Otis Worldwide Corporation (OTIS) 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 10, 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 Jul 23, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the OTIS SEC filings page.
Otis Worldwide Corporation (OTIS) reported $14.9B in revenue over the twelve months to Jun 30, 2026, up 5.2% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 8 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).
Otis converts roughly one-tenth of sales into free cash flow, while shareholder payouts continue alongside a persistently negative equity base.
Cash conversion is stronger than the income statement alone suggests: FY2025 operating cash flow was$1.6B versus net income of$1.4B , so reported profit was broadly backed by cash. Free cash flow was$1.4B against only$152M of capital spending, indicating a cash-generative model that does not require heavy annual reinvestment.
Margin expansion outpaced volume: operating margin reached
The balance sheet is structurally unusual: liabilities of
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 Otis Worldwide Corporation'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.
Otis Worldwide Corporation has an operating margin of 14.8%, meaning the company retains $15 of operating profit per $100 of revenue. This strong profitability earns a score of 84/100, reflecting efficient cost management and pricing power. This is up from 14.1% the prior year.
Otis Worldwide Corporation's revenue grew a modest 1.2% year-over-year to $14.4B. This slow but positive growth earns a score of 33/100.
Otis Worldwide Corporation's current ratio of 0.85 is below the typical benchmark, resulting in a score of 13/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Otis Worldwide Corporation converts 10.0% of revenue into free cash flow ($1.4B). This strong cash generation earns a score of 66/100.
Otis Worldwide Corporation scores 2.77, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Otis Worldwide Corporation 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, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Otis Worldwide Corporation generates $1.15 in operating cash flow ($1.6B OCF vs $1.4B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Otis Worldwide Corporation earns $9.83 in operating income for every $1 of interest expense ($2.1B vs $217.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Otis Worldwide Corporation generated $3.9B in revenue in Q2 2026. This represents an increase of 7.3% from the same quarter a year earlier. Against the prior quarter it is up 8.2%.
Otis Worldwide Corporation's EBITDA was $617.0M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 4.4% from the same quarter a year earlier. Against the prior quarter it is up 6.4%.
Otis Worldwide Corporation reported $428.0M in net income in Q2 2026. This represents an increase of 8.9% from the same quarter a year earlier. Against the prior quarter it is up 25.9%.
Otis Worldwide Corporation earned $1.12 per diluted share (EPS) in Q2 2026. This represents an increase of 13.1% from the same quarter a year earlier. Against the prior quarter it is up 28.7%.
Cash & Balance Sheet
Otis Worldwide Corporation generated $223.0M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 24.6% from the same quarter a year earlier. Against the prior quarter it is down 41.3%.
Otis Worldwide Corporation held $813.0M in cash against $7.0B in long-term debt as of Q2 2026.
Otis Worldwide Corporation paid $0.44 per share in dividends in Q2 2026. This represents an increase of 4.8% from the same quarter a year earlier. Against the prior quarter it is up 4.8%.
Margins & Returns
Otis Worldwide Corporation's operating margin was 14.9% in Q2 2026, reflecting core business profitability. This is down 0.3 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.2 percentage points.
Otis Worldwide Corporation's net profit margin was 11.1% in Q2 2026, showing the share of revenue converted to profit. This is up 0.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.6 percentage points.
Not reported for Q2 2026.
Not reported for Q2 2026.
Capital Allocation
Otis Worldwide Corporation invested $39.0M in research and development in Q2 2026. This represents an increase of 2.6% from the same quarter a year earlier. Against the prior quarter it is up 2.6%.
Otis Worldwide Corporation spent $407.0M on share buybacks in Q2 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 32.1% from the same quarter a year earlier. Against the prior quarter it is up 1.8%.
Otis Worldwide Corporation invested $44.0M in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 22.2% from the same quarter a year earlier. Against the prior quarter it is up 33.3%.
