Pricesmart Inc (PSMT) 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 17, 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 Jul 8, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the PSMT SEC filings page.
Pricesmart Inc (PSMT) reported $5.7B in revenue over the twelve months to May 31, 2026, up 10.2% 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).
PriceSmart converts steady sales growth into modest profits, while heavy inventory and expansion spending keep cash conversion uneven.
Operating cash conversion exceeded net income in FY2025—$261M versus$148M —showing that reported earnings were accompanied by cash from operations rather than merely accounting accruals. Yet capital expenditures of$158M left free cash flow at$103M , so reinvestment absorbs a meaningful part of that conversion.
At
Debt-to-equity of 0.1x and a current ratio of 1.3x indicate funding is primarily equity-based, with short-term assets exceeding obligations without implying a large liquidity cushion. Inventory rose from
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 Pricesmart 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.
Pricesmart Inc has an operating margin of 4.4%, meaning the company retains $4 of operating profit per $100 of revenue. This results in a moderate score of 64/100, indicating healthy but not exceptional operating efficiency. This is down from 4.5% the prior year.
Pricesmart Inc's revenue grew 7.2% year-over-year to $5.3B, a solid pace of expansion. This earns a growth score of 63/100.
Pricesmart 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 92/100, indicating a strong balance sheet with room for future borrowing.
Pricesmart Inc's current ratio of 1.34 indicates adequate short-term liquidity, earning a score of 35/100. The company can meet its near-term obligations, though with limited headroom.
Pricesmart Inc has a free cash flow margin of 2.0%, earning a moderate score of 31/100. The company generates positive cash flow after capital investments, but with room for improvement.
Pricesmart Inc earns a strong 11.9% return on equity (ROE), meaning it generates $12 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 86/100. This is down from 12.4% the prior year.
Pricesmart Inc scores 6.49, 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.
Pricesmart Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Pricesmart Inc generates $1.77 in operating cash flow ($261.3M OCF vs $147.9M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Pricesmart Inc earns $20.19 in operating income for every $1 of interest expense ($232.5M vs $11.5M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Pricesmart Inc generated $1.5B in revenue in Q3 2026. This represents an increase of 12.5% from the same quarter a year earlier. Against the prior quarter it is down 0.9%.
Pricesmart Inc's EBITDA was $90.4M in Q3 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 14.5% from the same quarter a year earlier. Against the prior quarter it is down 9.3%.
Pricesmart Inc reported $39.7M in net income in Q3 2026. This represents an increase of 12.9% from the same quarter a year earlier. Against the prior quarter it is down 19.1%.
Pricesmart Inc earned $1.28 per diluted share (EPS) in Q3 2026. This represents an increase of 12.3% from the same quarter a year earlier. Against the prior quarter it is down 21.0%.
Cash & Balance Sheet
Pricesmart Inc generated $3.2M in free cash flow in Q3 2026, representing cash available after capex. This represents a decrease of 77.2% from the same quarter a year earlier. Against the prior quarter it is down 74.0%.
Pricesmart Inc held $208.4M in cash against $114.4M in long-term debt as of Q3 2026.
Not reported for Q3 2026.
Margins & Returns
Pricesmart Inc's gross margin was 17.7% in Q3 2026, indicating the percentage of revenue retained after direct costs. This is up 0.3 percentage points from the same quarter a year earlier. It is unchanged from the prior quarter.
Pricesmart Inc's operating margin was 4.4% in Q3 2026, reflecting core business profitability. This is up 0.2 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.6 percentage points.
Pricesmart Inc's net profit margin was 2.7% in Q3 2026, showing the share of revenue converted to profit. That is unchanged from the same quarter a year earlier. Against the prior quarter it is down 0.6 percentage points.
Pricesmart Inc's ROE was 2.9% in Q3 2026, measuring profit generated per dollar of shareholder equity. This is down 0.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.8 percentage points.
Capital Allocation
Pricesmart Inc spent $113K on share buybacks in Q3 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 7.6% from the same quarter a year earlier. Against the prior quarter it is down 97.0%.
Pricesmart Inc invested $55.7M in capex in Q3 2026, funding long-term assets and infrastructure. This represents an increase of 43.7% from the same quarter a year earlier. Against the prior quarter it is up 12.0%.
Not reported for Q3 2026.
