FEDERAL SIGNAL CORP (FSS)
US3138551086 - Common Stock
FSS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 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. With these ratings, FSS could be worth investigating further for quality investing!.
1. Profitability
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.
1.2 Ratios
FSS's Return On Assets of 9.71% is fine compared to the rest of the industry. FSS outperforms 77.52% of its industry peers.
The Return On Equity of FSS (15.71%) is better than 70.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.42%, FSS is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
FSS had an Average Return On Invested Capital over the past 3 years of 10.09%. This is in line with the industry average of 10.73%.
The last Return On Invested Capital (12.42%) for FSS is above the 3 year average (10.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 15.71% | ||
| ROIC | 12.42% |
ROA(3y)8.33%
ROA(5y)8.45%
ROE(3y)14.18%
ROE(5y)14.63%
ROIC(3y)10.09%
ROIC(5y)10.39%
1.3 Margins
FSS's Profit Margin of 9.14% is fine compared to the rest of the industry. FSS outperforms 68.99% of its industry peers.
In the last couple of years the Profit Margin of FSS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 13.06%, FSS is in the better half of the industry, outperforming 68.22% of the companies in the same industry.
In the last couple of years the Operating Margin of FSS has grown nicely.
With a Gross Margin value of 26.13%, FSS perfoms like the industry average, outperforming 44.19% of the companies in the same industry.
FSS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.06% | ||
| PM (TTM) | 9.14% | ||
| GM | 26.13% |
OM growth 3Y3.08%
OM growth 5Y2.95%
PM growth 3Y2.41%
PM growth 5Y1.15%
GM growth 3Y0.22%
GM growth 5Y0.19%
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.
The number of shares outstanding for FSS has been increased compared to 1 year ago.
The number of shares outstanding for FSS has been increased compared to 5 years ago.
FSS has a better debt/assets ratio than last year.
2.2 Solvency
FSS has an Altman-Z score of 7.55. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
FSS has a better Altman-Z score (7.55) than 89.15% of its industry peers.
FSS has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
FSS's Debt to FCF ratio of 1.82 is amongst the best of the industry. FSS outperforms 81.40% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that FSS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, FSS is in the better half of the industry, outperforming 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 7.55 |
ROIC/WACC1.34
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.91 indicates that FSS has no problem at all paying its short term obligations.
The Current ratio of FSS (2.91) is better than 72.09% of its industry peers.
A Quick Ratio of 1.36 indicates that FSS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, FSS is in line with its industry, outperforming 59.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.96% 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 12.53% yearly.
FSS shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.07%.
The Revenue has been growing by 9.60% on average over the past years. This is quite good.
EPS 1Y (TTM)30.96%
EPS 3Y15.6%
EPS 5Y12.53%
EPS growth Q2Q29.82%
Revenue 1Y (TTM)20.07%
Revenue growth 3Y15.06%
Revenue growth 5Y9.6%
Revenue growth Q2Q14.53%
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 14.40% yearly.
The Revenue is expected to grow by 7.80% on average over the next years.
EPS Next Y17.47%
EPS Next 2Y14.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.35%
Revenue Next 2Y8.21%
Revenue Next 3Y7.6%
Revenue Next 5Y7.8%
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.
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
With a Price/Earnings ratio of 32.30, FSS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FSS is valued a bit more expensive than the industry average as 65.12% of the companies are valued more cheaply.
FSS is valuated rather expensively when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.50, FSS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, FSS is valued a bit more expensive than 60.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.67. FSS is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 27.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FSS is valued a bit more expensive than 63.57% of the companies in the same industry.
FSS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.99 | ||
| EV/EBITDA | 18.75 |
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.
FSS has a very decent profitability rating, which may justify a higher PE ratio.
FSS's earnings are expected to grow with 14.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)2.58
EPS Next 2Y14.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, FSS is not a good candidate for dividend investing.
FSS's Dividend Yield is comparable with the industry average which is at 1.71.
Compared to an average S&P500 Dividend Yield of 2.45, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of FSS has a limited annual growth rate of 4.68%.
FSS has been paying a dividend for at least 10 years, so it has a reliable track record.
As FSS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.68%
Div Incr Years1
Div Non Decr Years9
5.3 Sustainability
15.12% of the earnings are spent on dividend by FSS. This is a low number and sustainable payout ratio.
FSS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP15.12%
EPS Next 2Y14.4%
EPS Next 3YN/A
FEDERAL SIGNAL CORP
NYSE:FSS (4/24/2024, 7:04:00 PM)
After market: 83.33 0 (0%)83.33
-0.43 (-0.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.3 | ||
| Fwd PE | 27.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.85
PEG (5Y)2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.71% | ||
| ROE | 15.71% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.06% | ||
| PM (TTM) | 9.14% | ||
| GM | 26.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.96%
EPS 3Y15.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y17.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.07%
Revenue growth 3Y15.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y