Linde plc (LIN) 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 Nov 6, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q3 FY2026, filed Oct 29, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the LIN SEC filings page.
Linde plc (LIN) reported $36.2B in revenue over the twelve months to Sep 30, 2026, up 8.2% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 10 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).
Linde's earnings efficiency is improving, but heavier investment and borrowing are absorbing more of its operating cash.
From FY2022 to FY2025, revenue increased1.9% while operating margin expanded10.2 percentage points , revealing margin-led improvement rather than volume-led growth. Over the same period, operating cash flow rose16.8% while free cash flow fell10.6% , indicating that reinvestment is absorbing the operating gains.
Capital expenditures consumed
From FY2022 to FY2025, liabilities grew
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group, and the overall is the average of the dimensions that can be computed. 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 Linde plc'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.
Linde plc has an operating margin of 26.3%, meaning the company retains $26 of operating profit per $100 of revenue. This strong profitability earns a score of 85/100, reflecting efficient cost management and pricing power. This is up from 26.2% the prior year.
Linde plc's revenue grew a modest 3.0% year-over-year to $34.0B. This slow but positive growth earns a score of 36/100.
Linde plc has a moderate D/E ratio of 0.54. This balance of debt and equity financing earns a leverage score of 42/100.
Linde plc's current ratio of 0.88 is below the typical benchmark, resulting in a score of 14/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Linde plc converts 15.0% of revenue into free cash flow ($5.1B). This strong cash generation earns a score of 79/100.
Linde plc earns a strong 18.0% return on equity (ROE), meaning it generates $18 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 76/100. This is up from 17.2% the prior year.
Linde plc scores 3.99, well above the 2.99 safe threshold. The largest contribution to the score comes from a market capitalization of $236.5B against total liabilities of $47.1B. 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.
Linde plc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 operating efficiency signals passes.
For every $1 of reported earnings, Linde plc generates $1.50 in operating cash flow ($10.3B OCF vs $6.9B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Linde plc earns $15.52 in operating income for every $1 of interest expense ($8.9B vs $575.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Linde plc generated $9.4B in revenue in Q3 2026. This represents an increase of 9.2% from the same quarter a year earlier. Against the prior quarter it is up 1.2%.
Linde plc's EBITDA was $3.1B in Q3 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 6.4% from the same quarter a year earlier. Against the prior quarter it is down 11.4%.
Linde plc reported $1.7B in net income in Q3 2026. This represents a decrease of 12.3% from the same quarter a year earlier. Against the prior quarter it is down 12.2%.
Linde plc earned $3.66 per diluted share (EPS) in Q3 2026. This represents a decrease of 10.5% from the same quarter a year earlier. Against the prior quarter it is down 11.8%.
Cash & Balance Sheet
Linde plc generated $1.8B in free cash flow in Q3 2026, representing cash available after capex. This represents an increase of 6.3% from the same quarter a year earlier. Against the prior quarter it is up 113.3%.
Linde plc held $3.9B in cash against $20.6B in long-term debt as of Q3 2026.
Linde plc paid $1.60 per share in dividends in Q3 2026. This represents an increase of 6.7% from the same quarter a year earlier. It is unchanged from the prior quarter.
Margins & Returns
Linde plc's gross margin was 47.2% in Q3 2026, indicating the percentage of revenue retained after direct costs. This is down 1.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.4 percentage points.
Linde plc's operating margin was 22.9% in Q3 2026, reflecting core business profitability. This is down 4.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 4.6 percentage points.
Linde plc's net profit margin was 18.0% in Q3 2026, showing the share of revenue converted to profit. This is down 4.4 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.8 percentage points.
Linde plc's quarterly ROE was 4.3% in Q3 2026: one quarter's net income over shareholder equity, not annualized. This is down 0.7 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.6 percentage points.
Capital Allocation
Linde plc invested $37.0M in research and development in Q3 2026. This represents an increase of 2.8% from the same quarter a year earlier. It is unchanged from the prior quarter.
Linde plc spent $954.0M on share buybacks in Q3 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 3.5% from the same quarter a year earlier. Against the prior quarter it is up 9.5%.
Linde plc invested $1.4B in capex in Q3 2026, funding long-term assets and infrastructure. This represents an increase of 9.1% from the same quarter a year earlier. Against the prior quarter it is down 3.2%.
