Energy Recovery, Inc. (ERII) 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 Oct 13, 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 5, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the ERII SEC filings page.
Energy Recovery, Inc. (ERII) reported $120.6M in revenue over the twelve months to Jun 30, 2026, down 15.0% 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).
Energy Recovery converts profits into cash, while 2025’s weaker sales were offset by cost control and working-capital absorption.
In FY2025, net income exceeded operating cash flow, while accounts receivable rose to$76.6M as sales fell; that combination indicates some accounting profit was tied up in collections. Free cash flow of$17.4M stayed positive but was below net income, so the business funded itself internally without converting every reported profit dollar into spendable cash.
Operating margin widened to
Current ratio reached 10.4x while total liabilities fell to
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 Energy Recovery, 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.
Energy Recovery, Inc. has an operating margin of 17.7%, meaning the company retains $18 of operating profit per $100 of revenue. This strong profitability earns a score of 81/100, reflecting efficient cost management and pricing power. This is up from 13.6% the prior year.
Energy Recovery, Inc.'s revenue declined 6.9% year-over-year, from $144.9M to $135.0M. This contraction results in a growth score of 40/100.
Energy Recovery, Inc. carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 79/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 10.44, Energy Recovery, Inc. holds $10.44 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 98/100.
Energy Recovery, Inc. converts 12.9% of revenue into free cash flow ($17.4M). This strong cash generation earns a score of 76/100.
Energy Recovery, Inc. earns a strong 11.1% return on equity (ROE), meaning it generates $11 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 71/100. This is up from 11.0% the prior year.
Energy Recovery, Inc. scores 10.84, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($349.7M) relative to total liabilities ($25.3M). 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.
Energy Recovery, Inc. passes 5 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Energy Recovery, Inc. generates $0.82 in operating cash flow ($18.8M OCF vs $23.0M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Key Financial Metrics
Earnings & Revenue
Energy Recovery, Inc. generated $12.0M in revenue in Q2 2026. This represents a decrease of 57.2% from the same quarter a year earlier. Against the prior quarter it is up 23.6%.
Energy Recovery, Inc.'s EBITDA was -$4.9M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 301.9% from the same quarter a year earlier. Against the prior quarter it is up 64.8%.
Energy Recovery, Inc. reported -$3.2M in net income in Q2 2026. This represents a decrease of 255.7% from the same quarter a year earlier. Against the prior quarter it is up 73.9%.
Energy Recovery, Inc. earned -$0.06 per diluted share (EPS) in Q2 2026. This represents a decrease of 250.0% from the same quarter a year earlier. Against the prior quarter it is up 73.9%.
Cash & Balance Sheet
Energy Recovery, Inc. generated $15.4M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 284.7% from the same quarter a year earlier. Against the prior quarter it is down 23.7%.
Energy Recovery, Inc. held $61.4M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Energy Recovery, Inc.'s gross margin was 74.7% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 10.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 46.8 percentage points.
Energy Recovery, Inc.'s operating margin was -49.0% in Q2 2026, reflecting core business profitability. This is down 54.3 percentage points from the same quarter a year earlier.
Energy Recovery, Inc.'s net profit margin was -26.7% in Q2 2026, showing the share of revenue converted to profit. This is down 34.0 percentage points from the same quarter a year earlier.
Energy Recovery, Inc.'s ROE was -1.8% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is down 3.0 percentage points from the same quarter a year earlier. Against the prior quarter it is up 4.8 percentage points.
Capital Allocation
Energy Recovery, Inc. invested $2.8M in research and development in Q2 2026. This represents a decrease of 17.4% from the same quarter a year earlier. Against the prior quarter it is up 2.2%.
Energy Recovery, Inc. spent $10.0M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 41.4% from the same quarter a year earlier. Against the prior quarter it is down 6.0%.
Energy Recovery, Inc. invested $875K in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 548.1% from the same quarter a year earlier. Against the prior quarter it is up 7.5%.
