FEDERAL SIGNAL CORP (FSS)
US3138551086 - Common Stock
Taking everything into account, FSS scores 7 out of 10 in our fundamental rating. FSS was compared to 132 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 is not valued too expensively and it also shows a decent growth rate. With these ratings, FSS could be worth investigating further 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.
Each year in the past 5 years FSS had a positive operating cash flow.
1.2 Ratios
FSS has a better Return On Assets (12.27%) than 86.15% of its industry peers.
The Return On Equity of FSS (18.51%) is better than 79.23% of its industry peers.
FSS's Return On Invested Capital of 14.39% is amongst the best of the industry. FSS outperforms 84.62% of its industry peers.
FSS had an Average Return On Invested Capital over the past 3 years of 10.09%. This is in line with the industry average of 10.90%.
The 3 year average ROIC (10.09%) for FSS is below the current ROIC(14.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 18.51% | ||
| ROIC | 14.39% |
ROA(3y)8.33%
ROA(5y)8.45%
ROE(3y)14.18%
ROE(5y)14.63%
ROIC(3y)10.09%
ROIC(5y)10.39%
1.3 Margins
The Profit Margin of FSS (11.57%) is better than 80.77% of its industry peers.
FSS's Profit Margin has been stable in the last couple of years.
The Operating Margin of FSS (14.97%) is better than 73.85% of its industry peers.
FSS's Operating Margin has improved in the last couple of years.
FSS has a Gross Margin (28.28%) which is in line with its industry peers.
FSS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.97% | ||
| PM (TTM) | 11.57% | ||
| GM | 28.28% |
OM growth 3Y3.08%
OM growth 5Y2.95%
PM growth 3Y2.41%
PM growth 5Y1.15%
GM growth 3Y0.22%
GM growth 5Y0.19%
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.
The number of shares outstanding for FSS has been increased compared to 1 year ago.
FSS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FSS has an improved debt to assets ratio.
2.2 Solvency
FSS has an Altman-Z score of 8.49. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FSS (8.49) is better than 90.77% of its industry peers.
The Debt to FCF ratio of FSS is 1.14, which is an excellent value as it means it would take FSS, only 1.14 years of fcf income to pay off all of its debts.
FSS has a Debt to FCF ratio of 1.14. This is amongst the best in the industry. FSS outperforms 88.46% of its industry peers.
FSS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
FSS has a better Debt to Equity ratio (0.19) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 8.49 |
ROIC/WACC1.58
WACC9.1%
2.3 Liquidity
A Current Ratio of 2.83 indicates that FSS has no problem at all paying its short term obligations.
FSS has a better Current ratio (2.83) than 73.08% of its industry peers.
A Quick Ratio of 1.36 indicates that FSS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, FSS is in line with its industry, outperforming 55.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
FSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.20%, 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 12.53% on average per year.
FSS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.33%.
Measured over the past years, FSS shows a quite strong growth in Revenue. The Revenue has been growing by 9.60% on average per year.
EPS 1Y (TTM)33.2%
EPS 3Y15.6%
EPS 5Y12.53%
EPS Q2Q%23.94%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y15.06%
Revenue growth 5Y9.6%
Sales Q2Q%6.23%
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 17.42% yearly.
FSS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y31.09%
EPS Next 2Y20.91%
EPS Next 3Y17.42%
EPS Next 5YN/A
Revenue Next Year9.94%
Revenue Next 2Y8.69%
Revenue Next 3Y8.1%
Revenue Next 5Y7.8%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 28.60, the valuation of FSS can be described as expensive.
62.31% of the companies in the same industry are cheaper than FSS, based on the Price/Earnings ratio.
FSS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
FSS is valuated rather expensively with a Price/Forward Earnings ratio of 24.34.
FSS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, FSS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 24.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSS is on the same level as its industry peers.
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 | 27.62 | ||
| EV/EBITDA | 17.05 |
4.3 Compensation for Growth
FSS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 17.42% in the coming years.
PEG (NY)0.92
PEG (5Y)2.28
EPS Next 2Y20.91%
EPS Next 3Y17.42%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.49%, which is pretty low.
FSS's Dividend Yield is comparable with the industry average which is at 1.61.
With a Dividend Yield of 0.49, FSS pays less dividend than the S&P500 average, which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of FSS has a limited annual growth rate of 4.68%.
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)4.68%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
13.21% 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.
