FEDERAL SIGNAL CORP (FSS)
US3138551086 - Common Stock
We assign a fundamental rating of 6 out of 10 to FSS. FSS was compared to 131 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 valued quite expensive, but it does show an excellent growth. These ratings would make FSS suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
FSS had positive earnings in the past year.
In the past year FSS had a positive cash flow from operations.
Each year in the past 5 years FSS has been profitable.
Each year in the past 5 years FSS had a positive operating cash flow.
1.2 Ratios
FSS's Return On Assets of 11.00% is amongst the best of the industry. FSS outperforms 82.95% of its industry peers.
FSS has a Return On Equity of 17.39%. This is in the better half of the industry: FSS outperforms 73.64% of its industry peers.
The Return On Invested Capital of FSS (13.10%) is better than 78.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FSS is in line with the industry average of 10.91%.
The last Return On Invested Capital (13.10%) for FSS is above the 3 year average (10.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11% | ||
| ROE | 17.39% | ||
| ROIC | 13.1% |
ROA(3y)8.33%
ROA(5y)8.45%
ROE(3y)14.18%
ROE(5y)14.63%
ROIC(3y)10.09%
ROIC(5y)10.39%
1.3 Margins
FSS has a Profit Margin of 10.31%. This is in the better half of the industry: FSS outperforms 75.97% of its industry peers.
FSS's Profit Margin has been stable in the last couple of years.
FSS's Operating Margin of 13.61% is fine compared to the rest of the industry. FSS outperforms 70.54% of its industry peers.
In the last couple of years the Operating Margin of FSS has grown nicely.
FSS's Gross Margin of 26.70% is in line compared to the rest of the industry. FSS outperforms 43.41% of its industry peers.
In the last couple of years the Gross Margin of FSS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.61% | ||
| PM (TTM) | 10.31% | ||
| GM | 26.7% |
OM growth 3Y3.08%
OM growth 5Y2.95%
PM growth 3Y2.41%
PM growth 5Y1.15%
GM growth 3Y0.22%
GM growth 5Y0.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FSS is still creating some value.
FSS has more shares outstanding than it did 1 year ago.
The number of shares outstanding for FSS has been increased compared to 5 years ago.
Compared to 1 year ago, FSS has an improved debt to assets ratio.
2.2 Solvency
FSS has an Altman-Z score of 8.46. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.46, FSS belongs to the top of the industry, outperforming 92.25% of the companies in the same industry.
The Debt to FCF ratio of FSS is 1.46, which is an excellent value as it means it would take FSS, only 1.46 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.46, FSS belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.
FSS has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
FSS's Debt to Equity ratio of 0.26 is fine compared to the rest of the industry. FSS outperforms 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 8.46 |
ROIC/WACC1.5
WACC8.73%
2.3 Liquidity
A Current Ratio of 2.82 indicates that FSS has no problem at all paying its short term obligations.
The Current ratio of FSS (2.82) is better than 70.54% of its industry peers.
FSS has a Quick Ratio of 1.29. This is a normal value and indicates that FSS is financially healthy and should not expect problems in meeting its short term obligations.
FSS has a Quick ratio (1.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.32% over the past year.
The Earnings Per Share has been growing by 12.53% on average over the past years. This is quite good.
The Revenue has grown by 20.07% in the past year. This is a very strong growth!
FSS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.60% yearly.
EPS 1Y (TTM)36.32%
EPS 3Y15.6%
EPS 5Y12.53%
EPS Q2Q%41.79%
Revenue 1Y (TTM)20.07%
Revenue growth 3Y15.06%
Revenue growth 5Y9.6%
Sales Q2Q%10.85%
3.2 Future
FSS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.03% yearly.
Based on estimates for the next years, FSS will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y20.62%
EPS Next 2Y16.16%
EPS Next 3Y18.03%
EPS Next 5YN/A
Revenue Next Year9.88%
Revenue Next 2Y8.29%
Revenue Next 3Y8.45%
Revenue Next 5Y7.8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
FSS is valuated quite expensively with a Price/Earnings ratio of 31.70.
Based on the Price/Earnings ratio, FSS is valued a bit more expensive than 62.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.29. FSS is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.69, FSS can be considered very expensive at the moment.
FSS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FSS is more expensive than 62.79% of the companies in the same industry.
FSS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.7 | ||
| Fwd PE | 27.69 |
4.2 Price Multiples
64.34% of the companies in the same industry are cheaper than FSS, based on the Enterprise Value to EBITDA ratio.
FSS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.68 | ||
| EV/EBITDA | 20.28 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FSS has a very decent profitability rating, which may justify a higher PE ratio.
FSS's earnings are expected to grow with 18.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)2.53
EPS Next 2Y16.16%
EPS Next 3Y18.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, FSS is not a good candidate for dividend investing.
FSS's Dividend Yield is comparable with the industry average which is at 1.66.
With a Dividend Yield of 0.51, FSS pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of FSS has a limited annual growth rate of 4.68%.
FSS has paid a dividend for at least 10 years, which is a reliable track record.
FSS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)4.68%
Div Incr Years1
Div Non Decr Years9
5.3 Sustainability
FSS pays out 14.10% of its income as dividend. This is a sustainable payout ratio.
FSS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.1%
EPS Next 2Y16.16%
EPS Next 3Y18.03%
FEDERAL SIGNAL CORP
NYSE:FSS (7/25/2024, 7:04:00 PM)
After market: 96.38 0 (0%)96.38
+1.85 (+1.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.7 | ||
| Fwd PE | 27.69 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.54
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11% | ||
| ROE | 17.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.61% | ||
| PM (TTM) | 10.31% | ||
| GM | 26.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)36.32%
EPS 3Y15.6%
EPS 5Y
EPS Q2Q%
EPS Next Y20.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.07%
Revenue growth 3Y15.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y