FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
119.71 USD
+0.59 (+0.5%)
119.71 USD
0 (0%)
FSS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. FSS gets an excellent profitability rating and is at the same time showing great financial health properties. FSS is valied quite expensively at the moment, while it does show a decent growth rate. 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.
In the past 5 years FSS always reported a positive cash flow from operatings.
1.2 Ratios
FSS has a Return On Assets of 11.57%. This is amongst the best in the industry. FSS outperforms 86.82% of its industry peers.
With an excellent Return On Equity value of 17.56%, FSS belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
FSS's Return On Invested Capital of 15.02% is amongst the best of the industry. FSS outperforms 88.37% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSS is above the industry average of 10.01%.
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 has a Profit Margin of 11.22%. This is amongst the best in the industry. FSS outperforms 81.40% 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 74.42% of the companies in the same industry.
In the last couple of years the Operating Margin of FSS has grown nicely.
Looking at the Gross Margin, with a value of 29.04%, FSS is in line with its industry, outperforming 44.96% 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 | 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
An Altman-Z score of 9.36 indicates that FSS is not in any danger for bankruptcy at the moment.
FSS has a better Altman-Z score (9.36) than 90.70% of its industry peers.
The Debt to FCF ratio of FSS is 1.19, which is an excellent value as it means it would take FSS, only 1.19 years of fcf income to pay off 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 86.82% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that FSS is not too dependend on debt financing.
FSS has a Debt to Equity ratio of 0.20. This is in the better half of the industry: FSS outperforms 72.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 9.36 |
ROIC/WACC1.58
WACC9.48%
2.3 Liquidity
A Current Ratio of 2.60 indicates that FSS has no problem at all paying its short term obligations.
FSS's Current ratio of 2.60 is fine compared to the rest of the industry. FSS outperforms 68.99% of its industry peers.
A Quick Ratio of 1.25 indicates that FSS should not have too much problems paying its short term obligations.
The Quick ratio of FSS (1.25) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
FSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.05%, which is quite impressive.
The Earnings Per Share has been growing by 13.16% on average over the past years. This is quite good.
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.
FSS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.43% yearly.
EPS Next Y21.61%
EPS Next 2Y17.23%
EPS Next 3Y15.35%
EPS Next 5Y14.68%
Revenue Next Year12.75%
Revenue Next 2Y12.64%
Revenue Next 3Y13.01%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.53, which means the current valuation is very expensive for FSS.
62.02% of the companies in the same industry are cheaper than FSS, based on the Price/Earnings ratio.
FSS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 26.08, FSS can be considered very expensive at the moment.
FSS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FSS is more expensive than 60.47% of the companies in the same industry.
FSS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.53 | ||
| Fwd PE | 26.08 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FSS.
The rest of the industry has a similar Price/Free Cash Flow ratio as FSS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.17 | ||
| EV/EBITDA | 19.37 |
4.3 Compensation for Growth
FSS's 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 15.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.51
PEG (5Y)2.47
EPS Next 2Y17.23%
EPS Next 3Y15.35%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 1.81, FSS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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 2Y17.23%
EPS Next 3Y15.35%
119.71
+0.59 (+0.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change0.34%
Ins Owners1.73%
Ins Owner Change0.9%
Market Cap7.28B
Analysts76
Price Target134.23 (12.13%)
Short Float %4.83%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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)27.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)0.07%
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 | 32.53 | ||
| Fwd PE | 26.08 | ||
| P/S | 3.69 | ||
| P/FCF | 32.17 | ||
| P/OCF | 28.46 | ||
| P/B | 5.77 | ||
| P/tB | 13.94 | ||
| EV/EBITDA | 19.37 |
EPS(TTM)3.68
EY3.07%
EPS(NY)4.59
Fwd EY3.83%
FCF(TTM)3.72
FCFY3.11%
OCF(TTM)4.21
OCFY3.51%
SpS32.48
BVpS20.76
TBVpS8.59
PEG (NY)1.51
PEG (5Y)2.47
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 | 9.36 |
F-Score6
WACC9.48%
ROIC/WACC1.58
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 2Y17.23%
EPS Next 3Y15.35%
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%