Schrodinger, Inc. (SDGR) 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 Sep 11, 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 SDGR SEC filings page.
Schrodinger, Inc. (SDGR) reported $259.0M in revenue over the twelve months to Jun 30, 2026, up 8.9% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 7 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).
Revenue growth is being converted into positive cash flow, but heavier operating investment and leverage still suppress reported earnings.
The 2025 cash-flow turnaround produced operating cash flow of$13.9M while net income remained-$103.3M , a divergence pointing to non-earnings cash drivers. Positive free cash flow also depended on capital expenditures of only$1.4M , so reported cash generation reflects low reinvestment as much as operating improvement.
Revenue reached
The FY2025 balance sheet had liabilities nearly matching equity, with debt-to-equity at 1.0x, up from
Financial Health Signals
Scored against emerging 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 Schrodinger, 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.
Schrodinger, Inc. held $395.5M in cash, cash equivalents and investments at the end of fiscal year 2025, and its operations generated $13.9M of cash that year. Cash Runway ranks emerging companies on the size of that balance against the outflow behind it, and Schrodinger, Inc. scores 85/100 among other emerging companies.
Not available for Schrodinger, Inc., and counted as zero in the overall score.
Schrodinger, Inc. spent $173.1M on research and development in fiscal year 2025, which was 41.0% of its operating costs that year. R&D Intensity ranks emerging companies on the share of operating costs that goes into research, and Schrodinger, Inc. scores 72/100 among other emerging companies.
Schrodinger, Inc. reported revenue of $255.9M in fiscal year 2025, against $207.5M in fiscal year 2024. Revenue Progress ranks emerging companies on the three-year path of that line, and Schrodinger, Inc. scores 54/100 among other emerging companies.
Schrodinger, Inc.'s operations generated $13.9M of cash in fiscal year 2025, against $157.4M used in fiscal year 2024. Burn Trend ranks emerging companies on which way that figure has moved over three years, and Schrodinger, Inc. scores 88/100 among other emerging companies.
Schrodinger, Inc.'s cash, cash equivalents and investments came to $395.5M at the end of fiscal year 2025, against $362.1M of total liabilities. Balance Sheet ranks emerging companies on that comparison, and Schrodinger, Inc. scores 61/100 among other emerging companies.
Schrodinger, Inc. scores 1.28, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($1.4B) relative to total liabilities ($362.1M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Schrodinger, Inc. passes 4 of 7 computable financial strength tests (2 of the nine could not be computed from available data). 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
Schrodinger, Inc. reported a net loss of $103.3M while generating $13.9M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
Key Financial Metrics
Earnings & Revenue
Schrodinger, Inc. generated $58.9M in revenue in Q2 2026. This represents an increase of 7.5% from the same quarter a year earlier. Against the prior quarter it is up 0.5%.
Schrodinger, Inc.'s EBITDA was -$40.1M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 22.0% from the same quarter a year earlier. Against the prior quarter it is up 15.3%.
Schrodinger, Inc. reported $6.0M in net income in Q2 2026. This represents an increase of 113.8% from the same quarter a year earlier. Against the prior quarter it is up 110.0%.
Schrodinger, Inc. earned $0.08 per diluted share (EPS) in Q2 2026. This represents an increase of 113.6% from the same quarter a year earlier. Against the prior quarter it is up 109.9%.
Cash & Balance Sheet
Schrodinger, Inc. recorded an outflow of $34.4M in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents an increase of 34.4% from the same quarter a year earlier. Against the prior quarter it is down 98.6%.
Schrodinger, Inc. held $287.9M in cash as of Q2 2026; long-term debt is not reported for that period.
Not reported for Q2 2026.
Margins & Returns
Schrodinger, Inc.'s gross margin was 55.1% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 7.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 4.6 percentage points.
Schrodinger, Inc.'s operating margin was -70.5% in Q2 2026, reflecting core business profitability. This is up 26.1 percentage points from the same quarter a year earlier. Against the prior quarter it is up 12.7 percentage points.
Schrodinger, Inc.'s net profit margin was 10.2% in Q2 2026, showing the share of revenue converted to profit. This is up 89.0 percentage points from the same quarter a year earlier.
Schrodinger, Inc.'s ROE was 1.8% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 14.4 percentage points from the same quarter a year earlier. Against the prior quarter it is up 21.0 percentage points.
Capital Allocation
Schrodinger, Inc. invested $41.0M in research and development in Q2 2026. This represents a decrease of 5.0% from the same quarter a year earlier. Against the prior quarter it is down 6.4%.
Schrodinger, Inc. invested $362K in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 15.3% from the same quarter a year earlier. Against the prior quarter it is down 85.6%.