PSMT 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-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Revenue | $1.5B+12.5% | $1.5B+9.7% | $1.4B+9.9% | $1.3B+8.6% | $1.3B+7.1% | $1.4B+5.6% | $1.3B+7.8% | $1.2B+9.6% |
| Cost of Revenue | $1.2B+12.1% | $1.2B+8.9% | $1.1B+9.6% | $1.1B | $1.1B | $1.1B | $1.0B | N/A |
| Gross Profit | $262.2M+14.2% | $265.1M+13.4% | $244.4M+11.6% | $231.9M | $229.7M | $233.8M | $219.1M | N/A |
| SG&A Expenses | $51.4M+9.2% | $49.7M+15.6% | $49.3M+15.8% | $47.2M+13.2% | $47.1M+16.4% | $43.0M+10.9% | $42.6M+20.1% | $41.7M+20.8% |
| Operating Income | $65.6M+16.7% | $75.4M+15.6% | $62.9M+8.0% | $52.8M+7.2% | $56.2M+12.7% | $65.3M+2.6% | $58.3M+0.1% | $49.2M+53.1% |
| EBITDA | $90.4M+14.5% | $99.7M+14.5% | $86.9M+9.8% | $75.5M+6.8% | $79.0M+11.2% | $87.0M+3.5% | $79.1M+1.8% | $70.7M+37.1% |
| Interest Expense | $3.9M+39.4% | $4.0M+56.0% | $4.4M+64.0% | $3.5M+7.6% | $2.8M-22.8% | $2.5M-22.9% | $2.7M-4.3% | $3.3M+20.7% |
| Income Tax | $15.4M+11.0% | $17.6M+7.4% | $15.5M+15.1% | $14.8M+16.5% | $13.9M-3.9% | $16.4M-5.1% | $13.5M-25.7% | $12.7M-16.9% |
| Net Income | $39.7M+12.9% | $49.1M+12.2% | $40.2M+7.3% | $31.5M+8.5% | $35.2M+8.2% | $43.8M+11.4% | $37.4M-1.6% | $29.1M+89.0% |
| EPS (Basic) | $1.28+12.3% | $1.62+11.7% | $1.29+6.6% | $1.02+7.4% | $1.14+5.6% | $1.45+10.7% | $1.21-2.4% | $0.95+93.9% |
| EPS (Diluted) | $1.28+12.3% | $1.62+11.7% | $1.29+6.6% | $1.02+7.4% | $1.14+5.6% | $1.45+10.7% | $1.21-2.4% | $0.95+93.9% |
| Diluted Shares (Avg) | 30M+0.6% | 30M+0.6% | 30M+0.5% | N/A | 30M+0.4% | 30M+0.5% | 30M-0.8% | N/A |
Not reported in any period shown, so not listed: R&D Expenses.
PSMT 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-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $2.5B+17.5% | $2.4B+16.4% | $2.4B+14.7% | $2.3B+12.2% | $2.1B+6.1% | $2.1B+2.7% | $2.1B+2.9% | $2.0B+0.9% |
| Current Assets | $1.1B+18.1% | $1.0B+19.1% | $1.1B+17.9% | $974.5M+17.1% | $900.8M+9.5% | $875.1M+3.2% | $892.5M+1.3% | $832.3M-5.1% |
| Cash & Equivalents | $208.4M+24.1% | $156.2M+19.9% | $206.4M+70.7% | $241.0M+92.3% | $168.0M+30.9% | $130.4M-23.6% | $120.9M-30.7% | $125.4M-47.8% |
| Short-Term Investments | $113.7M+20.5% | $149.7M+28.0% | $114.2M+12.7% | $73.2M-26.9% | $94.4M-5.5% | $116.9M+24.9% | $101.3M+15.1% | $100.2M+10.0% |
| Inventory | $623.1M+12.6% | $623.1M+13.4% | $618.8M+5.6% | $560.7M+6.1% | $553.1M+7.1% | $549.7M+9.4% | $585.9M+10.6% | $528.7M+12.1% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $43.3M+0.1% | $43.3M+0.1% | $43.2M+0.1% | $43.2M+0.1% | $43.2M+0.1% | $43.2M+0.2% | $43.2M+0.2% | $43.2M+0.2% |
| Total Liabilities | $1.1B+21.1% | $1.1B+20.0% | $1.1B+17.2% | $1.0B+13.6% | $930.2M+0.5% | $920.1M-2.4% | $929.1M-1.9% | $899.7M+0.1% |
| Current Liabilities | $833.0M+18.7% | $805.2M+14.7% | $788.9M+11.5% | $726.3M+6.8% | $701.8M+1.1% | $701.8M-1.0% | $707.6M+0.3% | $680.1M+7.2% |
| Non-Current Liabilities | $293.8M+28.6% | $298.5M+36.7% | $300.2M+35.5% | $295.5M+34.6% | $228.5M-1.1% | $218.3M-6.8% | $221.5M-8.4% | $219.6M-16.9% |
| Long-Term Debt | $114.4M+32.7% | $129.1M+45.4% | $143.7M+53.6% | $147.9M+56.6% | $86.2M-12.5% | $88.8M-13.2% | $93.6M-6.2% | $94.4M-21.0% |
| Total Equity | $1.4B+14.7% | $1.3B+13.7% | $1.3B+12.6% | $1.2B+11.1% | $1.2B+10.8% | $1.2B+7.2% | $1.2B+7.1% | $1.1B+1.4% |
| Retained Earnings | $1.1B+12.1% | $1.0B+12.1% | $1.0B+12.1% | $999.4M+12.3% | $967.8M+12.4% | $932.7M+8.5% | $927.7M+8.4% | $890.3M+8.9% |
Not reported in any period shown, so not listed: Accounts Receivable.
