FEDERAL SIGNAL CORP (FSS)

US3138551086 - Common Stock

80.8  -1.11 (-1.36%)

After market: 80.8 0 (0%)

Fundamental Rating

6

Overall FSS gets a fundamental rating of 6 out of 10. We evaluated FSS against 133 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. While showing a medium growth rate, FSS is valued expensive at the moment. With these ratings, FSS could be worth investigating further for quality investing!.



7

1. Profitability

1.1 Basic Checks

FSS had positive earnings in the past year.
FSS had a positive operating cash flow in the past year.
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

The Return On Assets of FSS (9.71%) is better than 78.63% of its industry peers.
Looking at the Return On Equity, with a value of 15.71%, FSS is in the better half of the industry, outperforming 74.05% of the companies in the same industry.
FSS's Return On Invested Capital of 12.42% is fine compared to the rest of the industry. FSS outperforms 77.86% of its industry peers.
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 10.60%.
The 3 year average ROIC (10.09%) for FSS is below the current ROIC(12.42%), indicating increased profibility in the last year.
Industry RankSector 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

The Profit Margin of FSS (9.14%) is better than 70.23% of its industry peers.
FSS's Profit Margin has been stable in the last couple of years.
FSS has a better Operating Margin (13.06%) than 68.70% of its industry peers.
FSS's Operating Margin has improved in the last couple of years.
FSS has a Gross Margin (26.13%) which is in line with its industry peers.
FSS's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

7

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 more shares outstanding than it did 1 year ago.
FSS has more shares outstanding than it did 5 years ago.
FSS has a better debt/assets ratio than last year.

2.2 Solvency

FSS has an Altman-Z score of 7.36. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
FSS's Altman-Z score of 7.36 is amongst the best of the industry. FSS outperforms 87.79% of its industry peers.
The Debt to FCF ratio of FSS is 1.82, which is an excellent value as it means it would take FSS, only 1.82 years of fcf income to pay off all of its debts.
FSS has a Debt to FCF ratio of 1.82. This is amongst the best in the industry. FSS outperforms 82.44% of its industry peers.
FSS has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, FSS is in the better half of the industry, outperforming 63.36% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.82
Altman-Z 7.36
ROIC/WACC1.42
WACC8.77%

2.3 Liquidity

FSS has a Current Ratio of 2.91. This indicates that FSS is financially healthy and has no problem in meeting its short term obligations.
FSS has a Current ratio of 2.91. This is in the better half of the industry: FSS outperforms 73.28% of its industry peers.
A Quick Ratio of 1.36 indicates that FSS should not have too much problems paying its short term obligations.
FSS has a Quick ratio (1.36) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 2.91
Quick Ratio 1.36

6

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.
Looking at the last year, FSS shows a very strong growth in Revenue. The Revenue has grown by 20.07%.
FSS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.60% yearly.
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 12.10% yearly.
Based on estimates for the next years, FSS will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y14.05%
EPS Next 2Y12.1%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.38%
Revenue Next 2Y6.75%
Revenue Next 3Y7.6%
Revenue Next 5Y7.8%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 31.32 indicates a quite expensive valuation of FSS.
FSS's Price/Earnings ratio is a bit more expensive when compared to the industry. FSS is more expensive than 62.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.86, FSS is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.46, FSS can be considered very expensive at the moment.
FSS's Price/Forward Earnings ratio is in line with the industry average.
FSS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.87, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 31.32
Fwd PE 27.46

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 30
EV/EBITDA 18.09

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 decent profitability rating of FSS may justify a higher PE ratio.
FSS's earnings are expected to grow with 12.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.23
PEG (5Y)2.5
EPS Next 2Y12.1%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.59%, FSS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.68, FSS has a dividend in line with its industry peers.
With a Dividend Yield of 0.59, FSS pays less dividend than the S&P500 average, which is at 2.44.
Industry RankSector 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 2Y12.1%
EPS Next 3YN/A

FEDERAL SIGNAL CORP

NYSE:FSS (3/1/2024, 7:16:12 PM)

After market: 80.8 0 (0%)

80.8

-1.11 (-1.36%)

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 Cap4.92B
Analysts
Price Target
Dividend
Industry RankSector 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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 31.32
Fwd PE 27.46
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)2.23
PEG (5Y)2.5
Profitability
Industry RankSector 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 RankSector 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 Y14.05%
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