OTIS 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 | $3.9B+7.3% | $3.6B+6.4% | $3.8B+3.3% | $3.7B+4.0% | $3.6B-0.2% | $3.4B-2.5% | $3.7B+1.5% | $3.5B+0.7% |
| R&D Expenses | $39.0M+2.6% | $38.0M+2.7% | $41.0M+10.8% | $36.0M-10.0% | $38.0M-2.6% | $37.0M+2.8% | $37.0M0.0% | $40.0M+11.1% |
| SG&A Expenses | $520.0M+4.2% | $510.0M+9.9% | $512.0M+3.4% | $504.0M+10.8% | $499.0M+11.1% | $464.0M+0.4% | $495.0M-0.6% | $455.0M+0.7% |
| Operating Income | $575.0M+5.1% | $539.0M+31.1% | $589.0M+10.9% | $586.0M+61.4% | $547.0M-4.0% | $411.0M-24.4% | $531.0M+1.7% | $363.0M-36.4% |
| EBITDA | $617.0M+4.4% | $580.0M+28.0% | $634.0M+9.5% | $630.0M+53.3% | $591.0M-3.3% | $453.0M-23.0% | $579.0M+1.6% | $411.0M-33.4% |
| Interest Expense | $62.0M+24.0% | $58.0M+1.8% | $57.0M+5.6% | $53.0M+23.3% | $50.0M+16.3% | $57.0M+32.6% | $54.0M+8.0% | $43.0M+13.2% |
| Income Tax | $98.0M0.0% | $127.0M+15.5% | $142.0M+9.2% | $129.0M+386.7% | $98.0M+4.3% | $110.0M-12.7% | $130.0M-2.3% | -$45.0M-132.8% |
| Net Income | $428.0M+8.9% | $340.0M+39.9% | $374.0M+11.0% | $374.0M-30.7% | $393.0M-5.3% | $243.0M-31.2% | $337.0M+4.3% | $540.0M+43.6% |
| EPS (Basic) | $1.12+12.0% | $0.88+44.3% | $0.95+11.8% | $0.96-28.9% | $1.00-2.9% | $0.61-29.9% | $0.85+6.2% | $1.35+46.7% |
| EPS (Diluted) | $1.12+13.1% | $0.87+42.6% | $0.95+13.1% | $0.95-29.1% | $0.99-2.9% | $0.61-29.1% | $0.84+6.3% | $1.34+47.3% |
| Diluted Shares (Avg) | 384M-3.1% | 390M-2.4% | N/A | 393M-2.5% | 396M-2.4% | 399M-2.2% | N/A | 403M-2.7% |
Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit.
OTIS 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 | $11.2B+6.3% | $10.5B-5.7% | $10.7B-5.9% | $10.8B+5.0% | $10.5B+6.5% | $11.2B+14.2% | $11.3B+11.9% | $10.3B-1.2% |
| Current Assets | $6.8B+7.1% | $6.5B-13.1% | $6.5B-15.2% | $6.6B+1.8% | $6.4B+2.4% | $7.4B+21.1% | $7.7B+19.8% | $6.5B-3.8% |
| Cash & Equivalents | $813.0M+18.2% | $834.0M-56.5% | $1.1B-52.3% | $840.0M+1.6% | $688.0M-27.0% | $1.9B+117.0% | $2.3B+80.5% | $827.0M-49.4% |
| Short-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Inventory | $686.0M+14.0% | $669.0M+14.2% | $613.0M+10.1% | $640.0M+2.4% | $602.0M-0.5% | $586.0M-1.2% | $557.0M-9.0% | $625.0M+0.2% |
| Accounts Receivable | $4.0B+7.8% | $3.9B+9.8% | $3.7B+7.6% | $3.8B+4.1% | $3.7B+2.5% | $3.6B-2.3% | $3.4B-3.1% | $3.6B+4.3% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $1.8B+5.1% | $1.7B+5.9% | $1.7B+9.5% | $1.7B+4.2% | $1.7B+9.9% | $1.6B+0.8% | $1.5B-2.5% | $1.6B+5.4% |
| Total Liabilities | $16.6B+5.8% | $16.0B-1.2% | $15.9B-0.7% | $16.1B+6.8% | $15.7B+6.5% | $16.2B+10.7% | $16.0B+8.1% | $15.0B+0.3% |
| Current Liabilities | $8.2B+13.5% | $7.7B-2.1% | $7.7B-1.2% | $7.1B-12.7% | $7.2B-8.2% | $7.9B+24.9% | $7.7B+19.6% | $8.1B+20.0% |
