FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
106.16 USD
-1.18 (-1.1%)
106.16 USD
0 (0%)
FSS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 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. This makes FSS very considerable 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
The Return On Assets of FSS (12.16%) is better than 88.46% of its industry peers.
FSS's Return On Equity of 17.84% is amongst the best of the industry. FSS outperforms 81.54% of its industry peers.
FSS's Return On Invested Capital of 15.81% is amongst the best of the industry. FSS outperforms 90.00% of its industry peers.
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 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
Looking at the Profit Margin, with a value of 11.47%, FSS belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
In the last couple of years the Profit Margin of FSS has grown nicely.
FSS has a better Operating Margin (16.08%) than 76.15% of its industry peers.
FSS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 28.92%, FSS is in line with its industry, outperforming 46.15% of the companies in the same industry.
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
FSS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, FSS has about the same amount of shares outstanding.
FSS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for FSS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.15 indicates that FSS is not in any danger for bankruptcy at the moment.
FSS has a Altman-Z score of 9.15. This is amongst the best in the industry. FSS outperforms 92.31% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.97, FSS belongs to the top 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.
The Debt to Equity ratio of FSS (0.15) is better than 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 9.15 |
ROIC/WACC1.66
WACC9.5%
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.
With a decent Current ratio value of 2.61, FSS is doing good in the industry, outperforming 69.23% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that FSS should not have too much problems paying its short term obligations.
FSS has a Quick ratio (1.25) which is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 13.16% on average over the past years. This is quite good.
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
FSS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.68% yearly.
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.
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
With a Price/Earnings ratio of 26.94, FSS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as FSS.
Compared to an average S&P500 Price/Earnings ratio of 25.07, FSS is valued at the same level.
FSS is valuated rather expensively with a Price/Forward Earnings ratio of 22.96.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FSS is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of FSS to the average of the S&P500 Index (34.08), we can say FSS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.94 | ||
| Fwd PE | 22.96 |
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 | 29.37 | ||
| EV/EBITDA | 16.42 |
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)1.14
PEG (5Y)2.05
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, FSS is not a good candidate for dividend investing.
FSS's Dividend Yield is comparable with the industry average which is at 1.87.
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 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 2Y17.65%
EPS Next 3Y16.55%
106.16
-1.18 (-1.1%)
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 Cap6.45B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (26.44%)
Short Float %6.08%
Short Ratio7.41
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 | 26.94 | ||
| Fwd PE | 22.96 | ||
| P/S | 3.14 | ||
| P/FCF | 29.37 | ||
| P/OCF | 26.01 | ||
| P/B | 4.88 | ||
| P/tB | 11.08 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)3.94
EY3.71%
EPS(NY)4.62
Fwd EY4.35%
FCF(TTM)3.61
FCFY3.4%
OCF(TTM)4.08
OCFY3.84%
SpS33.81
BVpS21.74
TBVpS9.58
PEG (NY)1.14
PEG (5Y)2.05
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 | 9.15 |
F-Score7
WACC9.5%
ROIC/WACC1.66
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%.