FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:FSS • US3138551086

116.78 USD
+0.03 (+0.03%)
Last: Feb 10, 2026, 09:50 AM
Fundamental Rating

7

Taking everything into account, FSS scores 7 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively. This makes FSS very considerable for quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

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.
  • In the past 5 years FSS always reported a positive cash flow from operatings.
FSS Yearly Net Income VS EBIT VS OCF VS FCFFSS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

1.2 Ratios

  • The Return On Assets of FSS (12.16%) is better than 88.55% of its industry peers.
  • FSS has a better Return On Equity (17.84%) than 83.97% of its industry peers.
  • FSS has a Return On Invested Capital of 15.81%. This is amongst the best in the industry. FSS outperforms 91.60% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for FSS is above the industry average of 10.30%.
  • The 3 year average ROIC (12.32%) for FSS is below the current ROIC(15.81%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 12.16%
ROE 17.84%
ROIC 15.81%
ROA(3y)9.96%
ROA(5y)9.04%
ROE(3y)15.98%
ROE(5y)14.89%
ROIC(3y)12.32%
ROIC(5y)11.14%
FSS Yearly ROA, ROE, ROICFSS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

  • With a decent Profit Margin value of 11.47%, FSS is doing good in the industry, outperforming 78.63% of the companies in the same industry.
  • In the last couple of years the Profit Margin of FSS has grown nicely.
  • FSS has a better Operating Margin (16.08%) than 75.57% of its industry peers.
  • In the last couple of years the Operating Margin of FSS has grown nicely.
  • FSS has a Gross Margin (28.92%) which is comparable to the rest of the industry.
  • FSS's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 16.08%
PM (TTM) 11.47%
GM 28.92%
OM growth 3Y12.91%
OM growth 5Y4.49%
PM growth 3Y11.9%
PM growth 5Y5.52%
GM growth 3Y6.36%
GM growth 5Y1.61%
FSS Yearly Profit, Operating, Gross MarginsFSS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

7

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.
  • The number of shares outstanding for FSS remains at a similar level compared to 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.
FSS Yearly Shares OutstandingFSS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
FSS Yearly Total Debt VS Total AssetsFSS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

  • FSS has an Altman-Z score of 9.71. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
  • FSS has a Altman-Z score of 9.71. This is amongst the best in the industry. FSS outperforms 91.60% of its industry peers.
  • The Debt to FCF ratio of FSS is 0.97, which is an excellent value as it means it would take FSS, only 0.97 years of fcf income to pay off all of its debts.
  • With an excellent Debt to FCF ratio value of 0.97, FSS belongs to the best of the industry, outperforming 89.31% of the companies in the same industry.
  • A Debt/Equity ratio of 0.15 indicates that FSS is not too dependend on debt financing.
  • FSS has a better Debt to Equity ratio (0.15) than 73.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 0.97
Altman-Z 9.71
ROIC/WACC1.65
WACC9.58%
FSS Yearly LT Debt VS Equity VS FCFFSS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

  • FSS has a Current Ratio of 2.61. This indicates that FSS is financially healthy and has no problem in meeting its short term obligations.
  • FSS has a better Current ratio (2.61) than 71.76% 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.
  • FSS has a Quick ratio of 1.25. This is comparable to the rest of the industry: FSS outperforms 51.15% of its industry peers.
Industry RankSector Rank
Current Ratio 2.61
Quick Ratio 1.25
FSS Yearly Current Assets VS Current LiabilitesFSS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

6

3. Growth

3.1 Past

  • FSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.74%, which is quite impressive.
  • 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.
  • Looking at the last year, FSS shows a quite strong growth in Revenue. The Revenue has grown by 11.83% in the last year.
  • The Revenue has been growing by 8.79% on average over the past years. This is quite good.
EPS 1Y (TTM)22.74%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%29.55%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%17.04%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.68% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y25.12%
EPS Next 2Y18.2%
EPS Next 3Y15.84%
EPS Next 5Y14.68%
Revenue Next Year13.76%
Revenue Next 2Y14.85%
Revenue Next 3Y12.97%
Revenue Next 5Y7.43%

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 stable.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
FSS Yearly Revenue VS EstimatesFSS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B 2.5B
FSS Yearly EPS VS EstimatesFSS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4 5

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 29.64, which means the current valuation is very expensive for FSS.
  • The rest of the industry has a similar Price/Earnings ratio as FSS.
  • The average S&P500 Price/Earnings ratio is at 28.06. FSS is around the same levels.
  • The Price/Forward Earnings ratio is 25.02, which means the current valuation is very expensive for 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.64
Fwd PE 25.02
FSS Price Earnings VS Forward Price EarningsFSS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • FSS's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as FSS.
Industry RankSector Rank
P/FCF 32.32
EV/EBITDA 17.83
FSS Per share dataFSS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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 an outstanding profitability rating, which may justify a higher PE ratio.
  • FSS's earnings are expected to grow with 15.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)2.25
EPS Next 2Y18.2%
EPS Next 3Y15.84%

