months to Jul 4, 2026, down 11.9% 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).
Deleveraging cushions a 2025 operating slowdown, but lower volume and margin compression weakened the company's core earnings engine.
Net income swung from a$8.5M loss to a$7.1M profit in FY2025, yet the recovery was not operationally driven. Operating margin compressed from7.4% to4.3% while operating cash flow also weakened, indicating that cash conversion did not improve alongside reported earnings.
Revenue contracted
Liabilities fell
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 Eastern Company'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.
Eastern Company has an operating margin of 4.3%, meaning the company retains $4 of operating profit per $100 of revenue. This results in a moderate score of 56/100, indicating healthy but not exceptional operating efficiency. This is down from 7.4% the prior year.
Eastern Company's revenue declined 8.7% year-over-year, from $272.8M to $249.0M. This contraction results in a growth score of 24/100.
Eastern Company has a moderate D/E ratio of 0.27. This balance of debt and equity financing earns a leverage score of 37/100.
With a current ratio of 3.59, Eastern Company holds $3.59 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 85/100.
Eastern Company has a free cash flow margin of 2.0%, earning a moderate score of 39/100. The company generates positive cash flow after capital investments, but with room for improvement.
Eastern Company earns a strong 5.7% return on equity (ROE), meaning it generates $6 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 65/100. This is up from -7.1% the prior year.
Eastern Company scores 3.56, 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.
Eastern Company passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), all 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Eastern Company generates $1.24 in operating cash flow ($8.9M OCF vs $7.1M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Eastern Company earns $3.98 in operating income for every $1 of interest expense ($10.7M vs $2.7M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Eastern Company generated $61.8M in revenue in Q2 2027. This represents a decrease of 11.9% from the same quarter a year earlier. Against the prior quarter it is up 3.6%.
Eastern Company's EBITDA was $3.2M in Q2 2027, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 33.1% from the same quarter a year earlier. Against the prior quarter it is up 8.1%.
Eastern Company reported $5.6M in net income in Q2 2027. This represents an increase of 64.2% from the same quarter a year earlier. Against the prior quarter it is up 782.5%.
Eastern Company earned $0.94 per diluted share (EPS) in Q2 2027. This represents an increase of 67.9% from the same quarter a year earlier. Against the prior quarter it is up 754.5%.
Cash & Balance Sheet
Eastern Company generated $7.9M in free cash flow in Q2 2027, representing cash available after capex. This represents an increase of 164.1% from the same quarter a year earlier. Against the prior quarter it is up 204.1%.
Eastern Company held $15.1M in cash against $41.7M in long-term debt as of Q2 2027.
Eastern Company paid $0.11 per share in dividends in Q2 2027. That is unchanged from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Eastern Company's gross margin was 20.6% in Q2 2027, indicating the percentage of revenue retained after direct costs. This is down 2.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.6 percentage points.
Eastern Company's operating margin was 2.7% in Q2 2027, reflecting core business profitability. This is down 1.8 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.5 percentage points.
Eastern Company's net profit margin was 9.1% in Q2 2027, showing the share of revenue converted to profit. This is up 4.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 8.1 percentage points.
Eastern Company's ROE was 4.3% in Q2 2027, measuring profit generated per dollar of shareholder equity. This is up 1.6 percentage points from the same quarter a year earlier. Against the prior quarter it is up 3.8 percentage points.
Capital Allocation
Eastern Company invested $1.0M in research and development in Q2 2027. This represents an increase of 1.1% from the same quarter a year earlier. Against the prior quarter it is up 0.7%.
Eastern Company spent $406K on share buybacks in Q2 2027, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 43.9% from the same quarter a year earlier. Against the prior quarter it is down 4.0%.
Eastern Company invested $615K in capex in Q2 2027, funding long-term assets and infrastructure. This represents a decrease of 18.0% from the same quarter a year earlier. Against the prior quarter it is down 29.1%.