| Non-Current Liabilities | $8.4B-0.8% | $8.3B-0.3% | $8.3B-0.3% | $9.0B+29.5% | $8.5B+23.5% | $8.3B-0.1% | $8.3B-0.8% | $6.9B-15.8% |
| Long-Term Debt | $7.0B-0.4% | $6.9B-0.6% | $6.9B-1.0% | $7.6B+35.7% | $7.1B+28.0% | $6.9B+1.1% | $7.0B+1.6% | $5.6B-18.0% |
| Total Equity | -$5.7B-7.1% | -$5.7B-10.8% | -$5.4B-11.2% | -$5.4B-10.6% | -$5.4B-6.4% | -$5.1B-2.1% | -$4.8B+1.5% | -$4.9B-2.4% |
| Retained Earnings | -$117.0M+82.4% | -$378.0M+57.5% | -$440.0M+55.0% | -$453.0M+60.7% | -$663.0M+56.9% | -$889.0M+50.4% | -$978.0M+51.2% | -$1.2B+47.2% |
OTIS 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 | $267.0M+24.2% | $413.0M+117.4% | $817.0M+18.4% | $374.0M-5.1% | $215.0M-30.2% | $190.0M+11.1% | $690.0M+15.6% | $394.0M+28.8% |
| Depreciation & Amortization | $42.0M-4.5% | $41.0M-2.4% | $45.0M-6.3% | $44.0M-8.3% | $44.0M+7.3% | $42.0M-4.5% | $48.0M0.0% | $48.0M+4.3% |
| Stock-Based Compensation | $20.0M-13.0% | $19.0M-9.5% | N/A | $19.0M+18.8% | $23.0M+15.0% | $21.0M+31.3% | N/A | $16.0M+6.7% |
| Capital Expenditures | $44.0M+22.2% | $33.0M-2.9% | $45.0M+15.4% | $37.0M+15.6% | $36.0M+50.0% | $34.0M+9.7% | $39.0M-7.1% | $32.0M-5.9% |
| Free Cash Flow | $223.0M+24.6% | $380.0M+143.6% | $772.0M+18.6% | $337.0M-6.9% | $179.0M-37.0% | $156.0M+11.4% | $651.0M+17.3% | $362.0M+33.1% |
| Investing Cash Flow | -$331.0M-108.2% | $15.0M+109.3% | -$30.0M-165.2% | -$56.0M+50.4% | -$159.0M-783.3% | -$161.0M-103.8% | $46.0M+190.2% | -$113.0M-175.6% |
| Financing Cash Flow | $73.0M+105.6% | -$694.0M-62.1% | -$531.0M-167.0% | -$168.0M+60.3% | -$1.3B-510.4% | -$428.0M+8.4% | $793.0M+185.1% | -$423.0M-353.3% |
| Dividends Paid | $167.0M+1.8% | $163.0M+5.2% | $164.0M+5.1% | $164.0M+5.8% | $164.0M+4.5% | $155.0M+12.3% | $156.0M+12.2% | $155.0M+11.5% |
| Share Buybacks | $407.0M+32.1% | $400.0M+58.1% | $0-100.0% | $248.0M+24.0% | $308.0M+2.7% | $253.0M-15.7% | $207.0M-8.0% | $200.0M-11.1% |
OTIS 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 |
|---|---|---|---|---|---|---|---|---|
| Operating Margin | 14.9%-0.3pp | 15.1%+2.8pp | 15.5%+1.1pp | 15.9%+5.6pp | 15.2%-0.6pp | 12.3%-3.6pp | 14.4%0.0pp | 10.2%-6.0pp |
| Net Margin | 11.1%+0.2pp | 9.5%+2.3pp | 9.8%+0.7pp | 10.1%-5.1pp | 10.9%-0.6pp | 7.2%-3.0pp | 9.2%+0.3pp | 15.2%+4.5pp |
| Return on Assets | 3.8%+0.1pp | 3.2%+1.1pp | 3.5%+0.5pp | 3.5%-1.8pp | 3.7%-0.5pp | 2.2%-1.4pp | 3.0%-0.2pp | 5.3%+1.6pp |
| Current Ratio | 0.830.0x | 0.84-0.1x | 0.85-0.1x | 0.94+0.1x | 0.88+0.1x | 0.940.0x | 0.990.0x | 0.80-0.2x |
| Asset Turnover | 0.350.0x | 0.340.0x | 0.360.0x | 0.340.0x | 0.340.0x | 0.30-0.1x | 0.320.0x | 0.350.0x |
| FCF Margin | 5.8%+0.8pp | 10.7%+6.0pp | 20.3%+2.6pp | 9.1%-1.1pp | 5.0%-2.9pp | 4.7%+0.6pp | 17.7%+2.4pp | 10.2%+2.5pp |
Not reported in any period shown, so not listed: Gross Margin, Return on Equity, Debt-to-Equity.