PSMT 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-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $58.9M+11.7% | $62.0M-29.4% | $71.2M+84.9% | $82.1M+96.4% | $52.8M+38.6% | $87.9M+1.5% | $38.5M-6.2% | $41.8M-42.4% |
| Depreciation & Amortization | $24.8M+8.9% | $24.3M+11.5% | $24.0M+14.9% | $22.8M+5.9% | $22.8M+7.7% | $21.8M+6.2% | $20.9M+7.0% | $21.5M+10.6% |
| Stock-Based Compensation | N/A | N/A | $5.7M+26.4% | N/A | N/A | N/A | $4.5M+26.7% | N/A |
| Capital Expenditures | $55.7M+43.7% | $49.7M+43.6% | $38.6M+37.0% | $56.5M+112.0% | $38.8M+1.0% | $34.6M-50.7% | $28.2M-15.4% | $26.7M-42.0% |
| Free Cash Flow | $3.2M-77.2% | $12.3M-76.9% | $32.6M+215.3% | $25.6M+68.8% | $14.0M+4645.8% | $53.2M+224.7% | $10.3M+32.7% | $15.2M-43.2% |
| Investing Cash Flow | -$19.7M-20.9% | -$79.1M-57.6% | -$90.3M-208.0% | -$33.1M-26.9% | -$16.3M+63.1% | -$50.2M+33.2% | -$29.3M+2.7% | -$26.1M-7.4% |
| Financing Cash Flow | $15.7M+1452.9% | -$46.3M-100.0% | -$16.1M+8.2% | $56.1M+317.8% | -$1.2M+96.4% | -$23.1M-29.8% | -$17.6M+76.4% | -$25.7M+8.1% |
| Dividends Paid | $0 | N/A | N/A | $19.4M+9.2% | $0-100.0% | N/A | N/A | $17.7M+24.4% |
| Share Buybacks | $113K+7.6% | $3.7M+51.7% | $5.1M+54.0% | $853K-47.8% | $105K-7.9% | $2.5M+39.3% | $3.3M-95.3% | $1.6M-76.2% |
PSMT 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-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.7%+0.3pp | 17.7%+0.6pp | 17.7%+0.3pp | 17.4% | 17.4% | 17.1% | 17.4% | N/A |
| Operating Margin | 4.4%+0.2pp | 5.0%+0.3pp | 4.5%-0.1pp | 4.0%0.0pp | 4.3%+0.2pp | 4.8%-0.1pp | 4.6%-0.4pp | 4.0%+1.1pp |
| Net Margin | 2.7%0.0pp | 3.3%+0.1pp | 2.9%-0.1pp | 2.4%0.0pp | 2.7%0.0pp | 3.2%+0.2pp | 3.0%-0.3pp | 2.4%+1.0pp |
| Return on Equity | 2.9%-0.1pp | 3.7%-0.1pp | 3.1%-0.2pp | 2.5%-0.1pp | 2.9%-0.1pp | 3.7%+0.1pp | 3.2%-0.3pp | 2.6%+1.2pp |
| Return on Assets | 1.6%-0.1pp | 2.0%-0.1pp | 1.7%-0.1pp | 1.4%-0.1pp | 1.6%0.0pp | 2.1%+0.2pp | 1.8%-0.1pp | 1.4%+0.7pp |
| Current Ratio | 1.280.0x | 1.290.0x | 1.33+0.1x | 1.34+0.1x | 1.28+0.1x | 1.25+0.1x | 1.260.0x | 1.22-0.2x |
| Debt-to-Equity | 0.080.0x | 0.100.0x | 0.110.0x | 0.120.0x | 0.070.0x | 0.080.0x | 0.080.0x | 0.080.0x |
| Asset Turnover | 0.590.0x | 0.610.0x | 0.580.0x | 0.590.0x | 0.610.0x | 0.650.0x | 0.600.0x | 0.610.0x |
| FCF Margin | 0.2%-0.8pp | 0.8%-3.1pp | 2.4%+1.5pp | 1.9%+0.7pp | 1.1%+1.1pp | 3.9%+2.6pp | 0.8%+0.2pp | 1.2%-1.2pp |
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 |
|---|---|---|---|---|---|---|
| Pricesmart Inc PSMT | FY2025 | $5.3B | $147.9M | 2.8% | $5.2B | 62/100 |
| Ollie's Bargain Outlet Holdings, Inc. OLLI | FY2025 | $2.6B | $240.6M | 9.1% | $5.5B | 73/100 |
| Dollar Tree Inc. DLTR | FY2025 | $19.4B | $1.3B | 6.6% | $23.3B | 55/100 |
| BJs Wholesale Club Holdings, Inc. BJ | FY2025 | $21.5B | $578.0M | 2.7% | $13.0B | 50/100 |
| Dollar General Corp. DG | FY2025 | $42.7B | $1.5B | 3.5% | $29.6B | 47/100 |
Where Pricesmart Inc Ranks
Frequently Asked Questions
What is Pricesmart Inc's annual revenue?
