FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FSS - US3138551086 - Common Stock
112.24 USD
+1.85 (+1.68%)
112.24 USD
0 (0%)
Overall FSS gets a fundamental rating of 7 out of 10. We evaluated FSS against 130 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. 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.
FSS had a positive operating cash flow in the past year.
In the past 5 years FSS has always 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 86.92% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.84%, FSS is in the better half of the industry, outperforming 79.23% of the companies in the same industry.
FSS has a better Return On Invested Capital (15.81%) than 89.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSS is in line with the industry average of 10.46%.
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
FSS has a better Profit Margin (11.47%) than 78.46% of its industry peers.
In the last couple of years the Profit Margin of FSS has grown nicely.
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.
The Gross Margin of FSS (28.92%) 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FSS is creating some value.
FSS has about the same amout of shares outstanding than it did 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
FSS has an Altman-Z score of 9.34. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.34, FSS belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
FSS has a debt to FCF ratio of 0.97. This is a very positive value and a sign of high solvency as it would only need 0.97 years to pay back of 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.
FSS has a Debt to Equity ratio of 0.15. This is in the better half of the industry: FSS outperforms 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 9.34 |
ROIC/WACC1.65
WACC9.58%
2.3 Liquidity
A Current Ratio of 2.61 indicates that FSS has no problem at all paying its short term obligations.
FSS's Current ratio of 2.61 is fine compared to the rest of the industry. FSS outperforms 71.54% of its industry peers.
A Quick Ratio of 1.25 indicates that FSS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, FSS is in line with its industry, outperforming 52.31% of the companies in the same industry.
| 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.
Measured over the past years, FSS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.16% on average per year.
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.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.49 indicates a quite expensive valuation of FSS.
FSS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.59, FSS is valued at the same level.
Based on the Price/Forward Earnings ratio of 24.11, the valuation of FSS can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FSS is on the same level as its industry peers.
FSS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.49 | ||
| Fwd PE | 24.11 |
4.2 Price Multiples
FSS's Enterprise Value to EBITDA ratio is in line with the industry average.
FSS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.07 | ||
| EV/EBITDA | 16.88 |
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.
FSS's earnings are expected to grow with 16.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)2.16
EPS Next 2Y18.06%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, FSS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.84, FSS has a dividend in line with its industry peers.
With a Dividend Yield of 0.50, FSS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of FSS is nicely growing with an annual growth rate of 8.46%!
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)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.
The dividend of FSS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP13.95%
EPS Next 2Y18.06%
EPS Next 3Y16.55%
112.24
+1.85 (+1.68%)
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-2.92%
Market Cap6.83B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (19.59%)
Short Float %6.76%
Short Ratio8.79
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 | 28.49 | ||
| Fwd PE | 24.11 | ||
| P/S | 3.32 | ||
| P/FCF | 31.07 | ||
| P/OCF | 27.51 | ||
| P/B | 5.16 | ||
| P/tB | 11.72 | ||
| EV/EBITDA | 16.88 |
EPS(TTM)3.94
EY3.51%
EPS(NY)4.66
Fwd EY4.15%
FCF(TTM)3.61
FCFY3.22%
OCF(TTM)4.08
OCFY3.63%
SpS33.8
BVpS21.73
TBVpS9.58
PEG (NY)1.14
PEG (5Y)2.16
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 | 9.34 |
F-Score7
WACC9.58%
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 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%.