LIN 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 | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Revenue | $9.4B+9.2% | $9.3B+9.3% | $8.8B+8.2% | $8.8B+5.8% | $8.6B+3.1% | $8.5B+2.8% | $8.1B+0.1% | $8.3B-0.2% |
| Cost of Revenue | $5.0B+13.3% | $4.9B+12.9% | $4.5B+8.8% | $4.5B+5.3% | $4.4B+0.5% | $4.3B+1.3% | $4.2B-1.4% | $4.3B-2.5% |
| Gross Profit | $4.4B+4.9% | $4.4B+5.7% | $4.3B+7.7% | $4.2B+6.4% | $4.2B+5.9% | $4.2B+4.3% | $4.0B+1.8% | $4.0B+2.4% |
| R&D Expenses | $37.0M+2.8% | $37.0M-2.6% | $38.0M0.0% | $35.0M-10.3% | $36.0M-2.7% | $38.0M+5.6% | $38.0M0.0% | $39.0M0.0% |
| SG&A Expenses | $892.0M-0.6% | $891.0M+2.4% | $893.0M+13.6% | $880.0M+8.1% | $897.0M+9.0% | $870.0M+3.6% | $786.0M-8.6% | $814.0M-2.2% |
| Operating Income | $2.1B-9.2% | $2.6B+8.5% | $2.4B+11.7% | $2.0B-11.1% | $2.4B+13.5% | $2.4B+7.8% | $2.2B+4.2% | $2.3B+11.9% |
| EBITDA | $3.1B-6.4% | $3.5B+6.7% | $3.4B+9.6% | $3.0B-6.8% | $3.3B+9.3% | $3.3B+4.9% | $3.1B+1.6% | $3.2B+6.9% |
| Interest Expense | $71.0M+10.9% | $61.0M-9.0% | $62.0M+3.3% | $384.0M+9.1% | $64.0M-5.9% | $67.0M-4.3% | $60.0M-7.7% | $352.0M |
| Income Tax | $449.0M+5.9% | $610.0M+6.5% | $571.0M+11.7% | $481.0M-9.8% | $424.0M-14.9% | $573.0M+12.8% | $511.0M+10.4% | $533.0M+16.1% |
| Net Income | $1.7B-12.3% | $1.9B+9.2% | $1.9B+11.0% | $1.5B-11.3% | $1.9B+24.5% | $1.8B+6.2% | $1.7B+2.8% | $1.7B+11.8% |
| EPS (Basic) | $3.67-10.7% | $4.17+11.2% | $4.00+13.3% | $3.29-9.1% | $4.11+26.9% | $3.75+8.4% | $3.53+4.4% | $3.62+13.5% |
| EPS (Diluted) | $3.66-10.5% | $4.15+11.3% | $3.98+13.4% | $3.27-9.2% | $4.09+27.0% | $3.73+8.4% | $3.51+4.8% | $3.60+13.9% |
| Diluted Shares (Avg) | 463M-1.9% | 465M-1.9% | 466M-2.1% | N/A | 472M-2.0% | 474M-2.0% | 476M-1.9% | N/A |
LIN 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 | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $88.1B+2.4% | $88.3B+2.6% | $86.3B+4.4% | $86.8B+8.3% | $86.0B+4.2% | $86.1B+7.3% | $82.7B+2.9% | $80.1B-0.8% |
| Current Assets | $13.4B+0.6% | $14.2B+4.0% | $12.8B-6.2% | $13.3B+2.9% | $13.3B-1.0% | $13.6B+6.1% | $13.6B+3.8% | $12.9B+2.6% |
| Cash & Equivalents | $3.9B-12.5% | $4.9B+2.3% | $4.0B-25.2% | $5.1B+4.2% | $4.5B-13.1% | $4.8B+3.5% | $5.3B+9.2% | $4.8B+4.0% |
| Short-Term Investments | $0n/m | $0n/m | $0n/m | N/A | $0n/m | $0n/m | $0n/m | N/A |
| Inventory | $2.1B0.0% | $2.1B0.0% | $2.1B+4.8% | $2.1B+5.6% | $2.1B+2.0% | $2.1B+1.3% | $2.0B-5.5% | $1.9B-8.0% |
| Accounts Receivable | $5.6B+5.0% | $5.6B+7.7% | $5.3B+7.5% | $5.0B+7.4% | $5.3B+9.4% | $5.2B+4.6% | $5.0B-1.2% | $4.6B-2.0% |
| Long-Term Investments | $0n/m | $0n/m | $0n/m | N/A | $0n/m | $0n/m | $0n/m | N/A |
| Goodwill | $27.9B+0.3% | $27.9B+0.4% | $27.9B+5.2% | $27.9B+7.7% | $27.8B+2.7% | $27.8B+5.5% | $26.5B+0.8% | $25.9B-3.0% |
| Total Liabilities | $47.1B+2.6% | $47.7B+3.5% | $46.2B+6.9% | $47.1B+15.8% | $45.9B+9.5% | $46.1B+13.3% | $43.2B+7.8% | $40.7B+2.4% |
| Current Liabilities | $15.6B-3.4% | $16.1B+9.6% | $15.4B+6.3% | $15.2B+4.5% | $16.2B+15.3% | $14.7B+9.0% | $14.5B+0.7% | $14.5B-7.5% |
| Non-Current Liabilities | $31.4B+5.8% | $31.6B+0.7% | $30.8B+7.2% | $31.9B+22.1% | $29.7B+6.5% | $31.4B+15.5% | $28.8B+11.8% | $26.1B+8.8% |
| Long-Term Debt | $20.6B+10.8% | $20.7B+5.0% | $19.9B+12.8% | $20.7B+34.8% | $18.6B+6.4% | $19.7B+16.4% | $17.6B+15.6% | $15.3B+14.5% |
| Total Equity | $39.4B+2.1% | $39.1B+1.5% | $38.6B+1.4% | $38.2B+0.4% | $38.6B-1.4% | $38.5B+0.9% | $38.0B-2.1% | $38.1B-4.1% |
