FEDERAL SIGNAL CORP (FSS) Fundamental Analysis & Valuation
NYSE:FSS • US3138551086
Current stock price
106.47 USD
-2.08 (-1.92%)
At close:
106.47 USD
0 (0%)
After Hours:
This FSS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. FSS Profitability Analysis
1.1 Basic Checks
- In the past year FSS was profitable.
- FSS had a positive operating cash flow in the past year.
- In the past 5 years FSS has always been profitable.
- FSS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FSS's Return On Assets of 10.31% is amongst the best of the industry. FSS outperforms 83.21% of its industry peers.
- The Return On Equity of FSS (17.84%) is better than 83.21% of its industry peers.
- FSS has a better Return On Invested Capital (13.36%) than 83.97% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FSS is above the industry average of 10.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 17.84% | ||
| ROIC | 13.36% |
ROA(3y)10.76%
ROA(5y)9.51%
ROE(3y)17.26%
ROE(5y)15.72%
ROIC(3y)13.52%
ROIC(5y)11.69%
1.3 Margins
- FSS has a Profit Margin of 11.31%. This is in the better half of the industry: FSS outperforms 77.10% of its industry peers.
- In the last couple of years the Profit Margin of FSS has grown nicely.
- FSS has a better Operating Margin (16.37%) than 77.10% of its industry peers.
- In the last couple of years the Operating Margin of FSS has grown nicely.
- Looking at the Gross Margin, with a value of 28.95%, FSS is in line with its industry, outperforming 45.80% of the companies in the same industry.
- In the last couple of years the Gross Margin of FSS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.37% | ||
| PM (TTM) | 11.31% | ||
| GM | 28.95% |
OM growth 3Y13.58%
OM growth 5Y6.55%
PM growth 3Y10.46%
PM growth 5Y5.86%
GM growth 3Y6.39%
GM growth 5Y2.2%
2. FSS Health Analysis
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 less shares outstanding than it did 1 year ago.
- FSS has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FSS has a worse debt to assets ratio.
2.2 Solvency
- FSS has an Altman-Z score of 6.38. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
- FSS has a better Altman-Z score (6.38) than 83.21% of its industry peers.
- FSS has a debt to FCF ratio of 2.49. This is a good value and a sign of high solvency as FSS would need 2.49 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.49, FSS is doing good in the industry, outperforming 74.05% of the companies in the same industry.
- FSS has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
- FSS's Debt to Equity ratio of 0.41 is in line compared to the rest of the industry. FSS outperforms 57.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 6.38 |
ROIC/WACC1.33
WACC10.08%
2.3 Liquidity
- FSS has a Current Ratio of 3.02. This indicates that FSS is financially healthy and has no problem in meeting its short term obligations.
- FSS has a better Current ratio (3.02) than 77.86% of its industry peers.
- FSS has a Quick Ratio of 1.35. This is a normal value and indicates that FSS is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.35, FSS perfoms like the industry average, outperforming 55.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.35 |
3. FSS Growth Analysis
3.1 Past
- FSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.65%, which is quite impressive.
- The Earnings Per Share has been growing by 20.43% on average over the past years. This is a very strong growth
- Looking at the last year, FSS shows a quite strong growth in Revenue. The Revenue has grown by 17.14% in the last year.
- Measured over the past years, FSS shows a quite strong growth in Revenue. The Revenue has been growing by 14.03% on average per year.
EPS 1Y (TTM)26.65%
EPS 3Y29.01%
EPS 5Y20.43%
EPS Q2Q%33.33%
Revenue 1Y (TTM)17.14%
Revenue growth 3Y14.97%
Revenue growth 5Y14.03%
Sales Q2Q%26.5%
3.2 Future
- The Earnings Per Share is expected to grow by 14.82% on average over the next years. This is quite good.
- Based on estimates for the next years, FSS will show a small growth in Revenue. The Revenue will grow by 6.31% on average per year.
EPS Next Y12.09%
EPS Next 2Y13.15%
EPS Next 3Y14.82%
EPS Next 5YN/A
Revenue Next Year22.84%
Revenue Next 2Y14.53%
Revenue Next 3Y13.58%
Revenue Next 5Y6.31%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. FSS Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.17, which means the current valuation is very expensive for FSS.
- The rest of the industry has a similar Price/Earnings ratio as FSS.
- FSS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.88.
- A Price/Forward Earnings ratio of 22.46 indicates a rather expensive valuation of FSS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FSS is on the same level as its industry peers.
- FSS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 22.46 |
4.2 Price Multiples
- FSS's Enterprise Value to EBITDA is on the same level as the industry average.
- FSS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.55 | ||
| EV/EBITDA | 16.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- FSS has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as FSS's earnings are expected to grow with 14.82% in the coming years.
PEG (NY)2.08
PEG (5Y)1.23
EPS Next 2Y13.15%
EPS Next 3Y14.82%
5. FSS Dividend Analysis
5.1 Amount
- FSS has a yearly dividend return of 0.55%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.21, FSS has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.89, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
- The dividend of FSS is nicely growing with an annual growth rate of 11.75%!
- 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)11.75%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
- FSS pays out 13.83% 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.