ERII 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 | $12.0M-57.2% | $9.7M+20.3% | $66.9M-0.3% | $32.0M-17.1% | $28.1M+3.1% | $8.1M-33.3% | $67.1M+17.3% | $38.6M+4.2% |
| Cost of Revenue | N/A | N/A | $21.9M+9.8% | $11.4M-15.1% | $10.1M+4.8% | $3.6M-27.2% | $20.0M+12.8% | $13.5M+20.8% |
| Gross Profit | $9.0M-50.1% | $2.7M-39.4% | $45.0M-4.6% | $20.6M-18.1% | $18.0M+2.2% | $4.5M-37.5% | $47.1M+19.3% | $25.1M-3.0% |
| R&D Expenses | $2.8M-17.4% | $2.8M-7.1% | $2.9M-26.6% | $3.7M-7.6% | $3.5M-12.5% | $3.0M-31.0% | $4.0M-19.9% | $4.0M0.0% |
| SG&A Expenses | $6.8M-11.3% | $6.5M-24.7% | $6.0M-27.6% | $7.5M-2.1% | $7.7M-19.5% | $8.6M+13.3% | $8.3M+16.0% | $7.7M+4.1% |
| Operating Income | -$5.9M-499.2% | -$14.9M-18.3% | $31.3M+22.3% | $3.7M-48.1% | $1.5M+173.2% | -$12.6M-14.9% | $25.6M+24.3% | $7.1M-22.7% |
| EBITDA | -$4.9M-301.9% | -$13.9M-19.7% | $32.3M+21.2% | $4.6M-43.3% | $2.4M+341.3% | -$11.6M-17.1% | $26.6M+23.0% | $8.1M-20.8% |
| Income Tax | -$1.9M-664.1% | -$1.8M-10.7% | $5.2M+54.3% | $680K+97.7% | $334K+38.0% | -$1.6M-24.7% | $3.4M+60.6% | $344K-33.6% |
| Net Income | -$3.2M-255.7% | -$12.3M-24.0% | $26.9M+14.7% | $3.9M-54.3% | $2.1M+419.9% | -$9.9M-19.6% | $23.5M+18.5% | $8.5M-12.2% |
| EPS (Basic) | -$0.06-250.0% | -$0.23-27.8% | $0.50+22.0% | $0.07-53.3% | $0.04+500.0% | -$0.18-28.6% | $0.41+17.1% | $0.15-11.8% |
| EPS (Diluted) | -$0.06-250.0% | -$0.23-27.8% | $0.49+19.5% | $0.07-53.3% | $0.04+500.0% | -$0.18-28.6% | $0.41+20.6% | $0.15-11.8% |
| Diluted Shares (Avg) | 51M-5.5% | 53M-4.1% | N/A | 53M-8.3% | 54M-5.0% | 55M-3.9% | N/A | 58M+0.6% |
Not reported in any period shown, so not listed: Interest Expense.
ERII 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 | $197.7M-6.8% | $209.0M-7.3% | $231.5M-4.6% | $209.6M-20.2% | $212.3M-14.8% | $225.4M-7.7% | $242.8M-4.0% | $262.7M+18.0% |
| Current Assets | $149.4M-1.8% | $161.1M+4.2% | $181.2M+4.4% | $155.6M-18.1% | $152.1M-4.3% | $154.6M-13.3% | $173.7M-6.4% | $189.9M+29.8% |
| Cash & Equivalents | $61.4M+7.7% | $50.1M+2.0% | $48.1M+62.3% | $47.1M-25.5% | $57.0M+41.5% | $49.1M-30.6% | $29.6M-56.5% | $63.3M+23.0% |
| Short-Term Investments | $31.6M+40.7% | $36.0M+4.7% | $27.2M-43.8% | $23.3M-58.0% | $22.5M-63.0% | $34.4M-26.1% | $48.4M+19.6% | $55.4M+67.3% |
| Inventory | $38.2M+17.1% | $30.9M-4.7% | $24.3M-2.6% | $33.6M+0.3% | $32.7M-3.0% | $32.4M+2.3% | $24.9M-4.8% | $33.5M-1.3% |
| Accounts Receivable | $14.2M-56.3% | $38.9M+20.2% | $76.6M+19.6% | $44.0M+38.2% | $32.6M+57.7% | $32.4M+29.3% | $64.1M+36.5% | $31.8M+36.5% |
| Long-Term Investments | $5.0M-64.5% | $6.0M-74.2% | $8.0M-63.2% | $9.6M-55.1% | $14.1M-61.8% | $23.2M+91.0% | $21.8M+57.8% | $21.3M-0.5% |
| Goodwill | $11.1M-13.0% | $11.1M-13.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% | $12.8M0.0% |
| Total Liabilities | $25.3M-6.7% | $24.7M-9.4% | $25.3M-22.8% | $28.8M-0.1% | $27.1M-11.3% | $27.3M-3.4% | $32.8M-1.2% | $28.8M+0.7% |
| Current Liabilities | $18.6M-1.5% | $17.4M-5.9% | $17.4M-25.9% | $21.2M+12.4% | $18.8M-5.9% | $18.4M+7.6% | $23.4M+9.1% | $18.9M+14.9% |
| Non-Current Liabilities | $6.7M-18.6% | $7.4M-16.9% | $8.0M-14.8% | $7.6M-23.7% | $8.2M-21.6% | $8.8M-20.2% | $9.4M-20.0% | $10.0M-18.4% |
| Total Equity | $172.5M-6.9% | $184.3M-7.0% | $206.2M-1.8% | $180.8M-22.7% | $185.2M-15.2% | $198.1M-8.3% | $210.0M-4.5% | $233.9M+20.5% |
| Retained Earnings | $113.2M+15.7% | $116.4M+21.5% | $128.7M+21.7% | $101.8M+23.7% | $97.9M+32.7% | $95.8M+28.8% | $105.7M+27.9% | $82.2M+30.8% |
Not reported in any period shown, so not listed: Long-Term Debt.
