FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
128.8 USD
+2.9 (+2.3%)
Taking everything into account, FSS scores 7 out of 10 in our fundamental rating. FSS was compared to 130 industry peers in the Machinery industry. FSS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, FSS is valued expensive at the moment. With these ratings, FSS could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year FSS was profitable.
FSS had a positive operating cash flow in the past year.
FSS had positive earnings in each of the past 5 years.
FSS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.57%, FSS belongs to the top of the industry, outperforming 86.92% of the companies in the same industry.
With an excellent Return On Equity value of 17.56%, FSS belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
FSS has a Return On Invested Capital of 15.02%. This is amongst the best in the industry. FSS outperforms 88.46% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSS is above the industry average of 10.00%.
The last Return On Invested Capital (15.02%) for FSS is above the 3 year average (12.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 17.56% | ||
| ROIC | 15.02% |
ROA(3y)9.96%
ROA(5y)9.04%
ROE(3y)15.98%
ROE(5y)14.89%
ROIC(3y)12.32%
ROIC(5y)11.14%
1.3 Margins
FSS's Profit Margin of 11.22% is amongst the best of the industry. FSS outperforms 81.54% of its industry peers.
In the last couple of years the Profit Margin of FSS has grown nicely.
With a decent Operating Margin value of 15.77%, FSS is doing good in the industry, outperforming 74.62% of the companies in the same industry.
FSS's Operating Margin has improved in the last couple of years.
The Gross Margin of FSS (29.04%) is comparable to the rest of the industry.
FSS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.77% | ||
| PM (TTM) | 11.22% | ||
| GM | 29.04% |
OM growth 3Y12.91%
OM growth 5Y4.49%
PM growth 3Y11.9%
PM growth 5Y5.52%
GM growth 3Y6.36%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
FSS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FSS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FSS has been increased compared to 5 years ago.
The debt/assets ratio for FSS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.73 indicates that FSS is not in any danger for bankruptcy at the moment.
The Altman-Z score of FSS (9.73) is better than 91.54% of its industry peers.
FSS has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.19, FSS belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that FSS is not too dependend on debt financing.
The Debt to Equity ratio of FSS (0.20) is better than 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 9.73 |
ROIC/WACC1.59
WACC9.46%
2.3 Liquidity
A Current Ratio of 2.60 indicates that FSS has no problem at all paying its short term obligations.
FSS has a Current ratio of 2.60. This is in the better half of the industry: FSS outperforms 69.23% of its industry peers.
FSS has a Quick Ratio of 1.25. This is a normal value and indicates that FSS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.25, FSS is in line with its industry, outperforming 47.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.05% over the past year.
FSS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.16% yearly.
The Revenue has grown by 9.09% in the past year. This is quite good.
FSS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.79% yearly.
EPS 1Y (TTM)21.05%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%23.16%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%15.13%
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 14.68% yearly.
The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y21.61%
EPS Next 2Y17.24%
EPS Next 3Y16.51%
EPS Next 5Y14.68%
Revenue Next Year12.75%
Revenue Next 2Y12.64%
Revenue Next 3Y13.01%
Revenue Next 5Y7.43%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.00, FSS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of FSS indicates a slightly more expensive valuation: FSS is more expensive than 63.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, FSS is valued a bit more expensive.
A Price/Forward Earnings ratio of 28.05 indicates a quite expensive valuation of FSS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FSS indicates a slightly more expensive valuation: FSS is more expensive than 61.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. FSS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35 | ||
| Fwd PE | 28.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSS indicates a slightly more expensive valuation: FSS is more expensive than 61.54% of the companies listed in the same industry.
FSS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.61 | ||
| EV/EBITDA | 20.45 |
4.3 Compensation for Growth
FSS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FSS may justify a higher PE ratio.
A more expensive valuation may be justified as FSS's earnings are expected to grow with 16.51% in the coming years.
PEG (NY)1.62
PEG (5Y)2.66
EPS Next 2Y17.24%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.45%, which is pretty low.
FSS's Dividend Yield is comparable with the industry average which is at 1.78.
With a Dividend Yield of 0.45, FSS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
On average, the dividend of FSS grows each year by 8.46%, which is quite nice.
FSS has been paying a dividend for at least 10 years, so it has a reliable track record.
FSS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.46%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
FSS pays out 14.17% of its income as dividend. This is a sustainable payout ratio.
