EQL Pharma AB (OSTO:EQL) Financial Strength: 4 (As of Jun. 2026) — Near Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

OSTO:EQL EQL Pharma AB OSTO:EQL
38 GF Score
Price kr25.75
! 6 Warning Signs
View Full Analysis

What is EQL Pharma AB Financial Strength?

EQL Pharma AB OSTO:EQL -2.83% 38 Financial Strength is 4 as of Jun. 2026, which is at its 10-year median of 4.00. GuruFocus rates OSTO:EQL with a GF Score™ of 38/100. The stock has 6 warning signs investors should review.

EQL Pharma AB has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

EQL Pharma AB did not have earnings to cover the interest expense. EQL Pharma AB's debt to revenue ratio for the quarter that ended in Jun. 2026 was 1.13. As of today, EQL Pharma AB's Altman Z-Score is 1.63.


EQL Pharma AB  (OSTO:EQL) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

EQL Pharma AB has the Financial Strength Rank of 4.


EQL Pharma AB Financial Strength Related Terms


OSTO:EQL vs ZTS: Financial Strength Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, EQL Pharma AB's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


EQL Pharma AB Financial Strength vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, EQL Pharma AB's Financial Strength distribution charts can be found below:

* The bar in red indicates where EQL Pharma AB's Financial Strength falls into.


OSTO:EQL
38GF Score
EQL Pharma AB OSTO:EQL
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

EQL Pharma AB Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

EQL Pharma AB's Interest Expense for the months ended in Jun. 2026 was kr-7.5 Mil. Its Operating Income for the months ended in Jun. 2026 was kr-13.6 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was kr345.6 Mil.

EQL Pharma AB's Interest Coverage for the quarter that ended in Jun. 2026 is

EQL Pharma AB did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

EQL Pharma AB's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(138.749 + 345.616) / 427.632
=1.13

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

EQL Pharma AB has a Z-score of 1.63, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.63 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 4 mean?
EQL Pharma AB (OSTO:EQL) has a Financial Strength of 4 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on EQL Pharma AB and its competitors. This is near median its historical median of 4.00. Over the past decade, EQL Pharma AB's Financial Strength has ranged from 4.00 to 6.00.
Is EQL Pharma AB's Financial Strength too high?
EQL Pharma AB's current Financial Strength of 4 is near median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 6.00. Overall, EQL Pharma AB has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does EQL Pharma AB's Financial Strength compare to ZTS?
EQL Pharma AB's Financial Strength of 4 can be compared against companies in the Drug Manufacturers industry. Historically, EQL Pharma AB's own Financial Strength has ranged from 4.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Drug Manufacturers company?
A good Financial Strength depends on the Drug Manufacturers industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on EQL Pharma AB and its competitors. EQL Pharma AB's current Financial Strength is 4, which is near median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EQL Pharma AB stock overvalued right now?
EQL Pharma AB (OSTO:EQL) has a current Financial Strength of 4. The current Financial Strength is 4, which is near median its 10-year median of 4.00. EQL Pharma AB's overall GF Score™ is 38/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For EQL Pharma AB (OSTO:EQL), the current Financial Strength is 4 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

EQL Pharma AB Business Description

Other Exchanges 7JK:Germany
Address Stortorget 1, 3rd Floor, Lund, SWE, 222 23
EQL Pharma AB is a pharmaceutical company focused on efficiently and thoughtfully developing and marketing generic drugs. The company operates in one segment, which is medicine. Its niche generics are divided into four parts based on four sales and marketing models: Retail, Hospital, Branded, and Tests. EQL Pharma specializes in identifying, developing, and selling generics, i.e., medicines that are medically equivalent to originator medicines. The company operates in Sweden, Denmark, Norway, Finland, the rest of Europe, and outside Europe, generating the majority of its revenue from Sweden.
38GF Score

Get the complete analysis for OSTO:EQL

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

kr25.75
Price