| Retained Earnings | $19.7B+25.0% | $18.8B+28.8% | $17.6B+30.2% | $16.6B+31.5% | $15.8B+36.3% | $14.6B+36.1% | $13.5B+39.5% | $12.6B+42.8% |
LIN 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 | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $3.2B+7.5% | $2.3B+2.7% | $2.2B+3.7% | $3.0B+7.9% | $2.9B+7.9% | $2.2B+14.6% | $2.2B+10.6% | $2.8B+3.0% |
| Depreciation & Amortization | $965.0M+0.4% | $963.0M+2.2% | $951.0M+4.5% | $950.0M+4.1% | $961.0M+0.1% | $942.0M-1.7% | $910.0M-4.1% | $913.0M-3.8% |
| Stock-Based Compensation | N/A | N/A | $41.0M-2.4% | N/A | N/A | N/A | $42.0M+10.5% | N/A |
| Capital Expenditures | $1.4B+9.1% | $1.4B+14.4% | $1.3B+5.7% | $1.5B+16.6% | $1.3B+19.7% | $1.3B+10.9% | $1.3B+21.2% | $1.3B+8.6% |
| Free Cash Flow | $1.8B+6.3% | $833.0M-12.7% | $898.0M+0.8% | $1.6B+0.8% | $1.7B+0.4% | $954.0M+19.8% | $891.0M-1.7% | $1.6B-1.1% |
| Investing Cash Flow | -$1.3Bn/m | -$1.7Bn/m | -$1.4Bn/m | -$1.5Bn/m | -$1.4Bn/m | -$1.5Bn/m | -$1.4Bn/m | -$1.4Bn/m |
| Financing Cash Flow | -$2.8Bn/m | $321.0Mn/m | -$2.0Bn/m | -$1.0Bn/m | -$1.8Bn/m | -$1.4Bn/m | -$388.0Mn/m | -$1.6Bn/m |
| Dividends Paid | $735.0M+4.9% | $738.0M+4.8% | $741.0M+4.7% | $698.0M+5.9% | $701.0M+5.9% | $704.0M+5.9% | $708.0M+5.8% | $659.0M+7.0% |
| Share Buybacks | $954.0M-3.5% | $871.0M-21.6% | $807.0M-27.4% | $1.4B+4.2% | $989.0M+48.3% | $1.1B-22.8% | $1.1B+6.7% | $1.3B+29.1% |
LIN 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 | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 47.2%-1.9pp | 47.7%-1.6pp | 48.5%-0.3pp | 48.1%+0.3pp | 49.2%+1.3pp | 49.3%+0.7pp | 48.8%+0.8pp | 47.8%+1.2pp |
| Operating Margin | 22.9%-4.6pp | 27.5%-0.2pp | 27.8%+0.9pp | 23.0%-4.4pp | 27.5%+2.5pp | 27.7%+1.3pp | 26.9%+1.1pp | 27.4%+3.0pp |
| Net Margin | 18.0%-4.4pp | 20.8%0.0pp | 21.1%+0.5pp | 17.5%-3.4pp | 22.4%+3.8pp | 20.8%+0.7pp | 20.6%+0.5pp | 20.8%+2.2pp |
| Return on Equity | 4.3%-0.7pp | 4.9%+0.3pp | 4.8%+0.4pp | 4.0%-0.5pp | 5.0%+1.0pp | 4.6%+0.2pp | 4.4%+0.2pp | 4.5%+0.6pp |
| Return on Assets | 1.9%-0.3pp | 2.2%+0.1pp | 2.1%+0.1pp | 1.8%-0.4pp | 2.2%+0.4pp | 2.1%0.0pp | 2.0%0.0pp | 2.1%+0.2pp |
| Current Ratio | 0.860.0x | 0.880.0x | 0.83-0.1x | 0.880.0x | 0.82-0.1x | 0.930.0x | 0.940.0x | 0.89+0.1x |
| Debt-to-Equity | 0.520.0x | 0.530.0x | 0.51+0.1x | 0.54+0.1x | 0.480.0x | 0.51+0.1x | 0.46+0.1x | 0.40+0.1x |
| Liabilities-to-Equity | 1.190.0x | 1.220.0x | 1.20+0.1x | 1.23+0.2x | 1.19+0.1x | 1.20+0.1x | 1.14+0.1x | 1.07+0.1x |
| Asset Turnover | 0.110.0x | 0.110.0x | 0.100.0x | 0.100.0x | 0.100.0x | 0.100.0x | 0.100.0x | 0.100.0x |
| FCF Margin | 18.9%-0.5pp | 9.0%-2.3pp | 10.2%-0.7pp | 17.9%-0.9pp | 19.4%-0.5pp | 11.2%+1.6pp | 11.0%-0.2pp | 18.8%-0.2pp |
Note: The current ratio is below 1.0 (0.88), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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. Market cap is stated at each company's latest close.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Linde plc LIN | FY2025 | $34.0B | $6.9B | 20.3% | $236.5B | 55/100 |
| Air Products & Chemicals, Inc. APD | FY2025 | $12.0B | -$394.5M | -3.3% | $67.9B | 33/100 |
| Ecolab, Inc. ECL | FY2025 | $16.1B | $2.1B | 12.9% | $84.3B | 54/100 |
| The Sherwin-Williams Company SHW | FY2025 | $23.6B | $2.6B | 10.9% | $83.1B | 53/100 |
| LyondellBasell Industries N.V. LYB | FY2025 | $30.2B | -$738.0M | -2.5% | $19.6B | 34/100 |
| RPM International, Inc. RPM | FY2026 | $7.9B | $661.4M | 8.4% | $13.2B | 62/100 |
Where Linde plc Ranks
Frequently Asked Questions
