FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
NYSE:FSS - US3138551086 - Common Stock
126.71 USD
-1.61 (-1.25%)
Overall FSS gets a fundamental rating of 6 out of 10. We evaluated FSS against 127 industry peers in the Machinery industry. FSS gets an excellent profitability rating and is at the same time showing great financial health properties. 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
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 has a better Return On Assets (11.57%) than 85.04% of its industry peers.
FSS has a better Return On Equity (17.56%) than 79.53% of its industry peers.
The Return On Invested Capital of FSS (15.02%) is better than 87.40% 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 10.47%.
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 fine compared to the rest of the industry. FSS outperforms 79.53% of its industry peers.
FSS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 15.77%, FSS is doing good in the industry, outperforming 74.02% of the companies in the same industry.
FSS's Operating Margin has improved in the last couple of years.
FSS has a Gross Margin (29.04%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FSS has grown nicely.
| 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.
Compared to 1 year ago, FSS has an improved debt to assets ratio.
2.2 Solvency
FSS has an Altman-Z score of 9.87. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
FSS has a Altman-Z score of 9.87. This is amongst the best in the industry. FSS outperforms 91.34% 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.
FSS's Debt to FCF ratio of 1.19 is amongst the best of the industry. FSS outperforms 82.68% of its industry peers.
FSS has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, FSS is in the better half of the industry, outperforming 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 9.87 |
ROIC/WACC1.52
WACC9.88%
2.3 Liquidity
FSS has a Current Ratio of 2.60. This indicates that FSS is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.60, FSS is doing good in the industry, outperforming 70.87% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that FSS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.25, FSS perfoms like the industry average, outperforming 51.18% 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.
Measured over the past years, FSS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.16% on average per year.
FSS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.09%.
Measured over the past years, FSS shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
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
Based on estimates for the next years, FSS will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.84% on average per year.
The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y21.52%
EPS Next 2Y16.67%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue Next Year12.75%
Revenue Next 2Y10.1%
Revenue Next 3Y9.64%
Revenue Next 5Y7.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
The Price/Earnings ratio is 34.43, which means the current valuation is very expensive for FSS.
Based on the Price/Earnings ratio, FSS is valued a bit more expensive than 65.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. FSS is valued slightly more expensive when compared to this.
FSS is valuated quite expensively with a Price/Forward Earnings ratio of 27.87.
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 64.57% of the companies listed 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 22.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.43 | ||
| Fwd PE | 27.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FSS is valued a bit more expensive than the industry average as 64.57% of the companies are valued more cheaply.
FSS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. FSS is more expensive than 62.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.05 | ||
| EV/EBITDA | 20.83 |
4.3 Compensation for Growth
The 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 15.84% in the coming years.
PEG (NY)1.6
PEG (5Y)2.62
EPS Next 2Y16.67%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, FSS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, FSS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, FSS's dividend is way lower than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is 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
14.17% 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.
DP14.17%
EPS Next 2Y16.67%
EPS Next 3Y15.84%
NYSE:FSS (8/25/2025, 3:22:06 PM)
126.71
-1.61 (-1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.76%
Inst Owner Change-0.62%
Ins Owners1.73%
Ins Owner Change5.48%
Market Cap7.70B
Analysts76
Price Target133.01 (4.97%)
Short Float %4.84%
Short Ratio4.17
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)20.07%
PT rev (3m)27.59%
EPS NQ rev (1m)4.01%
EPS NQ rev (3m)8.6%
EPS NY rev (1m)5.2%
EPS NY rev (3m)5.17%
Revenue NQ rev (1m)3.01%
Revenue NQ rev (3m)7.35%
Revenue NY rev (1m)2.7%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.43 | ||
| Fwd PE | 27.87 | ||
| P/S | 3.9 | ||
| P/FCF | 34.05 | ||
| P/OCF | 30.12 | ||
| P/B | 6.1 | ||
| P/tB | 14.75 | ||
| EV/EBITDA | 20.83 |
EPS(TTM)3.68
EY2.9%
EPS(NY)4.55
Fwd EY3.59%
FCF(TTM)3.72
FCFY2.94%
OCF(TTM)4.21
OCFY3.32%
SpS32.48
BVpS20.76
TBVpS8.59
PEG (NY)1.6
PEG (5Y)2.62
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%
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-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 | 9.87 |
F-Score6
WACC9.88%
ROIC/WACC1.52
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 Y21.52%
EPS Next 2Y16.67%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue 1Y (TTM)9.09%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%15.13%
Revenue Next Year12.75%
Revenue Next 2Y10.1%
Revenue Next 3Y9.64%
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 5YN/A
FCF growth 1Y246.93%
FCF growth 3Y43.6%
FCF growth 5Y23.01%
OCF growth 1Y176.73%
OCF growth 3Y31.46%
OCF growth 5Y17.54%