FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
107.64 USD
+0.9 (+0.84%)
We assign a fundamental rating of 7 out of 10 to FSS. FSS was compared to 130 industry peers in the Machinery industry. FSS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FSS has a correct valuation and a medium growth rate. 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.
In the past 5 years FSS always reported a positive cash flow from operatings.
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.
FSS has a better Return On Equity (17.84%) than 81.54% of its industry peers.
FSS has a better Return On Invested Capital (15.81%) than 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSS is above the industry average of 10.24%.
The 3 year average ROIC (12.32%) for FSS is below the current ROIC(15.81%), indicating increased profibility in the last year.
| 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.
FSS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 16.08%, FSS is in the better half of the industry, outperforming 76.15% of the companies in the same industry.
In the last couple of years the Operating Margin of FSS has grown nicely.
FSS has a Gross Margin (28.92%) which is comparable to the rest of the industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FSS is creating some value.
FSS has about the same amout of shares outstanding than it did 1 year ago.
FSS has more shares outstanding than it did 5 years ago.
FSS has a better debt/assets ratio than last year.
2.2 Solvency
FSS has an Altman-Z score of 9.12. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
FSS has a better Altman-Z score (9.12) 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.
FSS's Debt to FCF ratio of 0.97 is amongst the best of the industry. FSS outperforms 89.23% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that FSS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.15, FSS is doing good in the industry, outperforming 76.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 9.12 |
ROIC/WACC1.67
WACC9.49%
2.3 Liquidity
A Current Ratio of 2.61 indicates that FSS has no problem at all paying its short term obligations.
FSS's Current ratio of 2.61 is fine compared to the rest of the industry. FSS outperforms 69.23% 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.
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
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.
FSS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.16% yearly.
The Revenue has grown by 11.83% 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)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.
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.
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 27.32 indicates a quite expensive valuation of FSS.
FSS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.46, FSS is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.28, the valuation of FSS can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as FSS.
When comparing the Price/Forward Earnings ratio of FSS to the average of the S&P500 Index (35.39), we can say FSS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 23.28 |
4.2 Price Multiples
FSS's Enterprise Value to EBITDA is on the same level as the industry average.
FSS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.78 | ||
| EV/EBITDA | 16.33 |
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 16.55% in the coming years.
PEG (NY)1.16
PEG (5Y)2.08
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.51%, which is pretty low.
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
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
FSS pays out 13.95% 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.
DP13.95%
EPS Next 2Y17.65%
EPS Next 3Y16.55%
NYSE:FSS (11/19/2025, 2:58:20 PM)
107.64
+0.9 (+0.84%)
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 Cap6.54B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (24.7%)
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 | 27.32 | ||
| Fwd PE | 23.28 | ||
| P/S | 3.18 | ||
| P/FCF | 29.78 | ||
| P/OCF | 26.37 | ||
| P/B | 4.95 | ||
| P/tB | 11.24 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)3.94
EY3.66%
EPS(NY)4.62
Fwd EY4.29%
FCF(TTM)3.61
FCFY3.36%
OCF(TTM)4.08
OCFY3.79%
SpS33.81
BVpS21.74
TBVpS9.58
PEG (NY)1.16
PEG (5Y)2.08
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 | 9.12 |
F-Score7
WACC9.49%
ROIC/WACC1.67
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%.