The dividend of FSS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.17%
EPS Next 2Y17.24%
EPS Next 3Y16.51%
NYSE:FSS (10/29/2025, 9:56:54 AM)
128.8
+2.9 (+2.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change-1.11%
Ins Owners1.73%
Ins Owner Change0.31%
Market Cap7.83B
Revenue(TTM)1.97B
Net Income(TTM)221.60M
Analysts76
Price Target134.23 (4.22%)
Short Float %6.06%
Short Ratio8.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.48
Dividend Growth(5Y)8.46%
DP14.17%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.14%
Min EPS beat(2)2.84%
Max EPS beat(2)9.43%
EPS beat(4)3
Avg EPS beat(4)3.84%
Min EPS beat(4)-1.15%
Max EPS beat(4)9.43%
EPS beat(8)7
Avg EPS beat(8)7.2%
EPS beat(12)10
Avg EPS beat(12)6.34%
EPS beat(16)14
Avg EPS beat(16)7.52%
Revenue beat(2)1
Avg Revenue beat(2)1.66%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)4.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)4.05%
Revenue beat(8)3
Avg Revenue beat(8)0.14%
Revenue beat(12)6
Avg Revenue beat(12)0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.05%
PT rev (1m)0.92%
PT rev (3m)21.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)0%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35 | ||
| Fwd PE | 28.05 | ||
| P/S | 3.97 | ||
| P/FCF | 34.61 | ||
| P/OCF | 30.62 | ||
| P/B | 6.2 | ||
| P/tB | 15 | ||
| EV/EBITDA | 20.45 |
EPS(TTM)3.68
EY2.86%
EPS(NY)4.59
Fwd EY3.56%
FCF(TTM)3.72
FCFY2.89%
OCF(TTM)4.21
OCFY3.27%
SpS32.48
BVpS20.76
TBVpS8.59
PEG (NY)1.62
PEG (5Y)2.66
Graham Number41.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 17.56% | ||
| ROCE | 18.84% | ||
| ROIC | 15.02% | ||
| ROICexc | 15.64% | ||
| ROICexgc | 29.28% | ||
| OM | 15.77% | ||
| PM (TTM) | 11.22% | ||
| GM | 29.04% | ||
| FCFM | 11.46% |
ROA(3y)9.96%
ROA(5y)9.04%
ROE(3y)15.98%
ROE(5y)14.89%
ROIC(3y)12.32%
ROIC(5y)11.14%
ROICexc(3y)12.94%
ROICexc(5y)11.74%
ROICexgc(3y)25.46%
ROICexgc(5y)24.23%
ROCE(3y)15.45%
ROCE(5y)13.96%
ROICexgc growth 3Y14.81%
ROICexgc growth 5Y1.2%
ROICexc growth 3Y21.22%
ROICexc growth 5Y5.23%
OM growth 3Y12.91%
OM growth 5Y4.49%
PM growth 3Y11.9%
PM growth 5Y5.52%
GM growth 3Y6.36%
GM growth 5Y1.61%
F-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 40.47% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.54% | ||
| Profit Quality | 102.08% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 9.73 |
F-Score6
WACC9.46%
ROIC/WACC1.59
Cap/Depr(3y)69.74%
Cap/Depr(5y)69.95%
Cap/Sales(3y)2.54%
Cap/Sales(5y)2.67%
Profit Quality(3y)69.35%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)21.05%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%23.16%
EPS Next Y21.61%
EPS Next 2Y17.24%
EPS Next 3Y16.51%
EPS Next 5Y14.68%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%15.13%
Revenue Next Year12.75%
Revenue Next 2Y12.64%
Revenue Next 3Y13.01%
Revenue Next 5Y7.43%
EBIT growth 1Y19.13%
EBIT growth 3Y30.22%
EBIT growth 5Y13.68%
EBIT Next Year46.24%
EBIT Next 3Y21.21%
EBIT Next 5Y19.64%
FCF growth 1Y246.93%
FCF growth 3Y43.6%
FCF growth 5Y23.01%
OCF growth 1Y176.73%
OCF growth 3Y31.46%
OCF growth 5Y17.54%
FEDERAL SIGNAL CORP / FSS FAQ
What is the fundamental rating for FSS stock?
ChartMill assigns a fundamental rating of 7 / 10 to FSS.
What is the valuation status for FSS stock?
ChartMill assigns a valuation rating of 2 / 10 to FEDERAL SIGNAL CORP (FSS). This can be considered as Overvalued.
What is the profitability of FSS stock?
FEDERAL SIGNAL CORP (FSS) has a profitability rating of 9 / 10.
Can you provide the financial health for FSS stock?
The financial health rating of FEDERAL SIGNAL CORP (FSS) is 7 / 10.
Is the dividend of FEDERAL SIGNAL CORP sustainable?
The dividend rating of FEDERAL SIGNAL CORP (FSS) is 6 / 10 and the dividend payout ratio is 14.17%.