Linde plc (LIN) reported $34.0B in total revenue for fiscal year 2025. This represents a 3.0% 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.
Linde plc (LIN) revenue grew by 3.0% year-over-year, from $33.0B to $34.0B in fiscal year 2025.
Yes, Linde plc (LIN) reported a net income of $7.0B over the trailing 12 months to September 30, 2026. In fiscal year 2025 it reported a net income of $6.9B, with a net profit margin of 20.3%.
Linde plc (LIN) had EBITDA of $12.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
As of fiscal year 2025, Linde plc (LIN) had $5.1B in cash and equivalents against $20.7B in long-term debt.
Linde plc (LIN) had a gross margin of 48.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
Linde plc (LIN) had an operating margin of 26.3% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
Linde plc (LIN) had a net profit margin of 20.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Yes, Linde plc (LIN) paid $6.00 per share in dividends during fiscal year 2025.
Linde plc (LIN) has a return on equity of 18.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
Linde plc (LIN) generated $5.1B in free cash flow during fiscal year 2025. This represents a 3.3% 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.
Linde plc (LIN) generated $10.3B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
Linde plc (LIN) had $86.8B in total assets as of fiscal year 2025, including both current and long-term assets.
Linde plc (LIN) invested $5.3B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
Linde plc (LIN) invested $147.0M in research and development during fiscal year 2025.
Linde plc (LIN) had a current ratio of 0.88 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
Linde plc (LIN) had a debt-to-equity ratio of 0.54 as of fiscal year 2025. We compute it as long-term debt divided by total shareholder equity, where long-term debt is the noncurrent part of the company's borrowings, so debt due within the next twelve months is not counted.
Linde plc (LIN) had a liabilities-to-equity ratio of 1.23 as of fiscal year 2025, which is total liabilities divided by total shareholder equity. Total liabilities counts every obligation on the balance sheet (payables, deposits, insurance reserves and deferred taxes as well as borrowings), so this ratio usually runs well above debt-to-equity.
Linde plc (LIN) had a return on assets of 8.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Linde plc (LIN) trades at 33.8x earnings, its market capitalization divided by $7.0B net income, trailing 12 months to September 30, 2026. The market capitalization is $236.5B as of Nov 6, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
Linde plc (LIN) trades at 6.5x sales, its market capitalization divided by $36.2B revenue, trailing 12 months to September 30, 2026. The market capitalization is $236.5B as of Nov 6, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
Linde plc (LIN) has an Altman Z-Score of 3.99, 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.
Linde plc (LIN) has a Piotroski F-Score of 5 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.
Linde plc (LIN) has an earnings quality ratio of 1.50x, 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.
Linde plc (LIN) has an interest coverage ratio of 15.52x, meaning it can comfortably 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.
Linde plc (LIN) scores 55 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is the average 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.