Not reported for Q2 2026.
SDGR 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 | $58.9M+7.5% | $58.6M-1.6% | $87.2M-1.2% | $54.3M+53.9% | $54.8M+15.7% | $59.6M+62.7% | $88.3M+19.1% | $35.3M-17.1% |
| Cost of Revenue | $26.5M-7.5% | $29.0M+2.2% | $29.9M+23.8% | $26.3M+49.7% | $28.6M+78.8% | $28.4M+60.5% | $24.2M+45.9% | $17.6M-7.2% |
| Gross Profit | $32.4M+24.0% | $29.5M-5.1% | $57.3M-10.7% | $28.0M+58.2% | $26.2M-16.5% | $31.1M+64.8% | $64.1M+11.4% | $17.7M-25.0% |
| R&D Expenses | $41.0M-5.0% | $43.8M-4.4% | $41.4M-16.1% | $42.8M-16.1% | $43.1M-15.1% | $45.8M-9.4% | $49.4M-4.1% | $51.0M+8.8% |
| SG&A Expenses | $22.7M-9.8% | $22.9M-11.2% | $22.7M-11.9% | $21.7M-12.6% | $25.2M+7.0% | $25.8M+1.0% | $25.8M+0.2% | $24.8M+3.9% |
| Operating Income | -$41.5M+21.5% | -$48.8M+4.1% | -$17.2M+17.2% | -$45.9M+32.8% | -$52.9M-0.3% | -$50.9M+24.5% | -$20.7M+30.1% | -$68.4M-21.8% |
| EBITDA | -$40.1M+22.0% | -$47.3M+4.0% | -$15.7M+17.0% | -$44.5M+33.5% | -$51.4M-0.1% | -$49.3M+25.3% | -$18.9M+33.0% | -$66.9M-21.7% |
| Income Tax | $1.4M+378.0% | $408K+1357.1% | $462K-52.0% | $162K+280.0% | $287K+245.8% | $28K-93.9% | $963K+214.4% | -$90K+96.9% |
| Net Income | $6.0M+113.8% | -$60.0M-0.4% | $32.5M+180.8% | -$32.8M+14.0% | -$43.2M+20.1% | -$59.8M-9.3% | -$40.2M-31.1% | -$38.1M+38.5% |
| EPS (Basic) | $0.08+113.6% | -$0.81+1.2% | $0.44+180.0% | -$0.45+13.5% | -$0.59+20.3% | -$0.82-7.9% | -$0.55-27.9% | -$0.52+39.5% |
| EPS (Diluted) | $0.08+113.6% | -$0.81+1.2% | $0.44+180.0% | -$0.45+13.5% | -$0.59+20.3% | -$0.82-7.9% | -$0.55-34.1% | -$0.52+39.5% |
| Diluted Shares (Avg) | 76M+3.2% | 74M+1.3% | N/A | 74M+1.1% | 73M+1.0% | 73M+1.1% | N/A | 73M+1.2% |
Not reported in any period shown, so not listed: Interest Expense.
SDGR 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 | $640.4M-7.0% | $634.2M-14.6% | $726.2M-11.8% | $653.7M-2.3% | $688.2M0.0% | $743.0M+0.7% | $823.2M+2.5% | $669.3M-15.7% |
| Current Assets | $470.5M-8.5% | $464.0M-18.7% | $519.3M-18.2% | $471.7M+3.4% | $514.0M+14.4% | $570.9M+15.6% | $635.0M+11.8% | $456.4M-16.7% |
| Cash & Equivalents | $287.9M+30.9% | $260.3M-20.2% | $230.5M+56.5% | $172.1M+7.3% | $219.9M+103.4% | $326.0M+150.3% | $147.3M-5.1% | $160.4M-35.7% |
| Short-Term Investments | $125.9M-45.3% | $138.7M-20.4% | $164.9M-19.5% | $219.1M-4.0% | $230.3M-14.4% | $174.3M-42.1% | $204.8M-33.4% | $228.3M-7.6% |
| Accounts Receivable | $21.4M+112.4% | $27.3M+33.9% | $83.0M-64.8% | $29.4M+121.2% | $10.1M-15.0% | $20.3M+2.6% | $235.7M+257.2% | $13.3M-33.2% |
| Long-Term Investments | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Goodwill | $4.8M0.0% | $4.8M0.0% | $4.8M0.0% | $4.8M0.0% | $4.8M0.0% | $4.8M0.0% | $4.8M0.0% | $4.8M0.0% |
| Total Liabilities | $311.4M-9.8% | $320.6M-13.2% | $362.1M-9.9% | $332.3M+51.1% | $345.4M+61.1% | $369.5M+64.9% | $401.8M+57.9% | $219.9M-4.6% |
| Current Liabilities | $173.8M+11.6% | $169.5M+2.5% | $189.1M-1.4% | $145.1M+30.6% | $155.8M+56.1% | $165.5M+55.4% | $191.7M+43.4% | $111.1M+5.8% |
| Non-Current Liabilities | $137.6M-27.4% | $151.1M-26.0% | $173.0M-17.6% | $187.2M+72.1% | $189.6M+65.4% | $204.1M+73.6% | $210.0M+74.0% | $108.8M-13.4% |
| Total Equity | $329.0M-4.1% | $313.5M-16.1% | $364.1M-13.6% | $321.4M-28.5% | $342.9M-27.7% | $373.5M-27.3% | $421.4M-23.2% | $449.4M-20.3% |
| Retained Earnings | -$682.9M-8.6% | -$688.8M-17.7% | -$628.8M-19.6% | -$661.3M-36.3% | -$628.5M-40.5% | -$585.3M-48.9% | -$525.5M-55.3% | -$485.3M-57.7% |
Not reported in any period shown, so not listed: Inventory, Long-Term Debt.
