Phibro Animal Health Corporation (PAHC) 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 30, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-K for FY2026, filed Aug 26, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the PAHC SEC filings page.
Phibro Animal Health Corporation (PAHC) reported $1.5B in revenue for fiscal year 2026, up 17.1% from the prior fiscal year. 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).
Phibro’s growth is widening margins, but inventory and reinvestment are absorbing much of the resulting cash.
Between FY2024 and FY2026, inventory increased101.2% while free cash flow fell78.7% ; that divergence suggests expansion is tying cash up in stock rather than converting growth cleanly into cash. Capital expenditures consumed85.7% of operating cash flow in FY2026, leaving little cash after reinvestment.
FY2026 gross profit reached
Net income was
Financial Health Signals
Scored against operating companies for FY2026. 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 Phibro Animal Health 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.
Phibro Animal Health Corporation has an operating margin of 12.8%, meaning the company retains $13 of operating profit per $100 of revenue. This strong profitability earns a score of 65/100, reflecting efficient cost management and pricing power. This is up from 8.5% the prior year.
Phibro Animal Health Corporation's revenue surged 17.1% year-over-year to $1.5B, reflecting rapid business expansion. This strong growth earns a score of 83/100.
With a current ratio of 2.96, Phibro Animal Health Corporation holds $2.96 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 78/100.
While Phibro Animal Health Corporation generated $69.0M in operating cash flow, capex of $59.1M consumed most of it, leaving $9.9M in free cash flow. This results in a low score of 35/100, reflecting heavy capital investment rather than weak cash generation.
Phibro Animal Health Corporation earns a strong 25.9% return on equity (ROE), meaning it generates $26 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 73/100. This is up from 16.9% the prior year.
Phibro Animal Health Corporation scores 3.11, well above the 2.99 safe threshold. The largest contribution to the score comes from revenue of $1.5B against total assets of $1.5B. 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.
Phibro Animal Health Corporation passes 6 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 1 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Phibro Animal Health Corporation generates $0.69 in operating cash flow ($69.0M OCF vs $99.7M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Phibro Animal Health Corporation earns $4.19 in operating income for every $1 of interest expense ($194.4M vs $46.4M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Phibro Animal Health Corporation generated $396.7M in revenue in Q4 2026. This represents an increase of 4.8% from the same quarter a year earlier. Against the prior quarter it is up 3.4%.
Phibro Animal Health Corporation's EBITDA was $61.5M in Q4 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 33.3% from the same quarter a year earlier. Against the prior quarter it is up 7.7%.
Phibro Animal Health Corporation reported $21.7M in net income in Q4 2026. This represents an increase of 26.0% from the same quarter a year earlier. Against the prior quarter it is down 9.6%.
Phibro Animal Health Corporation earned $0.53 per diluted share (EPS) in Q4 2026. This represents an increase of 23.3% from the same quarter a year earlier. Against the prior quarter it is down 10.2%.
Cash & Balance Sheet
Phibro Animal Health Corporation generated $5.2M in free cash flow in Q4 2026, representing cash available after capex. This represents a decrease of 35.7% from the same quarter a year earlier. Against the prior quarter it is up 487.1%.
Phibro Animal Health Corporation held $61.4M in cash as of Q4 2026; no long-term debt figure is on record for that period.
Not reported for Q4 2026.
Margins & Returns
Phibro Animal Health Corporation's gross margin was 33.9% in Q4 2026, indicating the percentage of revenue retained after direct costs. This is up 4.8 percentage points from the same quarter a year earlier. Against the prior quarter it is up 1.1 percentage points.
Phibro Animal Health Corporation's operating margin was 12.1% in Q4 2026, reflecting core business profitability. This is up 3.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 0.5 percentage points.
Phibro Animal Health Corporation's net profit margin was 5.5% in Q4 2026, showing the share of revenue converted to profit. This is up 0.9 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.8 percentage points.
Phibro Animal Health Corporation's quarterly ROE was 5.6% in Q4 2026: one quarter's net income over shareholder equity, not annualized. This is down 0.4 percentage points from the same quarter a year earlier. Against the prior quarter it is down 1.0 percentage points.
Capital Allocation
Phibro Animal Health Corporation invested $18.9M in capex in Q4 2026, funding long-term assets and infrastructure. This represents an increase of 43.6% from the same quarter a year earlier. Against the prior quarter it is up 23.2%.
Not reported for Q4 2026.
Not reported for Q4 2026.