EML 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 | Q2'2710-Q | Q1'2710-Q | Q4'2610-Q | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K/A | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $61.8M-11.9% | $59.7M-5.7% | $60.2M-6.4% | $55.3M-22.4% | $70.2M-3.3% | $63.3M-2.0% | $64.3M+22.7% | $71.3M+8.6% |
| Cost of Revenue | $49.1M-8.8% | $47.7M-2.8% | $46.1M-6.1% | $43.0M-19.1% | $53.8M-0.6% | $49.1M-0.1% | $49.1M+30.5% | $53.1M+7.8% |
| Gross Profit | $12.8M-22.1% | $11.9M-15.9% | $14.0M-7.4% | $12.4M-32.0% | $16.4M-11.3% | $14.2M-8.2% | $15.2M+2.8% | $18.2M+11.1% |
| R&D Expenses | $1.0M+1.1% | $1.0M-6.7% | $928K-19.3% | $996K-7.6% | $1.0M-20.7% | $1.1M-18.4% | $1.1M-13.9% | $1.1M-24.4% |
| SG&A Expenses | $10.1M-17.5% | $9.6M-2.8% | $10.5M+4.5% | $9.6M-6.5% | $12.2M+9.4% | $9.8M-7.8% | $10.1M+62.2% | $10.3M+6.4% |
| Operating Income | $1.7M-47.2% | $1.3M-59.0% | $2.6M-34.4% | $1.7M-74.6% | $3.1M-47.7% | $3.2M-5.2% | $3.9M-45.4% | $6.8M+29.4% |
| EBITDA | $3.2M-33.1% | $3.0M-37.3% | $4.3M-22.3% | $3.4M-53.7% | $4.8M-39.0% | $4.7M-10.3% | $5.6M | $7.3M |
| Interest Expense | $581K-8.6% | $528K-14.6% | $742K+26.1% | $688K-3.0% | $636K-14.8% | $617K-8.7% | $589K+155.5% | $710K-33.5% |
| Income Tax | $1.9M+239.6% | $170K-66.4% | $171K-76.9% | $298K-77.7% | $546K-53.6% | $507K-16.7% | $740K-83.9% | $1.3M+235.5% |
| Net Income | $5.6M+64.2% | $640K-67.1% | $1.2M-10.9% | $579K+103.8% | $3.4M-1.9% | $1.9M-0.2% | $1.3M-62.7% | -$15.3M-599.6% |
| EPS (Basic) | $0.94+67.9% | $0.11-65.6% | N/A | $0.10+104.0% | $0.560.0% | $0.32+3.2% | $0.21-63.2% | -$2.47-604.1% |
| EPS (Diluted) | $0.94+67.9% | $0.11-65.6% | N/A | $0.10+104.1% | $0.560.0% | $0.32+3.2% | $0.21-62.5% | -$2.46-602.0% |
| Diluted Shares (Avg) | 6M-1.5% | 6M-1.6% | N/A | 6M-2.3% | 6M-2.2% | 6M-1.7% | N/A | 6M-0.7% |
EML 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 | Q2'2710-Q | Q1'2710-Q | Q4'2610-Q | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K/A | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $245.1M+6.8% | $217.1M-6.6% | $216.7M-7.9% | $220.0M-9.9% | $229.4M-10.4% | $232.3M-8.5% | $235.3M-6.6% | $244.2M-4.9% |
| Current Assets | $124.8M+15.6% | $99.6M-9.1% | $99.3M-14.1% | $100.6M-20.2% | $107.9M-8.7% | $109.6M-4.7% | $115.6M+3.0% | $126.1M+5.5% |
| Cash & Equivalents | $15.1M+65.8% | $7.6M-3.6% | $7.4M-47.1% | $9.2M+20.3% | $9.1M-22.2% | $7.9M+7.4% | $14.0M+74.1% | $7.7M-19.6% |
| Short-Term Investments | $33K | $0-100.0% | $0-100.0% | $0-100.0% | $0-100.0% | $2.3M+9.6% | $2.1M+107.9% | $2.0M |
| Inventory | $66.0M+21.9% | $53.1M-4.1% | $56.3M+2.1% | $56.8M-2.3% | $54.1M-4.8% | $55.4M-0.9% | $55.2M-5.5% | $58.1M-4.2% |
| Accounts Receivable | $36.8M-8.4% | $32.6M-2.8% | $30.1M-15.2% | $30.0M-34.8% | $40.2M-4.9% | $33.5M-21.9% | $35.5M+3.8% | $46.0M+7.4% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $58.7M0.0% | $58.6M0.0% | $58.6M+0.2% | $58.6M0.0% | $58.6M-17.1% | $58.6M-17.1% | $58.5M-0.1% | $58.6M-17.2% |
| Total Liabilities | $115.1M+9.7% | $92.6M-16.9% | $92.0M-19.7% | $95.8M-23.4% | $105.0M-12.1% | $111.3M-6.7% | $114.6M-4.1% | $125.0M-2.4% |
| Current Liabilities | $44.6M+10.2% | $28.3M-28.5% | $27.6M-38.3% | $33.6M-29.7% | $40.5M-11.0% | $39.6M-9.5% | $44.8M+4.8% | $47.8M+4.0% |
| Non-Current Liabilities | $70.5M+9.4% | $64.3M-10.5% | $64.4M-7.7% | $62.1M-19.5% | $64.5M-12.8% | $71.8M-5.2% | $69.8M-9.1% | $77.2M-6.0% |
| Long-Term Debt | $41.7M+29.8% | $32.9M-12.4% | $33.9M-12.3% | $31.0M-25.2% | $32.1M-18.8% | $37.6M-6.8% | $38.6M-5.9% | $41.5M-9.1% |
| Total Equity | $130.0M+4.5% | $124.5M+2.9% | $124.6M+3.3% | $124.3M+4.2% | $124.4M-8.8% | $121.0M-10.0% | $120.7M-8.9% | $119.2M-7.3% |