SDGR 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 | -$34.1M+34.7% | -$14.8M-110.3% | -$16.1M+48.3% | -$61.9M-86.1% | -$52.2M+2.8% | $144.1M+466.8% | -$31.1M+16.5% | -$33.3M+33.4% |
| Depreciation & Amortization | $1.5M-2.8% | $1.5M-7.1% | $1.4M-18.5% | $1.5M-6.0% | $1.5M+9.3% | $1.6M+10.7% | $1.8M+30.3% | $1.6M+22.4% |
| Stock-Based Compensation | $8.8M-17.2% | $9.1M-21.6% | N/A | $10.8M-12.5% | $10.6M-17.0% | $11.6M-5.3% | N/A | $12.4M-2.0% |
| Capital Expenditures | $362K+15.3% | $2.5M+320.6% | $41K-95.3% | $491K-63.4% | $314K-68.6% | $596K-85.4% | $873K-64.8% | $1.3M-72.7% |
| Free Cash Flow | -$34.4M+34.4% | -$17.3M-112.1% | -$16.1M+49.6% | -$62.4M-80.3% | -$52.5M+4.0% | $143.5M+430.8% | -$32.0M+19.5% | -$34.6M+36.9% |
| Investing Cash Flow | $58.6M+205.4% | $44.6M+45.6% | $71.4M+204.2% | $11.5M-87.4% | -$55.6M-288.0% | $30.6M+503.1% | $23.5M+139.4% | $90.7M+587.0% |
| Financing Cash Flow | $650K-67.8% | $569K+39.1% | $197K+65.5% | $307K-21.7% | $2.0M+25.6% | $409K-94.9% | $119K-94.9% | $392K-70.5% |
Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.
SDGR 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 | 55.1%+7.3pp | 50.4%-1.8pp | 65.7%-6.9pp | 51.6%+1.4pp | 47.8%-18.4pp | 52.3%+0.6pp | 72.6%-5.0pp | 50.2%-5.3pp |
| Operating Margin | -70.5%+26.1pp | -83.3%+2.2pp | -19.7%+3.8pp | -84.6% | -96.6% | -85.5% | -23.4%+16.5pp | -193.9% |
| Net Margin | 10.2%+89.0pp | -102.5% | 37.3%+82.8pp | -60.4% | -78.8% | -100.4% | -45.5%-4.2pp | -108.1% |
| Return on Equity | 1.8%+14.4pp | -19.1%-3.1pp | 8.9%+18.5pp | -10.2%-1.7pp | -12.6%-1.2pp | -16.0%-5.4pp | -9.5%-4.0pp | -8.5%+2.5pp |
| Return on Assets | 0.9%+7.2pp | -9.5%-1.4pp | 4.5%+9.4pp | -5.0%+0.7pp | -6.3%+1.6pp | -8.1%-0.6pp | -4.9%-1.1pp | -5.7%+2.1pp |
| Current Ratio | 2.71-0.6x | 2.74-0.7x | 2.75-0.6x | 3.25-0.9x | 3.30-1.2x | 3.45-1.2x | 3.31-0.9x | 4.11-1.1x |
| Debt-to-Equity | 0.95-0.1x | 1.020.0x | 0.990.0x | 1.03+0.5x | 1.01+0.6x | 0.99+0.6x | 0.95+0.5x | 0.49+0.1x |
| Asset Turnover | 0.090.0x | 0.090.0x | 0.120.0x | 0.080.0x | 0.080.0x | 0.080.0x | 0.110.0x | 0.050.0x |
| FCF Margin | -58.5%+37.4pp | -29.6% | -18.5%+17.7pp | -114.8% | -95.9% | 240.9% | -36.2%+17.4pp | -98.0% |
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 |
|---|---|---|---|---|---|---|
| Schrodinger, Inc. SDGR | FY2025 | $255.9M | -$103.3M | -40.4% | $1.4B | 60/100 |
| Teladoc Health Inc TDOC | FY2025 | $2.5B | -$200.3M | -7.9% | $1.1B | 41/100 |
| 10X Genomics, Inc. TXG | FY2025 | $642.8M | -$43.5M | -6.8% | $8.8B | 72/100 |
| Omnicell Com OMCL | FY2025 | $1.2B | $2.1M | 0.2% | $1.5B | 42/100 |
| Goodrx Holdings, Inc. GDRX | FY2025 | $796.9M | $30.4M | 3.8% | $1.1B | 56/100 |
| Phreesia PHR | FY2026 | $480.6M | $2.3M | 0.5% | $641.8M | 46/100 |
Where Schrodinger, Inc. Ranks
Frequently Asked Questions
What is Schrodinger, Inc.'s annual revenue?
