FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
NYSE:FSS - New York Stock Exchange, Inc. - US3138551086 - Common Stock - Currency: USD
Overall FSS gets a fundamental rating of 6 out of 10. We evaluated FSS against 127 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. These ratings would make FSS suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year FSS was profitable.
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 has a Return On Assets of 11.24%. This is amongst the best in the industry. FSS outperforms 83.46% of its industry peers.
FSS's Return On Equity of 17.56% is fine compared to the rest of the industry. FSS outperforms 75.59% of its industry peers.
FSS has a Return On Invested Capital of 14.69%. This is amongst the best in the industry. FSS outperforms 85.04% 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 10.78%.
The 3 year average ROIC (12.32%) for FSS is below the current ROIC(14.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 17.56% | ||
| ROIC | 14.69% |
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
The Profit Margin of FSS (11.11%) is better than 76.38% of its industry peers.
FSS's Profit Margin has improved in the last couple of years.
The Operating Margin of FSS (15.52%) is better than 73.23% of its industry peers.
FSS's Operating Margin has improved in the last couple of years.
The Gross Margin of FSS (28.83%) 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 | 15.52% | ||
| PM (TTM) | 11.11% | ||
| GM | 28.83% |
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.
Compared to 1 year ago, FSS has about the same amount of shares outstanding.
Compared to 5 years ago, FSS has more shares outstanding
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.
The Altman-Z score of FSS (8.46) is better than 90.55% of its industry peers.
The Debt to FCF ratio of FSS is 1.39, which is an excellent value as it means it would take FSS, only 1.39 years of fcf income to pay off all of its debts.
FSS has a better Debt to FCF ratio (1.39) than 80.31% of its industry peers.
FSS has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.22, FSS is doing good in the industry, outperforming 68.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.39 | ||
| Altman-Z | 8.46 |
ROIC/WACC1.49
WACC9.88%
2.3 Liquidity
FSS has a Current Ratio of 2.39. This indicates that FSS is financially healthy and has no problem in meeting its short term obligations.
FSS has a Current ratio of 2.39. This is in the better half of the industry: FSS outperforms 60.63% of its industry peers.
FSS has a Quick Ratio of 1.09. 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 (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.36% 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.
Looking at the last year, FSS shows a small growth in Revenue. The Revenue has grown by 7.85% in the last year.
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)25.36%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%18.75%
Revenue 1Y (TTM)7.85%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%9.16%
3.2 Future
The Earnings Per Share is expected to grow by 14.03% on average over the next years. This is quite good.
FSS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.43% yearly.
EPS Next Y15.51%
EPS Next 2Y14.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.79%
Revenue Next 2Y8.43%
Revenue Next 3Y7.04%
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.
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
A Price/Earnings ratio of 30.84 indicates a quite expensive valuation of FSS.
Compared to the rest of the industry, the Price/Earnings ratio of FSS indicates a slightly more expensive valuation: FSS is more expensive than 62.99% of the companies listed in the same industry.
FSS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.51.
Based on the Price/Forward Earnings ratio of 24.57, the valuation of FSS can be described as rather expensive.
FSS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FSS to the average of the S&P500 Index (35.58), we can say FSS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 24.57 |
4.2 Price Multiples
61.42% 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 ratio is a bit more expensive when compared to the industry. FSS is more expensive than 61.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.66 | ||
| EV/EBITDA | 18.68 |
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 14.03% in the coming years.
PEG (NY)1.99
PEG (5Y)2.34
EPS Next 2Y14.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, FSS is not a good candidate for dividend investing.
FSS's Dividend Yield is comparable with the industry average which is at 1.82.
Compared to an average S&P500 Dividend Yield of 2.35, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.46%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
14.49% of the earnings are spent on dividend by FSS. This is a low number and sustainable payout ratio.
The dividend of FSS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.49%
EPS Next 2Y14.03%
EPS Next 3YN/A
NYSE:FSS (7/15/2025, 10:55:33 AM)
106.705
-1.22 (-1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.59%
Inst Owner Change-0.03%
Ins Owners1.73%
Ins Owner Change5.48%
Market Cap6.51B
Analysts80
Price Target105.57 (-1.06%)
Short Float %8.04%
Short Ratio9.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.48
Dividend Growth(5Y)8.46%
DP14.49%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.84%
Min EPS beat(2)-1.15%
Max EPS beat(2)2.84%
EPS beat(4)3
Avg EPS beat(4)4.36%
Min EPS beat(4)-1.15%
Max EPS beat(4)11.51%
EPS beat(8)7
Avg EPS beat(8)6.81%
EPS beat(12)10
Avg EPS beat(12)6.55%
EPS beat(16)14
Avg EPS beat(16)7.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.88%
Min Revenue beat(2)-3.02%
Max Revenue beat(2)-0.74%
Revenue beat(4)0
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)-0.13%
Revenue beat(8)3
Avg Revenue beat(8)-0.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)7
Avg Revenue beat(16)0.29%
PT rev (1m)0%
PT rev (3m)0.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 24.57 | ||
| P/S | 3.42 | ||
| P/FCF | 32.66 | ||
| P/OCF | 27.45 | ||
| P/B | 5.41 | ||
| P/tB | 14.07 | ||
| EV/EBITDA | 18.68 |
EPS(TTM)3.46
EY3.24%
EPS(NY)4.34
Fwd EY4.07%
FCF(TTM)3.27
FCFY3.06%
OCF(TTM)3.89
OCFY3.64%
SpS31.17
BVpS19.72
TBVpS7.58
PEG (NY)1.99
PEG (5Y)2.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.24% | ||
| ROE | 17.56% | ||
| ROCE | 18.43% | ||
| ROIC | 14.69% | ||
| ROICexc | 15.24% | ||
| ROICexgc | 29.28% | ||
| OM | 15.52% | ||
| PM (TTM) | 11.11% | ||
| GM | 28.83% | ||
| FCFM | 10.48% |
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%
ROICexcg growth 3Y14.81%
ROICexcg 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-Score7
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.39 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 54.78% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.11% | ||
| Profit Quality | 94.32% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 8.46 |
F-Score7
WACC9.88%
ROIC/WACC1.49
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)25.36%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%18.75%
EPS Next Y15.51%
EPS Next 2Y14.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.85%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%9.16%
Revenue Next Year9.79%
Revenue Next 2Y8.43%
Revenue Next 3Y7.04%
Revenue Next 5Y7.43%
EBIT growth 1Y23.12%
EBIT growth 3Y30.22%
EBIT growth 5Y13.68%
EBIT Next Year40.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y327.47%
FCF growth 3Y43.6%
FCF growth 5Y23.01%
OCF growth 1Y229.62%
OCF growth 3Y31.46%
OCF growth 5Y17.54%