| Retained Earnings | $143.0M+3.9% | $138.0M+2.8% | $138.0M+3.3% | $137.5M+3.4% | $137.6M-7.6% | $134.2M-8.2% | $133.5M-7.8% | $132.9M-6.4% |
EML 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 | Q2'2710-Q | Q1'2710-Q | Q4'2610-Q | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K/A | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $8.6M+127.7% | $3.5M+288.3% | $3.8M-65.2% | $3.1M+208.5% | $3.8M-55.4% | -$1.8M-166.4% | $11.0M+49.4% | -$2.9M-162.4% |
| Depreciation & Amortization | $1.6M-6.4% | $1.7M+9.1% | $1.7M+7.2% | $1.7M+218.3% | $1.7M-10.8% | $1.5M-19.4% | $1.6M-54.3% | $524K |
| Stock-Based Compensation | N/A | -$142K-514.7% | N/A | N/A | N/A | -$23K-104.5% | N/A | N/A |
| Capital Expenditures | $615K-18.0% | $867K+2.1% | $2.3M+12.1% | $44K-99.1% | $750K-33.2% | $849K-50.4% | $2.1M+42.6% | $4.8M+127.4% |
| Free Cash Flow | $7.9M+164.1% | $2.6M+196.8% | $1.5M-83.1% | $3.1M+140.0% | $3.0M-58.9% | -$2.7M-351.8% | $9.0M+51.1% | -$7.7M-408.3% |
| Investing Cash Flow | -$8.7M-357.4% | -$859K+45.1% | -$2.3M-987.6% | -$44K+99.1% | $3.4M+617.3% | -$1.6M+41.9% | $256K+111.3% | -$4.8M-122.7% |
| Financing Cash Flow | $7.5M+210.2% | -$2.3M+20.8% | -$3.7M+14.9% | -$2.8M-197.9% | -$6.8M-307.8% | -$3.0M-69.3% | -$4.3M+28.7% | $2.9M+143.6% |
| Dividends Paid | $662K-1.6% | $665K-1.5% | $665K-2.1% | $668K-2.0% | $673K-1.9% | $675K-1.2% | $679K-2.5% | $682K-2.4% |
| Share Buybacks | $406K-43.9% | $422K-69.8% | $754K-33.9% | $851K-40.6% | $723K+192.3% | $1.4M+496.6% | $1.1M+132.9% | $1.4M+484.0% |
EML 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 | Q2'2710-Q | Q1'2710-Q | Q4'2610-Q | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K/A | Q3'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.6%-2.7pp | 20.0%-2.4pp | 23.3%-0.3pp | 22.4%-3.2pp | 23.3%-2.1pp | 22.4%-1.5pp | 23.6%-4.6pp | 25.5%+0.6pp |
| Operating Margin | 2.7%-1.8pp | 2.2%-2.9pp | 4.3%-1.8pp | 3.1%-6.4pp | 4.5%-3.8pp | 5.1%-0.2pp | 6.1%-7.6pp | 9.5%+1.5pp |
| Net Margin | 9.1%+4.2pp | 1.1%-2.0pp | 1.9%-0.1pp | 1.1%+22.5pp | 4.9%+0.1pp | 3.1%+0.1pp | 2.0%-4.7pp | -21.5%-26.1pp |
| Return on Equity | 4.3%+1.6pp | 0.5%-1.1pp | 0.9%-0.1pp | 0.5%+13.3pp | 2.8%+0.2pp | 1.6%+0.2pp | 1.1%-1.6pp | -12.8%-15.2pp |
| Return on Assets | 2.3%+0.8pp | 0.3%-0.5pp | 0.5%0.0pp | 0.3%+6.5pp | 1.5%+0.1pp | 0.8%+0.1pp | 0.6%-0.8pp | -6.3%-7.5pp |
| Current Ratio | 2.80+0.1x | 3.52+0.7x | 3.59+1.0x | 2.99+0.4x | 2.67+0.1x | 2.77+0.1x | 2.580.0x | 2.640.0x |
| Debt-to-Equity | 0.32+0.1x | 0.260.0x | 0.270.0x | 0.25-0.1x | 0.260.0x | 0.310.0x | 0.320.0x | 0.350.0x |
| Asset Turnover | 0.25-0.1x | 0.270.0x | 0.280.0x | 0.250.0x | 0.310.0x | 0.270.0x | 0.27+0.1x | 0.290.0x |
| FCF Margin | 12.8%+8.6pp | 4.4%+8.6pp | 2.5%-11.4pp | 5.5%+16.3pp | 4.3%-5.8pp | -4.3%-5.9pp | 13.9%+2.6pp | -10.8%-14.6pp |
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 |
|---|---|---|---|---|---|---|
| Eastern Company EML | FY2025 | $249.0M | $7.1M | 2.9% | $147.3M | 51/100 |
| Kennametal Inc. KMT | FY2026 | $2.4B | $342.4M | 14.5% | $2.2B | 59/100 |
| Chicago Rivet & Machine Co. CVR | FY2025 | $27.9M | -$1.1M | -3.9% | $9.7M | 42/100 |
| Hillman Solutions Corp. HLMN | FY2025 | $1.6B | $40.3M | 2.6% | $1.4B | 48/100 |
| Toro Company (The) TTC | FY2025 | $4.5B | $316.1M | 7.0% | $8.8B | 59/100 |
| The Timken Company TKR | FY2025 | $4.6B | $288.4M | 6.3% | $8.3B | 58/100 |
Where Eastern Company Ranks
Frequently Asked Questions
What is Eastern Company's annual revenue?
Eastern Company (EML) reported $249.0M in total revenue for fiscal year 2025. This represents a -8.7% 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 Eastern Company's revenue growing?
