FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
107.06 USD
-2.68 (-2.44%)
107.06 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to FSS. FSS was compared to 130 industry peers in the Machinery industry. FSS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FSS is not valued too expensively and it also shows a decent growth rate. With these ratings, FSS could be worth investigating further for quality investing!.
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.
FSS had positive earnings in each of the past 5 years.
FSS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.16%, FSS belongs to the top of the industry, outperforming 88.46% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.84%, FSS belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
The Return On Invested Capital of FSS (15.81%) is better than 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSS is above the industry average of 10.25%.
The last Return On Invested Capital (15.81%) for FSS is above the 3 year average (12.32%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
FSS's Profit Margin of 11.47% is amongst the best of the industry. FSS outperforms 81.54% of its industry peers.
FSS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 16.08%, FSS is doing good in the industry, outperforming 76.15% of the companies in the same industry.
In the last couple of years the Operating Margin of FSS has grown nicely.
FSS's Gross Margin of 28.92% is in line compared to the rest of the industry. FSS outperforms 46.15% of its industry peers.
In the last couple of years the Gross Margin of FSS has grown nicely.
| Industry Rank | Sector 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%
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.
Compared to 5 years ago, FSS has more shares outstanding
FSS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.30 indicates that FSS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.30, FSS belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
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.
FSS has a Debt to FCF ratio of 0.97. This is amongst the best in the industry. FSS outperforms 89.23% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that FSS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, FSS is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 9.3 |
ROIC/WACC1.65
WACC9.6%
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 69.23% of its industry peers.
A Quick Ratio of 1.25 indicates that FSS should not have too much problems paying its short term obligations.
FSS's Quick ratio of 1.25 is in line compared to the rest of the industry. FSS outperforms 51.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.74% 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 13.16% yearly.
Looking at the last year, FSS shows a quite strong growth in Revenue. The Revenue has grown by 11.83% in the last year.
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)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
Based on estimates for the next years, FSS will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.68% on average per year.
Based on estimates for the next years, FSS will show a small growth in Revenue. The Revenue will grow by 7.43% on average per year.
EPS Next Y23.59%
EPS Next 2Y17.65%
EPS Next 3Y16.55%
EPS Next 5Y14.68%
Revenue Next Year13.28%
Revenue Next 2Y12.69%
Revenue Next 3Y12.96%
Revenue Next 5Y7.43%
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.
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
Based on the Price/Earnings ratio of 27.17, the valuation of FSS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as FSS.
FSS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
FSS is valuated rather expensively with a Price/Forward Earnings ratio of 23.16.
FSS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, FSS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 23.16 |
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 | 29.62 | ||
| EV/EBITDA | 16.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FSS may justify a higher PE ratio.
FSS's earnings are expected to grow with 16.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)2.06
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, FSS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of FSS is nicely growing with an annual growth rate of 8.46%!
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
5.3 Sustainability
FSS pays out 13.95% 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.
DP13.95%
EPS Next 2Y17.65%
EPS Next 3Y16.55%
107.06
-2.68 (-2.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change0.82%
Ins Owners1.73%
Ins Owner Change-3.97%
Market Cap6.51B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (25.38%)
Short Float %6.06%
Short Ratio8.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend0.48
Dividend Growth(5Y)8.46%
DP13.95%
Div Incr Years2
Div Non Decr Years10
Ex-Date
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)0.92%
EPS NQ rev (1m)4.26%
EPS NQ rev (3m)4.26%
EPS NY rev (1m)1.63%
EPS NY rev (3m)6.99%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 23.16 | ||
| P/S | 3.17 | ||
| P/FCF | 29.62 | ||
| P/OCF | 26.23 | ||
| P/B | 4.92 | ||
| P/tB | 11.17 | ||
| EV/EBITDA | 16.78 |
EPS(TTM)3.94
EY3.68%
EPS(NY)4.62
Fwd EY4.32%
FCF(TTM)3.61
FCFY3.38%
OCF(TTM)4.08
OCFY3.81%
SpS33.81
BVpS21.74
TBVpS9.58
PEG (NY)1.15
PEG (5Y)2.06
Graham Number43.9
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 9.3 |
F-Score7
WACC9.6%
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 Y23.59%
EPS Next 2Y17.65%
EPS Next 3Y16.55%
EPS Next 5Y14.68%
Revenue 1Y (TTM)11.83%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%17.04%
Revenue Next Year13.28%
Revenue Next 2Y12.69%
Revenue Next 3Y12.96%
Revenue Next 5Y7.43%
EBIT growth 1Y20.31%
EBIT growth 3Y30.22%
EBIT growth 5Y13.68%
EBIT Next Year46.24%
EBIT Next 3Y21.21%
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.
What is the valuation status for FSS stock?
ChartMill assigns a valuation rating of 4 / 10 to FEDERAL SIGNAL CORP (FSS). This can be considered as Fairly Valued.
What is the profitability of FSS stock?
FEDERAL SIGNAL CORP (FSS) has a profitability rating of 9 / 10.
Can you provide the financial health for FSS stock?
The financial health rating of FEDERAL SIGNAL CORP (FSS) is 7 / 10.
Is the dividend of FEDERAL SIGNAL CORP sustainable?
The dividend rating of FEDERAL SIGNAL CORP (FSS) is 6 / 10 and the dividend payout ratio is 13.95%.