FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FSS - US3138551086 - Common Stock
113.44 USD
-0.75 (-0.66%)
113.44 USD
0 (0%)
FSS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making FSS a very profitable company, without any liquidiy or solvency issues. FSS is not valued too expensively and it also shows a decent growth rate. These ratings would make FSS suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year FSS was profitable.
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
With an excellent Return On Assets value of 12.16%, FSS belongs to the best of the industry, outperforming 87.12% of the companies in the same industry.
The Return On Equity of FSS (17.84%) is better than 79.55% of its industry peers.
FSS has a better Return On Invested Capital (15.81%) than 90.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FSS is above the industry average of 10.27%.
The 3 year average ROIC (12.32%) for FSS is below the current ROIC(15.81%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 11.47%, FSS is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
FSS's Profit Margin has improved in the last couple of years.
FSS has a Operating Margin of 16.08%. This is in the better half of the industry: FSS outperforms 77.27% of its industry peers.
In the last couple of years the Operating Margin of FSS has grown nicely.
FSS has a Gross Margin (28.92%) which is comparable to the rest of the industry.
FSS's Gross Margin has improved in the last couple of years.
| 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 9.56 indicates that FSS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.56, FSS belongs to the best of the industry, outperforming 91.67% 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.
Looking at the Debt to FCF ratio, with a value of 0.97, FSS belongs to the top of the industry, outperforming 89.39% of the companies in the same industry.
FSS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.15, FSS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 9.56 |
ROIC/WACC1.67
WACC9.44%
2.3 Liquidity
A Current Ratio of 2.61 indicates that FSS has no problem at all paying its short term obligations.
FSS has a Current ratio of 2.61. This is in the better half of the industry: FSS outperforms 71.97% of its industry peers.
FSS has a Quick Ratio of 1.25. 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 1.25 is in line compared to the rest of the industry. FSS outperforms 53.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| 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 22.74%, which is quite impressive.
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
The Earnings Per Share is expected to grow by 14.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.43% on average over the next years.
EPS Next Y24.9%
EPS Next 2Y18.06%
EPS Next 3Y16.55%
EPS Next 5Y14.68%
Revenue Next Year13.55%
Revenue Next 2Y13.81%
Revenue Next 3Y12.96%
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.
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 28.79, the valuation of FSS can be described as expensive.
FSS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of FSS to the average of the S&P500 Index (26.57), we can say FSS is valued inline with the index average.
A Price/Forward Earnings ratio of 24.37 indicates a rather expensive valuation of FSS.
FSS's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.04. FSS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.79 | ||
| Fwd PE | 24.37 |
4.2 Price Multiples
FSS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.4 | ||
| EV/EBITDA | 17.45 |
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.
A more expensive valuation may be justified as FSS's earnings are expected to grow with 16.55% in the coming years.
PEG (NY)1.16
PEG (5Y)2.19
EPS Next 2Y18.06%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.50%, which is pretty low.
FSS's Dividend Yield is comparable with the industry average which is at 1.04.
Compared to an average S&P500 Dividend Yield of 1.88, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
On average, the dividend of FSS grows each year by 8.46%, which is quite nice.
FSS has paid a dividend for at least 10 years, which is 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
13.95% 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.
DP13.95%
EPS Next 2Y18.06%
EPS Next 3Y16.55%
113.44
-0.75 (-0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.27%
Inst Owner Change0.86%
Ins Owners1.73%
Ins Owner Change-3.01%
Market Cap6.90B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price TargetN/A
Short Float %6.52%
Short Ratio7.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)0.4%
EPS NQ rev (3m)4.68%
EPS NY rev (1m)1.06%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.79 | ||
| Fwd PE | 24.37 | ||
| P/S | 3.36 | ||
| P/FCF | 31.4 | ||
| P/OCF | 27.8 | ||
| P/B | 5.22 | ||
| P/tB | 11.84 | ||
| EV/EBITDA | 17.45 |
EPS(TTM)3.94
EY3.47%
EPS(NY)4.66
Fwd EY4.1%
FCF(TTM)3.61
FCFY3.18%
OCF(TTM)4.08
OCFY3.6%
SpS33.8
BVpS21.73
TBVpS9.58
PEG (NY)1.16
PEG (5Y)2.19
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 | 9.56 |
F-Score7
WACC9.44%
ROIC/WACC1.67
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 Y24.9%
EPS Next 2Y18.06%
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 Year13.55%
Revenue Next 2Y13.81%
Revenue Next 3Y12.96%
Revenue Next 5Y7.43%
EBIT growth 1Y20.31%
EBIT growth 3Y30.22%
EBIT growth 5Y13.68%
EBIT Next Year48.74%
EBIT Next 3Y23.62%
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 8 / 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%.