Pricesmart Inc (PSMT) reported $5.3B in total revenue for fiscal year 2025. This represents a 7.2% 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 Pricesmart Inc's revenue growing?
Pricesmart Inc (PSMT) revenue grew by 7.2% year-over-year, from $4.9B to $5.3B in fiscal year 2025.
Is Pricesmart Inc profitable?
Yes, Pricesmart Inc (PSMT) reported a net income of $147.9M in fiscal year 2025, with a net profit margin of 2.8%.
What is Pricesmart Inc's EBITDA?
Pricesmart Inc (PSMT) had EBITDA of $320.7M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Pricesmart Inc have?
As of fiscal year 2025, Pricesmart Inc (PSMT) had $241.0M in cash and equivalents against $147.9M in long-term debt.
What is Pricesmart Inc's gross margin?
Pricesmart Inc (PSMT) had a gross margin of 17.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Pricesmart Inc's operating margin?
Pricesmart Inc (PSMT) had an operating margin of 4.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Pricesmart Inc's net profit margin?
Pricesmart Inc (PSMT) had a net profit margin of 2.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Pricesmart Inc pay dividends?
Yes, Pricesmart Inc (PSMT) paid $1.26 per share in dividends during fiscal year 2025.
What is Pricesmart Inc's return on equity (ROE)?
Pricesmart Inc (PSMT) has a return on equity of 11.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Pricesmart Inc's free cash flow?
Pricesmart Inc (PSMT) generated $103.2M in free cash flow during fiscal year 2025. This represents a 164.2% 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 Pricesmart Inc's operating cash flow?
Pricesmart Inc (PSMT) generated $261.3M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Pricesmart Inc's total assets?
Pricesmart Inc (PSMT) had $2.3B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Pricesmart Inc's capital expenditures?
Pricesmart Inc (PSMT) invested $158.1M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Pricesmart Inc's current ratio?
Pricesmart Inc (PSMT) had a current ratio of 1.34 as of fiscal year 2025, which is considered adequate.
What is Pricesmart Inc's debt-to-equity ratio?
Pricesmart Inc (PSMT) 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 Pricesmart Inc's return on assets (ROA)?
Pricesmart Inc (PSMT) had a return on assets of 6.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Pricesmart Inc's P/E ratio?
Pricesmart Inc (PSMT) trades at 32.7x earnings, its market capitalization divided by net income of $160.5M net income, trailing 12 months to May 31, 2026. The market capitalization is $5.2B as of Oct 17, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Pricesmart Inc's price-to-sales ratio?
Pricesmart Inc (PSMT) trades at 0.9x sales, its market capitalization divided by revenue of $5.7B revenue, trailing 12 months to May 31, 2026. The market capitalization is $5.2B as of Oct 17, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Pricesmart Inc's Altman Z-Score?
Pricesmart Inc (PSMT) has an Altman Z-Score of 6.49, 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 Pricesmart Inc's Piotroski F-Score?
Pricesmart Inc (PSMT) 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.
Are Pricesmart Inc's earnings high quality?
Pricesmart Inc (PSMT) has an earnings quality ratio of 1.77x, 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 Pricesmart Inc cover its interest payments?
Pricesmart Inc (PSMT) has an interest coverage ratio of 20.19x, 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 Pricesmart Inc?
Pricesmart Inc (PSMT) scores 62 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.