PAHC 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 | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $396.7M+4.8% | $383.5M+10.3% | $373.9M+20.9% | $363.9M+39.7% | $378.7M+38.6% | $347.8M+32.1% | $309.3M+23.7% | $260.4M+12.6% |
| Cost of Revenue | $262.3M-2.4% | $257.9M+6.0% | $241.3M+16.3% | $244.1M+38.0% | $268.7M+44.4% | $243.3M+32.5% | $207.4M+21.0% | $176.9M+8.1% |
| Gross Profit | $134.4M+22.2% | $125.7M+20.2% | $132.7M+30.2% | $119.8M+43.5% | $110.0M+26.2% | $104.6M+31.4% | $101.9M+29.6% | $83.5M+23.3% |
| SG&A Expenses | $86.2M+13.0% | $81.0M+14.0% | $82.3M+7.9% | $68.5M+4.1% | $76.3M+11.0% | $71.1M+19.1% | $76.3M+21.3% | $65.8M-3.9% |
| Operating Income | $48.2M+42.8% | $44.7M+33.2% | $50.3M+97.1% | $51.3M+189.6% | $33.7M+83.1% | $33.5M+68.2% | $25.5M+62.6% | $17.7Mn/m |
| EBITDA | $61.5M+33.3% | $57.1M+23.8% | $63.2M+70.4% | $64.1M+140.0% | $46.1M+67.0% | $46.1M+58.4% | $37.1M+50.8% | $26.7M+227.8% |
| Interest Expense | $10.7M+18.6% | $10.7M+10.6% | $12.5M+27.6% | $12.5M+43.1% | $9.0M+50.5% | $9.7M+71.0% | $9.8M+70.9% | $8.8M+55.3% |
| Income Tax | $10.6M+60.5% | $8.3M-5.9% | $9.0M+442.4% | $9.7M+268.2% | $6.6M+17.1% | $8.8M+95.0% | $1.7M-27.8% | $2.6Mn/m |
| Net Income | $21.7M+26.0% | $24.0M+15.1% | $27.5M+762.1% | $26.5M+280.3% | $17.2M+2190.4% | $20.9M+148.4% | $3.2M+150.0% | $7.0Mn/m |
| EPS (Basic) | $0.54+28.6% | $0.59+13.5% | $0.68+750.0% | $0.65+282.4% | $0.42+2000.0% | $0.52+147.6% | $0.08+166.7% | $0.17n/m |
| EPS (Diluted) | $0.53+23.3% | $0.59+15.7% | $0.67+737.5% | $0.65+282.4% | $0.43+2050.0% | $0.51+142.9% | $0.08+166.7% | $0.17n/m |
| Diluted Shares (Avg) | N/A | 41M+0.8% | 41M+0.6% | 41M+0.7% | N/A | 41M+0.5% | 41M+0.5% | 41M+0.2% |
Not reported in any period shown, so not listed: R&D Expenses.
PAHC 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 | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $1.5B+10.3% | $1.4B+9.7% | $1.4B+9.3% | $1.4B+43.4% | $1.4B+38.6% | $1.3B+34.5% | $1.3B+32.2% | $966.3M+0.2% |
| Current Assets | $935.5M+15.4% | $894.1M+15.2% | $862.2M+15.6% | $835.8M+46.4% | $810.6M+34.9% | $776.0M+29.9% | $746.2M+27.2% | $570.8M-2.3% |
| Cash & Equivalents | $61.4M-9.7% | $54.9M-9.0% | $55.5M-17.3% | $72.8M+40.4% | $68.0M-3.6% | $60.4M+20.2% | $67.1M+103.4% | $51.8M+20.1% |
| Short-Term Investments | $20.6M+128.6% | $22.5M+125.2% | $19.0Mn/m | $12.5M-67.1% | $9.0M-79.5% | $10.0M-79.4% | $0-100.0% | $38.0M-20.8% |
| Inventory | $534.9M+20.4% | $539.7M+20.4% | $517.3M+21.1% | $471.8M+73.1% | $444.4M+67.1% | $448.4M+58.8% | $427.2M+49.0% | $272.6M-2.4% |
| Accounts Receivable | $238.8M+4.7% | $221.5M+12.2% | $215.9M+12.6% | $217.9M+35.5% | $228.0M+34.5% | $197.5M+22.6% | $191.8M+27.3% | $160.8M+7.7% |
| Long-Term Investments | $8.8M+70.3% | $8.3Mn/m | $8.7Mn/m | $8.3Mn/m | $5.1Mn/m | $0n/m | $0n/m | $0n/m |
| Goodwill | $60.0M+0.7% | $59.9M+9.7% | $59.8M+9.7% | $59.7M+9.4% | $59.6M+9.3% | $54.6M-0.1% | $54.5M-0.2% | $54.6M+2.5% |
| Total Liabilities | $1.1B+3.8% | $1.1B+3.0% | $1.1B+3.3% | $1.1B+51.7% | $1.1B+48.2% | $1.1B+48.3% | $1.0B+48.0% | $707.8M+2.4% |
| Current Liabilities | $316.5M+7.8% | $281.9M+5.8% | $282.4M+21.1% | $270.1M+52.7% | $293.5M+43.8% | $266.5M+40.9% | $233.3M+24.2% | $176.9M+2.6% |
| Non-Current Liabilities | $799.3M+2.2% | $801.4M+2.1% | $790.8M-1.8% | $803.7M+51.4% | $781.7M+49.9% | $784.8M+51.0% | $805.5M+56.7% | $530.9M+2.3% |
| Long-Term Debt | N/A | $597.7M-3.5% | $603.6M-3.1% | $609.5M+111.9% | $615.4M+118.0% | $619.2M+112.8% | $622.9M+109.1% | $287.7M-5.6% |