6

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 1.15.
  • Compared to an average S&P500 Dividend Yield of 1.80, FSS's dividend is way lower than the S&P500 average.
Industry RankSector 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
FSS Yearly Dividends per shareFSS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • FSS pays out 13.95% 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.
DP13.95%
EPS Next 2Y18.2%
EPS Next 3Y15.84%
FSS Yearly Income VS Free CF VS DividendFSS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
FSS Dividend Payout.FSS Dividend Payout, showing the Payout Ratio.FSS Dividend Payout.PayoutRetained Earnings

FEDERAL SIGNAL CORP

NYSE:FSS (2/10/2026, 9:50:35 AM)

116.78

+0.03 (+0.03%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-30
Earnings (Next)02-25
Inst Owners103.4%
Inst Owner Change-1.58%
Ins Owners1.72%
Ins Owner Change-3.02%
Market Cap7.10B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (14.94%)
Short Float %5.58%
Short Ratio7.07
Dividend
Industry RankSector Rank
Dividend Yield 0.5%
Yearly Dividend0.48
Dividend Growth(5Y)8.46%
DP13.95%
Div Incr Years2
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.21%
Min EPS beat(2)4.98%
Max EPS beat(2)9.43%
EPS beat(4)3
Avg EPS beat(4)4.03%
Min EPS beat(4)-1.15%
Max EPS beat(4)9.43%
EPS beat(8)7
Avg EPS beat(8)6.95%
EPS beat(12)11
Avg EPS beat(12)6.86%
EPS beat(16)14
Avg EPS beat(16)7.62%
Revenue beat(2)2
Avg Revenue beat(2)2.42%
Min Revenue beat(2)0.79%
Max Revenue beat(2)4.05%
Revenue beat(4)2
Avg Revenue beat(4)0.27%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)4.05%
Revenue beat(8)3
Avg Revenue beat(8)0.11%
Revenue beat(12)7
Avg Revenue beat(12)0.82%
Revenue beat(16)8
Avg Revenue beat(16)0.58%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)0.81%
EPS NY rev (1m)0.1%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.42%
Valuation
Industry RankSector Rank
PE 29.64
Fwd PE 25.02
P/S 3.45
P/FCF 32.32
P/OCF 28.62
P/B 5.37
P/tB 12.19
EV/EBITDA 17.83
EPS(TTM)3.94
EY3.37%
EPS(NY)4.67
Fwd EY4%
FCF(TTM)3.61
FCFY3.09%
OCF(TTM)4.08
OCFY3.49%
SpS33.8
BVpS21.73
TBVpS9.58
PEG (NY)1.18
PEG (5Y)2.25
Graham Number43.9
Profitability
Industry RankSector Rank
ROA 12.16%
ROE 17.84%
ROCE 19.82%
ROIC 15.81%
ROICexc 16.34%
ROICexgc 30.17%
OM 16.08%
PM (TTM) 11.47%
GM 28.92%
FCFM 10.69%
ROA(3y)9.96%
ROA(5y)9.04%
ROE(3y)15.98%
ROE(5y)14.89%
ROIC(3y)12.32%
ROIC(5y)11.14%
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-Score7
Asset Turnover1.06
Health
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 0.97
Debt/EBITDA 0.49
Cap/Depr 37.12%
Cap/Sales 1.38%
Interest Coverage 250
Cash Conversion 60.96%
Profit Quality 93.17%
Current Ratio 2.61
Quick Ratio 1.25
Altman-Z 9.71
F-Score7
WACC9.58%
ROIC/WACC1.65
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)22.74%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%29.55%
EPS Next Y25.12%
EPS Next 2Y18.2%
EPS Next 3Y15.84%
EPS Next 5Y14.68%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%17.04%
Revenue Next Year13.76%
Revenue Next 2Y14.85%
Revenue Next 3Y12.97%
Revenue Next 5Y7.43%
EBIT growth 1Y20.31%
EBIT growth 3Y30.22%
EBIT growth 5Y13.68%
EBIT Next Year48.86%
EBIT Next 3Y24.55%
EBIT Next 5Y19.57%
FCF growth 1Y116.24%
FCF growth 3Y43.6%
FCF growth 5Y23.01%
OCF growth 1Y90.26%
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.


Can you provide the valuation status for FEDERAL SIGNAL CORP?

ChartMill assigns a valuation rating of 4 / 10 to FEDERAL SIGNAL CORP (FSS). This can be considered as Fairly Valued.


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 29.64 and the Price/Book (PB) ratio is 5.37.


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 13.95%.