DP13.21%
EPS Next 2Y20.91%
EPS Next 3Y17.42%
FEDERAL SIGNAL CORP
NYSE:FSS (12/20/2024, 8:13:12 PM)
After market: 91.8 0 (0%)91.8
+0.03 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.35%
Inst Owner Change-1.34%
Ins Owners3.45%
Ins Owner Change-0.23%
Market Cap5.61B
Analysts76
Price Target98.94 (7.78%)
Short Float %4.44%
Short Ratio6.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Dividend Growth(5Y)4.68%
DP13.21%
Div Incr Years2
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.88%
Min EPS beat(2)4.26%
Max EPS beat(2)11.51%
EPS beat(4)4
Avg EPS beat(4)9.87%
Min EPS beat(4)4.26%
Max EPS beat(4)12.12%
EPS beat(8)8
Avg EPS beat(8)8.28%
EPS beat(12)11
Avg EPS beat(12)8.82%
EPS beat(16)15
Avg EPS beat(16)8.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-2.52%
Max Revenue beat(4)3.59%
Revenue beat(8)5
Avg Revenue beat(8)1.1%
Revenue beat(12)6
Avg Revenue beat(12)0.68%
Revenue beat(16)8
Avg Revenue beat(16)0.47%
PT rev (1m)-1.02%
PT rev (3m)-1.02%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)9.61%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 24.34 | ||
| P/S | 3.05 | ||
| P/FCF | 27.62 | ||
| P/OCF | 22.98 | ||
| P/B | 4.88 | ||
| P/tB | 11.67 | ||
| EV/EBITDA | 17.05 |
EPS(TTM)3.21
EY3.5%
EPS(NY)3.77
Fwd EY4.11%
FCF(TTM)3.32
FCFY3.62%
OCF(TTM)3.99
OCFY4.35%
SpS30.08
BVpS18.81
TBVpS7.87
PEG (NY)0.92
PEG (5Y)2.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 18.51% | ||
| ROCE | 18.29% | ||
| ROIC | 14.39% | ||
| ROICexc | 15.13% | ||
| ROICexgc | 28.41% | ||
| OM | 14.97% | ||
| PM (TTM) | 11.57% | ||
| GM | 28.28% | ||
| FCFM | 11.05% |
ROA(3y)8.33%
ROA(5y)8.45%
ROE(3y)14.18%
ROE(5y)14.63%
ROIC(3y)10.09%
ROIC(5y)10.39%
ROICexc(3y)10.49%
ROICexc(5y)10.88%
ROICexgc(3y)21.77%
ROICexgc(5y)23.56%
ROCE(3y)12.82%
ROCE(5y)13.21%
ROICexcg growth 3Y1.71%
ROICexcg growth 5Y-3.71%
ROICexc growth 3Y6.19%
ROICexc growth 5Y2.1%
OM growth 3Y3.08%
OM growth 5Y2.95%
PM growth 3Y2.41%
PM growth 5Y1.15%
GM growth 3Y0.22%
GM growth 5Y0.19%
F-Score8
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 65.08% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.2% | ||
| Profit Quality | 95.49% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 8.49 |
F-Score8
WACC9.1%
ROIC/WACC1.58
Cap/Depr(3y)73.75%
Cap/Depr(5y)74.57%
Cap/Sales(3y)2.85%
Cap/Sales(5y)2.81%
Profit Quality(3y)61.3%
Profit Quality(5y)71.4%
High Growth Momentum
Growth
EPS 1Y (TTM)33.2%
EPS 3Y15.6%
EPS 5Y12.53%
EPS Q2Q%23.94%
EPS Next Y31.09%
EPS Next 2Y20.91%
EPS Next 3Y17.42%
EPS Next 5YN/A
Revenue 1Y (TTM)10.33%
Revenue growth 3Y15.06%
Revenue growth 5Y9.6%
Sales Q2Q%6.23%
Revenue Next Year9.94%
Revenue Next 2Y8.69%
Revenue Next 3Y8.1%
Revenue Next 5Y7.8%
EBIT growth 1Y30.69%
EBIT growth 3Y18.6%
EBIT growth 5Y12.83%
EBIT Next Year58.61%
EBIT Next 3Y23.24%
EBIT Next 5YN/A
FCF growth 1Y2261.63%
FCF growth 3Y15.5%
FCF growth 5Y15.83%
OCF growth 1Y208.6%
OCF growth 3Y12.59%
OCF growth 5Y15.94%