| Total Equity | $385.5M+34.9% | $361.8M+36.0% | $332.4M+34.7% | $311.7M+20.6% | $285.7M+11.3% | $266.0M-1.5% | $246.8M-8.9% | $258.5M-5.3% |
| Retained Earnings | $353.0M+29.4% | $336.1M+29.1% | $317.0M+29.7% | $294.4M+19.7% | $272.7M+11.8% | $260.3M+5.0% | $244.3M-0.1% | $246.0M-0.8% |
PAHC 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 | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $24.1M+13.3% | $16.2M-62.4% | $19.4M+529.1% | $9.3M-26.3% | $21.3M-25.2% | $43.2M+278.3% | $3.1M-90.3% | $12.6M-22.1% |
| Depreciation & Amortization | $13.3M+7.5% | $12.4M-1.3% | $12.9M+11.4% | $12.8M+42.5% | $12.4M+34.9% | $12.6M+37.2% | $11.6M+29.9% | $9.0M+1.5% |
| Stock-Based Compensation | N/A | N/A | N/A | $339K+89.4% | N/A | N/A | N/A | $179K+121.0% |
| Capital Expenditures | $18.9M+43.6% | $15.3M+97.7% | $11.1M+41.9% | $13.8M+44.1% | $13.1M+0.5% | $7.7M-20.4% | $7.8M-28.6% | $9.6M+28.2% |
| Free Cash Flow | $5.2M-35.7% | $890K-97.5% | $8.3Mn/m | -$4.5M-248.2% | $8.1M-47.1% | $35.4M+2011.4% | -$4.7M-123.0% | $3.0M-65.2% |
| Investing Cash Flow | -$16.5Mn/m | -$16.8Mn/m | -$17.2Mn/m | -$21.0Mn/m | -$7.0Mn/m | -$18.3M-1715.1% | -$260.5Mn/m | -$2.9Mn/m |
| Financing Cash Flow | -$1.6Mn/m | -$2.3Mn/m | -$19.0M-106.9% | $16.3Mn/m | -$7.8M-534.6% | -$32.2M-763.8% | $276.3Mn/m | -$29.2M-2352.9% |
| Dividends Paid | $4.9M+0.1% | $4.9M+0.1% | $4.9M+0.1% | $4.9M+0.1% | $4.9M+0.1% | $4.9M+0.1% | $4.9M0.0% | $4.9M0.0% |
Not reported in any period shown, so not listed: Share Buybacks.
PAHC 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 | Q4'2610-K | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-K | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.9%+4.8pp | 32.8%+2.7pp | 35.5%+2.5pp | 32.9%+0.9pp | 29.0%-2.9pp | 30.1%-0.2pp | 32.9%+1.5pp | 32.1%+2.8pp |
| Operating Margin | 12.1%+3.2pp | 11.6%+2.0pp | 13.5%+5.2pp | 14.1%+7.3pp | 8.9%+2.2pp | 9.6%+2.1pp | 8.3%+2.0pp | 6.8%+7.1pp |
| Net Margin | 5.5%+0.9pp | 6.3%+0.3pp | 7.3%+6.3pp | 7.3%+4.6pp | 4.5%+4.3pp | 6.0%+2.8pp | 1.0%+0.5pp | 2.7%+6.1pp |
| Return on Equity | 5.6%-0.4pp | 6.6%-1.2pp | 8.3%+7.0pp | 8.5%+5.8pp | 6.0%+5.7pp | 7.8%+4.7pp | 1.3%+0.8pp | 2.7%+5.6pp |
| Return on Assets | 1.5%+0.2pp | 1.7%+0.1pp | 1.9%+1.7pp | 1.9%+1.2pp | 1.3%+1.2pp | 1.6%+0.7pp | 0.3%+0.1pp | 0.7%+1.6pp |
| Current Ratio | 2.96+0.2x | 3.17+0.3x | 3.05-0.1x | 3.09-0.1x | 2.76-0.2x | 2.91-0.2x | 3.20+0.1x | 3.23-0.2x |
| Debt-to-Equity | N/A | 1.65-0.7x | 1.82-0.7x | 1.96+0.8x | 2.15+1.1x | 2.33+1.3x | 2.52+1.4x | 1.110.0x |
| Liabilities-to-Equity | 2.89-0.9x | 2.99-1.0x | 3.23-1.0x | 3.45+0.7x | 3.76+0.9x | 3.95+1.3x | 4.21+1.6x | 2.74+0.2x |
| Asset Turnover | 0.260.0x | 0.270.0x | 0.270.0x | 0.260.0x | 0.280.0x | 0.260.0x | 0.240.0x | 0.270.0x |
| FCF Margin | 1.3%-0.8pp | 0.2%-10.0pp | 2.2%+3.7pp | -1.2%-2.4pp | 2.1%-3.5pp | 10.2%+9.5pp | -1.5%-9.8pp | 1.2%-2.6pp |
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. Market cap is stated at each company's latest close.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Phibro Animal Health Corporation PAHC | FY2026 | $1.5B | $99.7M | 6.6% | $1.6B | 59/100 |
| ANI Pharmaceuticals, Inc. ANIP | FY2025 | $883.4M | $78.3M | 8.9% | $1.7B | 68/100 |
| Alvotech ALVO | FY2025 | $586.3M | $27.9M | 4.8% | $1.7B | 34/100 |
| Eton Pharmaceutcials, Inc. ETON | FY2025 | $80.0M | -$4.6M | -5.8% | $1.5B | 63/100 |
| Pacira BioSciences, Inc. PCRX | FY2025 | $726.4M | $7.0M | 1.0% | $1.5B | 52/100 |
| Xeris Biopharma Holdings, Inc. XERS | FY2025 | $291.8M | $554K | 0.2% | $2.0B | 44/100 |
