FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FSS - US3138551086 - Common Stock
110.37 USD
+1.68 (+1.55%)
110.37 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FSS has a decent growth rate and is not valued too expensively. 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.
In the past year FSS had a positive cash flow from operations.
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
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.
The Return On Equity of FSS (17.84%) is better than 81.54% of its industry peers.
The Return On Invested Capital of FSS (15.81%) is better 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 10.34%.
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 has a better Profit Margin (11.47%) than 80.77% of its industry peers.
In the last couple of years the Profit Margin of FSS has grown nicely.
FSS has a Operating Margin of 16.08%. This is in the better half of the industry: FSS outperforms 76.15% of its industry peers.
In the last couple of years the Operating Margin of FSS has grown nicely.
FSS has a Gross Margin of 28.92%. This is comparable to the rest of the industry: FSS outperforms 46.15% of its industry peers.
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
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for FSS has been increased compared to 5 years ago.
The debt/assets ratio for FSS has been reduced compared to a year ago.
2.2 Solvency
FSS has an Altman-Z score of 9.33. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
FSS has a better Altman-Z score (9.33) than 92.31% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 0.97, FSS belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that FSS is not too dependend on debt financing.
FSS's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. FSS outperforms 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 9.33 |
ROIC/WACC1.69
WACC9.35%
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 Current ratio of 2.61. This is in the better half of the industry: FSS outperforms 70.77% 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.
Looking at the Quick ratio, with a value of 1.25, FSS is in line with its industry, outperforming 53.08% 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.
The Earnings Per Share has been growing by 13.16% on average over the past years. This is quite good.
FSS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.83%.
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.
FSS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.43% yearly.
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 28.01, the valuation of FSS can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as FSS.
Compared to an average S&P500 Price/Earnings ratio of 25.65, FSS is valued at the same level.
A Price/Forward Earnings ratio of 23.87 indicates a rather expensive valuation of FSS.
FSS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, FSS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.01 | ||
| Fwd PE | 23.87 |
4.2 Price Multiples
FSS's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as FSS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.54 | ||
| EV/EBITDA | 16.88 |
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.
A more expensive valuation may be justified as FSS's earnings are expected to grow with 16.55% in the coming years.
PEG (NY)1.19
PEG (5Y)2.13
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, FSS is not a good candidate for dividend investing.
FSS's Dividend Yield is comparable with the industry average which is at 1.97.
With a Dividend Yield of 0.53, FSS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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 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%
110.37
+1.68 (+1.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change0.86%
Ins Owners1.73%
Ins Owner Change-2.92%
Market Cap6.71B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (21.62%)
Short Float %6.08%
Short Ratio7.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)1.71%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.01 | ||
| Fwd PE | 23.87 | ||
| P/S | 3.26 | ||
| P/FCF | 30.54 | ||
| P/OCF | 27.04 | ||
| P/B | 5.08 | ||
| P/tB | 11.52 | ||
| EV/EBITDA | 16.88 |
EPS(TTM)3.94
EY3.57%
EPS(NY)4.62
Fwd EY4.19%
FCF(TTM)3.61
FCFY3.27%
OCF(TTM)4.08
OCFY3.7%
SpS33.81
BVpS21.74
TBVpS9.58
PEG (NY)1.19
PEG (5Y)2.13
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 | 9.33 |
F-Score7
WACC9.35%
ROIC/WACC1.69
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 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%.