FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
125.3 USD
+0.24 (+0.19%)
125.3 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 is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make FSS a good candidate 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.
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's Return On Assets of 11.57% is amongst the best of the industry. FSS outperforms 86.92% of its industry peers.
With an excellent Return On Equity value of 17.56%, FSS belongs to the best of the industry, outperforming 81.54% of the companies in the same industry.
FSS has a better Return On Invested Capital (15.02%) than 88.46% 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 10.00%.
The last Return On Invested Capital (15.02%) for FSS is above the 3 year average (12.32%), which is a sign of increasing profitability.
| 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 better Profit Margin (11.22%) than 81.54% of its industry peers.
FSS's Profit Margin has improved in the last couple of years.
FSS has a better Operating Margin (15.77%) than 74.62% of its industry peers.
FSS's Operating Margin has improved in the last couple of years.
FSS has a Gross Margin (29.04%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FSS has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FSS is still creating some value.
Compared to 1 year ago, FSS has about the same amount of shares outstanding.
The number of shares outstanding for FSS has been increased compared to 5 years ago.
Compared to 1 year ago, FSS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.69 indicates that FSS is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.69, FSS belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Debt to FCF ratio of FSS is 1.19, which is an excellent value as it means it would take FSS, only 1.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.19, FSS belongs to the top of the industry, outperforming 86.15% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that FSS is not too dependend on debt financing.
FSS has a better Debt to Equity ratio (0.20) than 71.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 9.69 |
ROIC/WACC1.59
WACC9.42%
2.3 Liquidity
A Current Ratio of 2.60 indicates that FSS has no problem at all paying 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.
Looking at the Quick ratio, with a value of 1.25, FSS is in line with its industry, outperforming 47.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| 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 21.05%, which is quite impressive.
FSS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.16% yearly.
Looking at the last year, FSS shows a quite strong growth in Revenue. The Revenue has grown by 9.09% in the last year.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
EPS 1Y (TTM)21.05%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%23.16%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%15.13%
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 Y21.61%
EPS Next 2Y17.23%
EPS Next 3Y15.35%
EPS Next 5Y14.68%
Revenue Next Year12.75%
Revenue Next 2Y12.64%
Revenue Next 3Y13.01%
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
The Price/Earnings ratio is 34.05, which means the current valuation is very expensive for FSS.
61.54% of the companies in the same industry are cheaper than FSS, based on the Price/Earnings ratio.
FSS is valuated rather expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 27.30, FSS can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, FSS is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, FSS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 27.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSS indicates a slightly more expensive valuation: FSS is more expensive than 60.77% of the companies listed in the same industry.
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 | 33.67 | ||
| EV/EBITDA | 20.31 |
4.3 Compensation for Growth
FSS's 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 15.35% in the coming years.
PEG (NY)1.58
PEG (5Y)2.59
EPS Next 2Y17.23%
EPS Next 3Y15.35%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.47%, which is pretty low.
FSS's Dividend Yield is comparable with the industry average which is at 1.80.
Compared to an average S&P500 Dividend Yield of 2.34, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
On average, the dividend of FSS grows each year by 8.46%, which is quite nice.
FSS has been paying a dividend for at least 10 years, so it has 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
14.17% of the earnings are spent on dividend by FSS. This is a low number and sustainable payout ratio.
FSS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP14.17%
EPS Next 2Y17.23%
EPS Next 3Y15.35%
125.3
+0.24 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change0.26%
Ins Owners1.73%
Ins Owner Change0.9%
Market Cap7.62B
Revenue(TTM)1.97B
Net Income(TTM)221.60M
Analysts76
Price Target134.23 (7.13%)
Short Float %4.83%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
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)4.01%
EPS NY rev (1m)0.07%
EPS NY rev (3m)5.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.05 | ||
| Fwd PE | 27.3 | ||
| P/S | 3.86 | ||
| P/FCF | 33.67 | ||
| P/OCF | 29.79 | ||
| P/B | 6.03 | ||
| P/tB | 14.59 | ||
| EV/EBITDA | 20.31 |
EPS(TTM)3.68
EY2.94%
EPS(NY)4.59
Fwd EY3.66%
FCF(TTM)3.72
FCFY2.97%
OCF(TTM)4.21
OCFY3.36%
SpS32.48
BVpS20.76
TBVpS8.59
PEG (NY)1.58
PEG (5Y)2.59
Graham Number41.46
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 | 9.69 |
F-Score6
WACC9.42%
ROIC/WACC1.59
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)21.05%
EPS 3Y23.81%
EPS 5Y13.16%
EPS Q2Q%23.16%
EPS Next Y21.61%
EPS Next 2Y17.23%
EPS Next 3Y15.35%
EPS Next 5Y14.68%
Revenue 1Y (TTM)9.09%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%15.13%
Revenue Next Year12.75%
Revenue Next 2Y12.64%
Revenue Next 3Y13.01%
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 5Y19.64%
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 2 / 10 to FEDERAL SIGNAL CORP (FSS). This can be considered as Overvalued.
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 14.17%.