Where Phibro Animal Health Corporation Ranks
Frequently Asked Questions
Phibro Animal Health Corporation (PAHC) reported $1.5B in total revenue for fiscal year 2026. This represents a 17.1% 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.
Phibro Animal Health Corporation (PAHC) revenue grew by 17.1% year-over-year, from $1.3B to $1.5B in fiscal year 2026.
Yes, Phibro Animal Health Corporation (PAHC) reported a net income of $99.7M in fiscal year 2026, with a net profit margin of 6.6%.
Phibro Animal Health Corporation (PAHC) had EBITDA of $245.9M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
Phibro Animal Health Corporation (PAHC) had a gross margin of 33.8% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
Phibro Animal Health Corporation (PAHC) had an operating margin of 12.8% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
Phibro Animal Health Corporation (PAHC) had a net profit margin of 6.6% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Yes, Phibro Animal Health Corporation (PAHC) paid $0.48 per share in dividends during fiscal year 2026.
Phibro Animal Health Corporation (PAHC) has a return on equity of 25.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
Phibro Animal Health Corporation (PAHC) generated $9.9M in free cash flow during fiscal year 2026. This represents a -76.4% 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.
Phibro Animal Health Corporation (PAHC) generated $69.0M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
Phibro Animal Health Corporation (PAHC) had $1.5B in total assets as of fiscal year 2026, including both current and long-term assets.
Phibro Animal Health Corporation (PAHC) invested $59.1M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
Phibro Animal Health Corporation (PAHC) invested $24.6M in research and development during fiscal year 2026.
Phibro Animal Health Corporation (PAHC) had a current ratio of 2.96 as of fiscal year 2026, which is generally considered healthy.
Phibro Animal Health Corporation (PAHC) had a liabilities-to-equity ratio of 2.89 as of fiscal year 2026, 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. No debt-to-equity ratio is shown for fiscal year 2026, because the filing data we hold for that year carries no long-term debt figure.
Phibro Animal Health Corporation (PAHC) had a return on assets of 6.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
Phibro Animal Health Corporation (PAHC) trades at 15.8x earnings, its market capitalization divided by $99.7M net income, FY2026. The market capitalization is $1.6B as of Oct 30, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
Phibro Animal Health Corporation (PAHC) trades at 1.0x sales, its market capitalization divided by $1.5B revenue, FY2026. The market capitalization is $1.6B as of Oct 30, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
Phibro Animal Health Corporation (PAHC) has an Altman Z-Score of 3.11, 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.
Phibro Animal Health Corporation (PAHC) has a Piotroski F-Score of 6 out of 7 computable signals; 2 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.
Phibro Animal Health Corporation (PAHC) has an earnings quality ratio of 0.69x, 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.
Phibro Animal Health Corporation (PAHC) has an interest coverage ratio of 4.19x, 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.
Phibro Animal Health Corporation (PAHC) scores 59 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.