Note: Shareholder equity is negative (-$5.4B), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.85), 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.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Otis Worldwide Corporation OTIS | FY2025 | $14.4B | $1.4B | 9.6% | $25.1B | 53/100 |
| Xylem Inc XYL | FY2025 | $9.0B | $957.0M | 10.6% | $24.0B | 68/100 |
| Ingersoll Rand Inc. IR | FY2025 | $7.7B | $581.4M | 7.6% | $30.6B | 61/100 |
| Rockwell Automation, Inc. ROK | FY2025 | $8.3B | $869.0M | 10.4% | $48.0B | 58/100 |
| Ametek, Inc. AME | FY2025 | $7.4B | $1.5B | 20.0% | $57.0B | 69/100 |
| Symbotic Inc. SYM | FY2025 | $2.2B | -$16.9M | -0.8% | $5.5B | 33/100 |
Where Otis Worldwide Corporation Ranks
Frequently Asked Questions
What is Otis Worldwide Corporation's annual revenue?
Otis Worldwide Corporation (OTIS) reported $14.4B in total revenue for fiscal year 2025. This represents a 1.2% 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 Otis Worldwide Corporation's revenue growing?
Otis Worldwide Corporation (OTIS) revenue grew by 1.2% year-over-year, from $14.3B to $14.4B in fiscal year 2025.
Is Otis Worldwide Corporation profitable?
Yes, Otis Worldwide Corporation (OTIS) reported a net income of $1.4B in fiscal year 2025, with a net profit margin of 9.6%.
What is Otis Worldwide Corporation's EBITDA?
Otis Worldwide Corporation (OTIS) had EBITDA of $2.3B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Otis Worldwide Corporation have?
As of fiscal year 2025, Otis Worldwide Corporation (OTIS) had $1.1B in cash and equivalents against $6.9B in long-term debt.
What is Otis Worldwide Corporation's operating margin?
Otis Worldwide Corporation (OTIS) had an operating margin of 14.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Otis Worldwide Corporation's net profit margin?
Otis Worldwide Corporation (OTIS) had a net profit margin of 9.6% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Otis Worldwide Corporation pay dividends?
Yes, Otis Worldwide Corporation (OTIS) paid $1.65 per share in dividends during fiscal year 2025.
What is Otis Worldwide Corporation's free cash flow?
Otis Worldwide Corporation (OTIS) generated $1.4B in free cash flow during fiscal year 2025. This represents a 0.5% 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 Otis Worldwide Corporation's operating cash flow?
Otis Worldwide Corporation (OTIS) generated $1.6B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Otis Worldwide Corporation's total assets?
Otis Worldwide Corporation (OTIS) had $10.7B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Otis Worldwide Corporation's capital expenditures?
Otis Worldwide Corporation (OTIS) invested $152.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Otis Worldwide Corporation spend on research and development?
Otis Worldwide Corporation (OTIS) invested $152.0M in research and development during fiscal year 2025.
What is Otis Worldwide Corporation's current ratio?
Otis Worldwide Corporation (OTIS) had a current ratio of 0.85 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Otis Worldwide Corporation's return on assets (ROA)?
Otis Worldwide Corporation (OTIS) had a return on assets of 13.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Otis Worldwide Corporation's P/E ratio?
Otis Worldwide Corporation (OTIS) trades at 16.6x earnings, its market capitalization divided by net income of $1.5B net income, trailing 12 months to June 30, 2026. The market capitalization is $25.1B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Otis Worldwide Corporation's price-to-sales ratio?
Otis Worldwide Corporation (OTIS) trades at 1.7x sales, its market capitalization divided by revenue of $14.9B revenue, trailing 12 months to June 30, 2026. The market capitalization is $25.1B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
Why is Otis Worldwide Corporation's debt-to-equity ratio negative or not reported?
Otis Worldwide Corporation (OTIS) has negative shareholder equity of -$5.4B as of fiscal year 2025, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Otis Worldwide Corporation's Altman Z-Score?
Otis Worldwide Corporation (OTIS) has an Altman Z-Score of 2.77, placing it in the Grey Zone (moderate 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 Otis Worldwide Corporation's Piotroski F-Score?
Otis Worldwide Corporation (OTIS) 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 Otis Worldwide Corporation's earnings high quality?
Otis Worldwide Corporation (OTIS) has an earnings quality ratio of 1.15x, 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 Otis Worldwide Corporation cover its interest payments?
Otis Worldwide Corporation (OTIS) has an interest coverage ratio of 9.83x, 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.
How financially healthy is Otis Worldwide Corporation?
Otis Worldwide Corporation (OTIS) scores 53 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.