FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
110.95 USD
-2.12 (-1.87%)
110.95 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 gets an excellent profitability rating and is at the same time showing great financial health properties. FSS has a correct valuation and a medium 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
FSS has a Return On Assets of 11.57%. This is amongst the best in the industry. FSS outperforms 86.15% of its industry peers.
FSS's Return On Equity of 17.56% is fine compared to the rest of the industry. FSS outperforms 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.02%, FSS belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
FSS had an Average Return On Invested Capital over the past 3 years of 12.32%. This is above the industry average of 10.24%.
The 3 year average ROIC (12.32%) for FSS is below the current ROIC(15.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 17.56% | ||
| ROIC | 15.02% |
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 Profit Margin of 11.22%. This is amongst the best in the industry. FSS outperforms 81.54% of its industry peers.
FSS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.77%, FSS is in the better half of the industry, outperforming 73.08% 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 29.04% is in line compared to the rest of the industry. FSS outperforms 44.62% of its industry peers.
FSS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.77% | ||
| PM (TTM) | 11.22% | ||
| GM | 29.04% |
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.
FSS has a better debt/assets ratio than last year.
2.2 Solvency
FSS has an Altman-Z score of 9.02. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.02, FSS belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
FSS has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
FSS has a better Debt to FCF ratio (1.19) than 86.15% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that FSS is not too dependend on debt financing.
FSS's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. FSS outperforms 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 9.02 |
ROIC/WACC1.57
WACC9.59%
2.3 Liquidity
FSS has a Current Ratio of 2.60. This indicates that FSS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.60, FSS is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
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 has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.74% over the past year.
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.
The Revenue has grown by 8.06% in the past year. This is quite good.
Measured over the past years, FSS shows a quite strong growth in Revenue. The Revenue has been growing by 8.79% on average per year.
EPS 1Y (TTM)22.74%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%29.55%
Revenue 1Y (TTM)8.06%
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 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
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.
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 28.16 indicates a quite expensive valuation of FSS.
FSS's Price/Earnings ratio is in line with the industry average.
FSS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.67.
With a Price/Forward Earnings ratio of 24.00, FSS is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as FSS.
Compared to an average S&P500 Price/Forward Earnings ratio of 31.86, FSS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FSS.
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 | 29.82 | ||
| EV/EBITDA | 18.42 |
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)1.19
PEG (5Y)2.14
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, FSS is not a good candidate for dividend investing.
FSS's Dividend Yield is comparable with the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.40, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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
FSS pays out 14.17% of its income as dividend. This is a sustainable payout ratio.
The dividend of FSS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP14.17%
EPS Next 2Y17.65%
EPS Next 3Y16.55%
110.95
-2.12 (-1.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change-1.8%
Ins Owners1.73%
Ins Owner Change-0.78%
Market Cap6.74B
Revenue(TTM)1.86B
Net Income(TTM)221.60M
Analysts76
Price Target134.23 (20.98%)
Short Float %6.06%
Short Ratio8.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.48
Dividend Growth(5Y)8.46%
DP14.17%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.14%
Min EPS beat(2)2.84%
Max EPS beat(2)9.43%
EPS beat(4)3
Avg EPS beat(4)3.84%
Min EPS beat(4)-1.15%
Max EPS beat(4)9.43%
EPS beat(8)7
Avg EPS beat(8)7.2%
EPS beat(12)10
Avg EPS beat(12)6.34%
EPS beat(16)14
Avg EPS beat(16)7.52%
Revenue beat(2)1
Avg Revenue beat(2)1.66%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)4.05%
Revenue beat(4)1
Avg Revenue beat(4)-0.56%
Min Revenue beat(4)-3.02%
Max Revenue beat(4)4.05%
Revenue beat(8)3
Avg Revenue beat(8)0.14%
Revenue beat(12)6
Avg Revenue beat(12)0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.05%
PT rev (1m)0.92%
PT rev (3m)21.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 24 | ||
| P/S | 3.42 | ||
| P/FCF | 29.82 | ||
| P/OCF | 26.38 | ||
| P/B | 5.34 | ||
| P/tB | 12.92 | ||
| EV/EBITDA | 18.42 |
EPS(TTM)3.94
EY3.55%
EPS(NY)4.62
Fwd EY4.17%
FCF(TTM)3.72
FCFY3.35%
OCF(TTM)4.21
OCFY3.79%
SpS32.48
BVpS20.76
TBVpS8.59
PEG (NY)1.19
PEG (5Y)2.14
Graham Number42.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 17.56% | ||
| ROCE | 18.84% | ||
| ROIC | 15.02% | ||
| ROICexc | 15.64% | ||
| ROICexgc | 29.28% | ||
| OM | 15.77% | ||
| PM (TTM) | 11.22% | ||
| GM | 29.04% | ||
| FCFM | 11.46% |
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-Score6
Asset Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 40.47% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.54% | ||
| Profit Quality | 102.08% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 9.02 |
F-Score6
WACC9.59%
ROIC/WACC1.57
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)8.06%
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 1Y19.13%
EBIT growth 3Y30.22%
EBIT growth 5Y13.68%
EBIT Next Year46.24%
EBIT Next 3Y21.21%
EBIT Next 5Y19.57%
FCF growth 1Y246.93%
FCF growth 3Y43.6%
FCF growth 5Y23.01%
OCF growth 1Y176.73%
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 14.17%.