ERII 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 | $16.3M+293.3% | $21.0M+97.0% | $7.1M-21.0% | -$3.1M-4.3% | $4.1M-48.6% | $10.7M+64.4% | $9.0M-35.0% | -$3.0M-138.8% |
| Depreciation & Amortization | $1.0M+6.0% | $978K+1.7% | $941K-5.5% | $913K-9.5% | $944K-6.7% | $962K-6.5% | $996K-3.0% | $1.0M-4.5% |
| Stock-Based Compensation | N/A | $2.0M0.0% | N/A | N/A | N/A | $2.0M-40.2% | N/A | N/A |
| Capital Expenditures | $875K+548.1% | $814K+326.2% | $662K+536.5% | $342K+102.4% | $135K-32.8% | $191K-76.8% | $104K-92.5% | $169K-48.8% |
| Free Cash Flow | $15.4M+284.7% | $20.2M+92.8% | $6.4M-27.5% | -$3.5M-9.5% | $4.0M-49.0% | $10.5M+84.9% | $8.9M-28.6% | -$3.2M-142.8% |
| Investing Cash Flow | $4.6M-77.9% | -$7.6M-160.0% | -$3.0M-146.4% | $3.4M-84.1% | $20.9M+153.8% | $12.7M+354.2% | $6.5M+981.9% | $21.7M+1717.6% |
| Financing Cash Flow | -$9.6M+44.0% | -$11.4M-193.6% | -$3.1M+93.6% | -$10.4M-342.0% | -$17.2M-5597.4% | -$3.9M-425.5% | -$49.1M-1459.5% | $4.3M+433.3% |
| Share Buybacks | $10.0M-41.4% | $10.7M+137.4% | $3.4M-93.2% | $10.6M | $17.1M | $4.5M | $50.4M | $0 |
Not reported in any period shown, so not listed: Dividends Paid.
ERII 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 | 74.7%+10.7pp | 27.8%-27.4pp | 67.2%-3.0pp | 64.2%-0.8pp | 64.0%-0.6pp | 55.3%-3.7pp | 70.3%+1.2pp | 65.1%-4.8pp |
| Operating Margin | -49.0%-54.3pp | -153.1% | 46.8%+8.6pp | 11.4%-6.9pp | 5.3%+12.7pp | -155.8% | 38.2%+2.1pp | 18.3%-6.4pp |
| Net Margin | -26.7%-34.0pp | -126.2% | 40.3%+5.3pp | 12.1%-9.9pp | 7.3%+9.7pp | -122.5% | 35.0%+0.4pp | 22.0%-4.1pp |
| Return on Equity | -1.8%-3.0pp | -6.7%-1.7pp | 13.1%+1.9pp | 2.1%-1.5pp | 1.1%+1.4pp | -5.0%-1.2pp | 11.2%+2.2pp | 3.6%-1.3pp |
| Return on Assets | -1.6%-2.6pp | -5.9%-1.5pp | 11.6%+2.0pp | 1.8%-1.4pp | 1.0%+1.2pp | -4.4%-1.0pp | 9.7%+1.8pp | 3.2%-1.1pp |
| Current Ratio | 8.050.0x | 9.28+0.9x | 10.44+3.0x | 7.33-2.7x | 8.08+0.1x | 8.39-2.0x | 7.41-1.2x | 10.06+1.2x |
| Debt-to-Equity | 0.150.0x | 0.130.0x | 0.120.0x | 0.160.0x | 0.150.0x | 0.140.0x | 0.160.0x | 0.120.0x |
| Asset Turnover | 0.06-0.1x | 0.050.0x | 0.290.0x | 0.150.0x | 0.130.0x | 0.040.0x | 0.28+0.1x | 0.150.0x |
| FCF Margin | 128.6% | 208.4% | 9.6%-3.6pp | -10.8%-2.6pp | 14.3%-14.6pp | 130.0% | 13.2%-8.5pp | -8.2%-28.2pp |
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 |
|---|---|---|---|---|---|---|
| Energy Recovery, Inc. ERII | FY2025 | $135.0M | $23.0M | 17.0% | $349.7M | 74/100 |
| Ceco Environmental Corp CECO | FY2025 | $774.4M | $50.1M | 6.5% | $3.8B | 53/100 |
| Arq, Inc. ARQ | FY2025 | $120.3M | -$52.6M | -43.7% | $85.6M | 46/100 |
| PureCycle Technologies, Inc. PCT | FY2025 | $8.4M | -$182.6M | N/A | $723.3M | 28/100 |
| Fuel Tech, Inc. FTEK | FY2025 | $26.7M | -$2.3M | -8.7% | $51.5M | 53/100 |
Where Energy Recovery, Inc. Ranks
Frequently Asked Questions
What is Energy Recovery, Inc.'s annual revenue?