Eastern Company (EML) revenue declined by 8.7% year-over-year, from $272.8M to $249.0M in fiscal year 2025.
Is Eastern Company profitable?
Yes, Eastern Company (EML) reported a net income of $7.1M in fiscal year 2025, with a net profit margin of 2.9%.
What is Eastern Company's EBITDA?
Eastern Company (EML) had EBITDA of $17.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Eastern Company have?
As of fiscal year 2025, Eastern Company (EML) had $7.4M in cash and equivalents against $33.9M in long-term debt.
What is Eastern Company's gross margin?
Eastern Company (EML) had a gross margin of 22.9% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Eastern Company's operating margin?
Eastern Company (EML) had an operating margin of 4.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Eastern Company's net profit margin?
Eastern Company (EML) had a net profit margin of 2.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Eastern Company pay dividends?
Yes, Eastern Company (EML) paid $0.44 per share in dividends during fiscal year 2025.
What is Eastern Company's return on equity (ROE)?
Eastern Company (EML) has a return on equity of 5.7% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Eastern Company's free cash flow?
Eastern Company (EML) generated $4.9M in free cash flow during fiscal year 2025. This represents a -49.4% 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 Eastern Company's operating cash flow?
Eastern Company (EML) generated $8.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Eastern Company's total assets?
Eastern Company (EML) had $216.7M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Eastern Company's capital expenditures?
Eastern Company (EML) invested $4.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Eastern Company spend on research and development?
Eastern Company (EML) invested $4.1M in research and development during fiscal year 2025.
What is Eastern Company's current ratio?
Eastern Company (EML) had a current ratio of 3.59 as of fiscal year 2025, which is generally considered healthy.
What is Eastern Company's debt-to-equity ratio?
Eastern Company (EML) had a debt-to-equity ratio of 0.27 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Eastern Company's return on assets (ROA)?
Eastern Company (EML) had a return on assets of 3.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Eastern Company's P/E ratio?
Eastern Company (EML) trades at 18.3x earnings, its market capitalization divided by net income of $8.0M net income, trailing 12 months to July 4, 2026. The market capitalization is $147.3M 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 Eastern Company's price-to-sales ratio?
Eastern Company (EML) trades at 0.6x sales, its market capitalization divided by revenue of $237.0M revenue, trailing 12 months to July 4, 2026. The market capitalization is $147.3M 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 Eastern Company's Altman Z-Score?
Eastern Company (EML) has an Altman Z-Score of 3.56, 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 Eastern Company's Piotroski F-Score?
Eastern Company (EML) has a Piotroski F-Score of 7 out of 9, indicating strong 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 Eastern Company's earnings high quality?
Eastern Company (EML) has an earnings quality ratio of 1.24x, 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.
Can Eastern Company cover its interest payments?
Eastern Company (EML) has an interest coverage ratio of 3.98x, meaning it can adequately cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Eastern Company?
Eastern Company (EML) scores 51 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.