Schrodinger, Inc. (SDGR) reported $255.9M in total revenue for fiscal year 2025. This represents a 23.3% 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 Schrodinger, Inc.'s revenue growing?
Schrodinger, Inc. (SDGR) revenue grew by 23.3% year-over-year, from $207.5M to $255.9M in fiscal year 2025.
Is Schrodinger, Inc. profitable?
No, Schrodinger, Inc. (SDGR) reported a net income of -$103.3M in fiscal year 2025, with a net profit margin of -40.4%.
What is Schrodinger, Inc.'s EBITDA?
Schrodinger, Inc. (SDGR) had EBITDA of -$160.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Schrodinger, Inc.'s gross margin?
Schrodinger, Inc. (SDGR) had a gross margin of 55.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Schrodinger, Inc.'s operating margin?
Schrodinger, Inc. (SDGR) had an operating margin of -65.2% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Schrodinger, Inc.'s net profit margin?
Schrodinger, Inc. (SDGR) had a net profit margin of -40.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Schrodinger, Inc.'s return on equity (ROE)?
Schrodinger, Inc. (SDGR) has a return on equity of -28.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Schrodinger, Inc.'s free cash flow?
Schrodinger, Inc. (SDGR) generated $12.5M in free cash flow during fiscal year 2025. This represents a 107.6% 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 Schrodinger, Inc.'s operating cash flow?
Schrodinger, Inc. (SDGR) generated $13.9M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Schrodinger, Inc.'s total assets?
Schrodinger, Inc. (SDGR) had $726.2M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Schrodinger, Inc.'s capital expenditures?
Schrodinger, Inc. (SDGR) invested $1.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Schrodinger, Inc. spend on research and development?
Schrodinger, Inc. (SDGR) invested $173.1M in research and development during fiscal year 2025.
What is Schrodinger, Inc.'s current ratio?
Schrodinger, Inc. (SDGR) had a current ratio of 2.75 as of fiscal year 2025, which is generally considered healthy.
What is Schrodinger, Inc.'s debt-to-equity ratio?
Schrodinger, Inc. (SDGR) had a debt-to-equity ratio of 0.99 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Schrodinger, Inc.'s return on assets (ROA)?
Schrodinger, Inc. (SDGR) had a return on assets of -14.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Schrodinger, Inc.'s P/E ratio?
Schrodinger, Inc. (SDGR) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $1.4B as of Sep 11, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Schrodinger, Inc.'s price-to-sales ratio?
Schrodinger, Inc. (SDGR) trades at 5.5x sales, its market capitalization divided by revenue of $259.0M revenue, trailing 12 months to June 30, 2026. The market capitalization is $1.4B as of Sep 11, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Schrodinger, Inc.'s Altman Z-Score?
Schrodinger, Inc. (SDGR) has an Altman Z-Score of 1.28, placing it in the Distress Zone (elevated 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 Schrodinger, Inc.'s Piotroski F-Score?
Schrodinger, Inc. (SDGR) has a Piotroski F-Score of 4 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.
Are Schrodinger, Inc.'s earnings high quality?
Schrodinger, Inc. (SDGR) reported a net loss of $103.3M while generating $13.9M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. 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 Schrodinger, Inc.?
Schrodinger, Inc. (SDGR) scores 60 out of 100 on our Financial Health Score, indicating moderate standing within its emerging companies peer group. The score is a 0-100 composite of six dimensions (Cash Runway, Dilution, R&D Intensity, Revenue Progress, Burn Trend, Balance Sheet), 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.