FEDERAL SIGNAL CORP (FSS) Fundamental Analysis & Valuation

NYSE:FSS • US3138551086

110.89 USD
+2.41 (+2.22%)
At close: Mar 11, 2026
110.89 USD
0 (0%)
After Hours: 3/11/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This FSS fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Taking everything into account, FSS scores 6 out of 10 in our fundamental rating. FSS was compared to 131 industry peers in the Machinery industry. FSS scores excellent on profitability, but there are some minor concerns on its financial health. FSS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

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.
  • FSS had positive earnings in each of the past 5 years.
  • 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 2025 100M 200M 300M

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.
  • FSS's Return On Equity of 17.84% is amongst the best of the industry. FSS outperforms 83.21% of its industry peers.
  • FSS has a Return On Invested Capital of 13.36%. This is amongst the best in the industry. FSS outperforms 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 10.16%.
Industry RankSector 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%
FSS Yearly ROA, ROE, ROICFSS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • FSS's Profit Margin of 11.31% is fine compared to the rest of the industry. FSS outperforms 77.86% of its industry peers.
  • In the last couple of years the Profit Margin of FSS has grown nicely.
  • FSS has a Operating Margin of 16.37%. This is in the better half of the industry: FSS outperforms 77.86% of its industry peers.
  • FSS's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 28.95%, FSS perfoms like the industry average, outperforming 45.80% of the companies in the same industry.
  • FSS's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
FSS Yearly Profit, Operating, Gross MarginsFSS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. FSS Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FSS is creating some value.
  • Compared to 1 year ago, FSS has less shares outstanding
  • The number of shares outstanding for FSS has been increased compared to 5 years ago.
  • FSS has a worse debt/assets ratio than last year.
FSS Yearly Shares OutstandingFSS Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 500M 1B 1.5B 2B

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.
  • The Debt to FCF ratio of FSS is 2.49, which is a good value as it means it would take FSS, 2.49 years of fcf income to pay off all of its debts.
  • FSS has a better Debt to FCF ratio (2.49) than 73.28% of its industry peers.
  • FSS has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.41, FSS perfoms like the industry average, outperforming 57.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 2.49
Altman-Z 6.38
ROIC/WACC1.45
WACC9.22%
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 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 3.02 indicates that FSS has no problem at all paying its short term obligations.
  • FSS's Current ratio of 3.02 is fine compared to the rest of the industry. FSS outperforms 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.
  • FSS's Quick ratio of 1.35 is in line compared to the rest of the industry. FSS outperforms 54.96% of its industry peers.
Industry RankSector Rank
Current Ratio 3.02
Quick Ratio 1.35
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 2025 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. FSS Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 26.65% over the past year.
  • The Earnings Per Share has been growing by 20.43% on average over the past years. This is a very strong growth
  • The Revenue has grown by 17.14% in the past year. This is quite good.
  • The Revenue has been growing by 14.03% on average over the past years. This is quite good.
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.
  • The Revenue is expected to grow by 6.31% on average over the next years.
EPS Next Y12.09%
EPS Next 2Y13.15%
EPS Next 3Y14.82%
EPS Next 5YN/A
Revenue Next Year22.47%
Revenue Next 2Y14.67%
Revenue Next 3Y13.58%
Revenue Next 5Y6.31%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 decreasing.
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 1B 2B 3B
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 2 4 6

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3

4. FSS Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.22 indicates a quite expensive valuation of 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 26.15.
  • The Price/Forward Earnings ratio is 23.39, which indicates a rather expensive current 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.
  • When comparing the Price/Forward Earnings ratio of FSS to the average of the S&P500 Index (24.27), we can say FSS is valued inline with the index average.
Industry RankSector Rank
PE 26.22
Fwd PE 23.39
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

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as FSS.
  • FSS's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 29.73
EV/EBITDA 16.25
FSS Per share dataFSS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FSS does not grow enough to justify the current Price/Earnings ratio.
  • 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 14.82% in the coming years.
PEG (NY)2.17
PEG (5Y)1.28
EPS Next 2Y13.15%
EPS Next 3Y14.82%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. FSS Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.53%, FSS is not a good candidate for dividend investing.
  • FSS's Dividend Yield is comparable with the industry average which is at 1.13.
  • With a Dividend Yield of 0.53, FSS pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.53%

5.2 History

  • On average, the dividend of FSS grows each year by 11.75%, which is quite nice.
  • FSS has paid a dividend for at least 10 years, which is 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
FSS Yearly Dividends per shareFSS Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

  • FSS pays out 13.83% of its income as dividend. This is a sustainable payout ratio.
  • FSS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.83%
EPS Next 2Y13.15%
EPS Next 3Y14.82%
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 2025 50M 100M 150M 200M
FSS Dividend Payout.FSS Dividend Payout, showing the Payout Ratio.FSS Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

FSS Fundamentals: All Metrics, Ratios and Statistics

FEDERAL SIGNAL CORP

NYSE:FSS (3/11/2026, 8:04:00 PM)

After market: 110.89 0 (0%)

110.89

+2.41 (+2.22%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-25
Earnings (Next)04-28
Inst Owners101.85%
Inst Owner Change-1.87%
Ins Owners1.72%
Ins Owner Change0.86%
Market Cap6.75B
Revenue(TTM)2.18B
Net Income(TTM)246.60M
Analysts78
Price Target134.23 (21.05%)
Short Float %5.64%
Short Ratio8.26
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly Dividend0.56
Dividend Growth(5Y)11.75%
DP13.83%
Div Incr Years2
Div Non Decr Years10
Ex-Date03-13
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)-0.83%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)1.6%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)4.37%
Revenue NQ rev (3m)4.55%
Revenue NY rev (1m)5.62%
Revenue NY rev (3m)7.56%
Valuation
Industry RankSector Rank
PE 26.22
Fwd PE 23.39
P/S 3.1
P/FCF 29.73
P/OCF 26.51
P/B 4.89
P/tB 17.8
EV/EBITDA 16.25
EPS(TTM)4.23
EY3.81%
EPS(NY)4.74
Fwd EY4.28%
FCF(TTM)3.73
FCFY3.36%
OCF(TTM)4.18
OCFY3.77%
SpS35.81
BVpS22.7
TBVpS6.23
PEG (NY)2.17
PEG (5Y)1.28
Graham Number46.48
Profitability
Industry RankSector 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 RankSector 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
WACC9.22%
ROIC/WACC1.45
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 Year22.47%
Revenue Next 2Y14.67%
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 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 26.22 and the Price/Book (PB) ratio is 4.89.


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%.