Energy Recovery, Inc. (ERII) reported $135.0M in total revenue for fiscal year 2025. This represents a -6.9% 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 Energy Recovery, Inc.'s revenue growing?
Energy Recovery, Inc. (ERII) revenue declined by 6.9% year-over-year, from $144.9M to $135.0M in fiscal year 2025.
Is Energy Recovery, Inc. profitable?
Yes, Energy Recovery, Inc. (ERII) reported a net income of $23.0M in fiscal year 2025, with a net profit margin of 17.0%.
What is Energy Recovery, Inc.'s EBITDA?
Energy Recovery, Inc. (ERII) had EBITDA of $27.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Energy Recovery, Inc.'s gross margin?
Energy Recovery, Inc. (ERII) had a gross margin of 65.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Energy Recovery, Inc.'s operating margin?
Energy Recovery, Inc. (ERII) had an operating margin of 17.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Energy Recovery, Inc.'s net profit margin?
Energy Recovery, Inc. (ERII) had a net profit margin of 17.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Energy Recovery, Inc.'s return on equity (ROE)?
Energy Recovery, Inc. (ERII) has a return on equity of 11.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Energy Recovery, Inc.'s free cash flow?
Energy Recovery, Inc. (ERII) generated $17.4M in free cash flow during fiscal year 2025. This represents a -9.3% 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 Energy Recovery, Inc.'s operating cash flow?
Energy Recovery, Inc. (ERII) generated $18.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Energy Recovery, Inc.'s total assets?
Energy Recovery, Inc. (ERII) had $231.5M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Energy Recovery, Inc.'s capital expenditures?
Energy Recovery, Inc. (ERII) invested $1.3M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Energy Recovery, Inc. spend on research and development?
Energy Recovery, Inc. (ERII) invested $13.0M in research and development during fiscal year 2025.
What is Energy Recovery, Inc.'s current ratio?
Energy Recovery, Inc. (ERII) had a current ratio of 10.44 as of fiscal year 2025, which is generally considered healthy.
What is Energy Recovery, Inc.'s debt-to-equity ratio?
Energy Recovery, Inc. (ERII) had a debt-to-equity ratio of 0.12 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Energy Recovery, Inc.'s return on assets (ROA)?
Energy Recovery, Inc. (ERII) had a return on assets of 9.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Energy Recovery, Inc.'s P/E ratio?
Energy Recovery, Inc. (ERII) trades at 22.8x earnings, its market capitalization divided by net income of $15.3M net income, trailing 12 months to June 30, 2026. The market capitalization is $349.7M as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Energy Recovery, Inc.'s price-to-sales ratio?
Energy Recovery, Inc. (ERII) trades at 2.9x sales, its market capitalization divided by revenue of $120.6M revenue, trailing 12 months to June 30, 2026. The market capitalization is $349.7M as of Oct 13, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Energy Recovery, Inc.'s Altman Z-Score?
Energy Recovery, Inc. (ERII) has an Altman Z-Score of 10.84, 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 Energy Recovery, Inc.'s Piotroski F-Score?
Energy Recovery, Inc. (ERII) has a Piotroski F-Score of 5 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 Energy Recovery, Inc.'s earnings high quality?
Energy Recovery, Inc. (ERII) has an earnings quality ratio of 0.82x, considered mixed 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 Energy Recovery, Inc.?
Energy Recovery, Inc. (ERII) scores 74 out of 100 on our Financial Health Score, indicating strong 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.