Exploring FEDERAL SIGNAL CORP (NYSE:FSS)s quality characteristics.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if FEDERAL SIGNAL CORP (NYSE:FSS) is suited for quality investing. Investors should of course do their own research, but we spotted FEDERAL SIGNAL CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Key Considerations for Quality Investors.

• FSS has achieved substantial revenue growth over the past 5 years, with a 8.79% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• FSS exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 30.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• The Debt/Free Cash Flow Ratio of FSS stands at 1.17, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• FSS demonstrates consistent Profit Quality over the past 5 years, with a strong 76.55%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 13.68%, FSS showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• FSS has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of FSS

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

FSS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. FSS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FSS is valied quite expensively at the moment, while it does show a decent growth rate. This makes FSS very considerable for quality investing!

Our latest full fundamental report of FSS contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.