FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FSS - US3138551086 - Common Stock
114.23 USD
+2.58 (+2.31%)
We assign a fundamental rating of 7 out of 10 to FSS. FSS was compared to 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 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.
Each year in the past 5 years FSS had a positive operating cash flow.
1.2 Ratios
FSS has a Return On Assets of 12.16%. This is amongst the best in the industry. FSS outperforms 88.46% of its industry peers.
The Return On Equity of FSS (17.84%) is better than 81.54% of its industry peers.
The Return On Invested Capital of FSS (15.81%) is better than 89.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSS is in line with the industry average of 10.34%.
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
With an excellent Profit Margin value of 11.47%, FSS belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
FSS's Profit Margin has improved in the last couple of years.
The Operating Margin of FSS (16.08%) is better than 76.15% of its industry peers.
FSS's Operating Margin has improved in the last couple of years.
FSS has a Gross Margin of 28.92%. This is comparable to the rest of the industry: FSS outperforms 46.15% of its industry peers.
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
FSS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FSS remains at a similar level compared to 1 year ago.
The number of shares outstanding for FSS has been increased compared to 5 years ago.
The debt/assets ratio for FSS has been reduced compared to a year ago.
2.2 Solvency
FSS has an Altman-Z score of 9.41. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
FSS's Altman-Z score of 9.41 is amongst the best of 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.
FSS has a Debt to FCF ratio of 0.97. This is amongst the best in the industry. FSS outperforms 89.23% of its industry peers.
FSS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
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 | 9.41 |
ROIC/WACC1.69
WACC9.34%
2.3 Liquidity
A Current Ratio of 2.61 indicates that FSS has no problem at all paying its short term obligations.
FSS has a Current ratio of 2.61. This is in the better half of the industry: FSS outperforms 70.77% 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
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.
FSS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.83%.
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
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
FSS is valuated quite expensively with a Price/Earnings ratio of 28.99.
FSS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.98. FSS is around the same levels.
FSS is valuated rather expensively with a Price/Forward Earnings ratio of 24.71.
FSS's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, FSS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 24.71 |
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 | 31.61 | ||
| EV/EBITDA | 17.07 |
4.3 Compensation for Growth
The 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)1.23
PEG (5Y)2.2
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 1.97, FSS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of FSS is nicely growing with an annual growth rate of 8.46%!
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 13.95% of its income as dividend. This is a sustainable payout ratio.
FSS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP13.95%
EPS Next 2Y17.65%
EPS Next 3Y16.55%
NYSE:FSS (11/26/2025, 2:38:07 PM)
114.23
+2.58 (+2.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.1%
Inst Owner Change0.86%
Ins Owners1.73%
Ins Owner Change-2.92%
Market Cap6.94B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (17.51%)
Short Float %6.08%
Short Ratio7.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)1.71%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0.47%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 24.71 | ||
| P/S | 3.38 | ||
| P/FCF | 31.61 | ||
| P/OCF | 27.99 | ||
| P/B | 5.25 | ||
| P/tB | 11.92 | ||
| EV/EBITDA | 17.07 |
EPS(TTM)3.94
EY3.45%
EPS(NY)4.62
Fwd EY4.05%
FCF(TTM)3.61
FCFY3.16%
OCF(TTM)4.08
OCFY3.57%
SpS33.81
BVpS21.74
TBVpS9.58
PEG (NY)1.23
PEG (5Y)2.2
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 | 9.41 |
F-Score7
WACC9.34%
ROIC/WACC1.69
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 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 13.95%.