DP13.83%
EPS Next 2Y13.15%
EPS Next 3Y14.82%
FSS Fundamentals: All Metrics, Ratios and Statistics
106.47
-2.08 (-1.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-25 2026-02-25/bmo
Earnings (Next)04-28 2026-04-28
Inst Owners101.85%
Inst Owner Change-1.83%
Ins Owners1.72%
Ins Owner Change0.96%
Market Cap6.48B
Revenue(TTM)2.18B
Net Income(TTM)246.60M
Analysts78
Price Target138.72 (30.29%)
Short Float %5.35%
Short Ratio7.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.56
Dividend Growth(5Y)11.75%
DP13.83%
Div Incr Years2
Div Non Decr Years10
Ex-Date03-13 2026-03-13 (0.15)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.21%
Min EPS beat(2)4.98%
Max EPS beat(2)7.44%
EPS beat(4)4
Avg EPS beat(4)6.17%
Min EPS beat(4)2.84%
Max EPS beat(4)9.43%
EPS beat(8)7
Avg EPS beat(8)6.43%
EPS beat(12)11
Avg EPS beat(12)7.48%
EPS beat(16)14
Avg EPS beat(16)7.82%
Revenue beat(2)2
Avg Revenue beat(2)4.58%
Min Revenue beat(2)0.79%
Max Revenue beat(2)8.37%
Revenue beat(4)3
Avg Revenue beat(4)3.12%
Min Revenue beat(4)-0.74%
Max Revenue beat(4)8.37%
Revenue beat(8)3
Avg Revenue beat(8)0.7%
Revenue beat(12)7
Avg Revenue beat(12)1.34%
Revenue beat(16)9
Avg Revenue beat(16)1.17%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-0.67%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)1.6%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)4.15%
Revenue NQ rev (3m)4.33%
Revenue NY rev (1m)5.94%
Revenue NY rev (3m)7.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.17 | ||
| Fwd PE | 22.46 | ||
| P/S | 2.97 | ||
| P/FCF | 28.55 | ||
| P/OCF | 25.45 | ||
| P/B | 4.69 | ||
| P/tB | 17.09 | ||
| EV/EBITDA | 16.26 |
EPS(TTM)4.23
EY3.97%
EPS(NY)4.74
Fwd EY4.45%
FCF(TTM)3.73
FCFY3.5%
OCF(TTM)4.18
OCFY3.93%
SpS35.81
BVpS22.7
TBVpS6.23
PEG (NY)2.08
PEG (5Y)1.23
Graham Number46.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 17.84% | ||
| ROCE | 16.91% | ||
| ROIC | 13.36% | ||
| ROICexc | 13.77% | ||
| ROICexgc | 27% | ||
| OM | 16.37% | ||
| PM (TTM) | 11.31% | ||
| GM | 28.95% | ||
| FCFM | 10.42% |
ROA(3y)10.76%
ROA(5y)9.51%
ROE(3y)17.26%
ROE(5y)15.72%
ROIC(3y)13.52%
ROIC(5y)11.69%
ROICexc(3y)14.15%
ROICexc(5y)12.2%
ROICexgc(3y)27.57%
ROICexgc(5y)24.46%
ROCE(3y)17.11%
ROCE(5y)14.81%
ROICexgc growth 3Y10.63%
ROICexgc growth 5Y1.8%
ROICexc growth 3Y12.14%
ROICexc growth 5Y4.83%
OM growth 3Y13.58%
OM growth 5Y6.55%
PM growth 3Y10.46%
PM growth 5Y5.86%
GM growth 3Y6.39%
GM growth 5Y2.2%
F-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 2.49 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 34.29% | ||
| Cap/Sales | 1.27% | ||
| Interest Coverage | 24.96 | ||
| Cash Conversion | 58.23% | ||
| Profit Quality | 92.09% | ||
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 6.38 |
F-Score6
WACC10.08%
ROIC/WACC1.33
Cap/Depr(3y)48.88%
Cap/Depr(5y)63.54%
Cap/Sales(3y)1.74%
Cap/Sales(5y)2.4%
Profit Quality(3y)94.84%
Profit Quality(5y)72.83%
High Growth Momentum
Growth
EPS 1Y (TTM)26.65%
EPS 3Y29.01%
EPS 5Y20.43%
EPS Q2Q%33.33%
EPS Next Y12.09%
EPS Next 2Y13.15%
EPS Next 3Y14.82%
EPS Next 5YN/A
Revenue 1Y (TTM)17.14%
Revenue growth 3Y14.97%
Revenue growth 5Y14.03%
Sales Q2Q%26.5%
Revenue Next Year22.84%
Revenue Next 2Y14.53%
Revenue Next 3Y13.58%
Revenue Next 5Y6.31%
EBIT growth 1Y25.85%
EBIT growth 3Y30.58%
EBIT growth 5Y21.5%
EBIT Next Year43.6%
EBIT Next 3Y22.58%
EBIT Next 5YN/A
FCF growth 1Y19.09%
FCF growth 3Y129.45%
FCF growth 5Y16.35%
OCF growth 1Y10.12%
OCF growth 3Y52.51%
OCF growth 5Y13.34%
FEDERAL SIGNAL CORP / FSS Fundamental Analysis FAQ
What is the fundamental rating for FSS stock?
ChartMill assigns a fundamental rating of 6 / 10 to FSS.
Can you provide the valuation status for FEDERAL SIGNAL CORP?
ChartMill assigns a valuation rating of 3 / 10 to FEDERAL SIGNAL CORP (FSS). This can be considered as Overvalued.
Can you provide the profitability details for FEDERAL SIGNAL CORP?
FEDERAL SIGNAL CORP (FSS) has a profitability rating of 8 / 10.
What are the PE and PB ratios of FEDERAL SIGNAL CORP (FSS) stock?
The Price/Earnings (PE) ratio for FEDERAL SIGNAL CORP (FSS) is 25.17 and the Price/Book (PB) ratio is 4.69.
How sustainable is the dividend of FEDERAL SIGNAL CORP (FSS) stock?
The dividend rating of FEDERAL SIGNAL CORP (FSS) is 6 / 10 and the dividend payout ratio is 13.83%.