FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FSS - US3138551086 - Common Stock
114 USD
+1.21 (+1.07%)
114 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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FSS is not valued too expensively and it also shows a decent growth rate. These ratings would make FSS suitable 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.
Each year in the past 5 years FSS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.16%, FSS belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
The Return On Equity of FSS (17.84%) is better than 81.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.81%, FSS belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FSS is in line with the industry average of 10.35%.
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
FSS has a Profit Margin of 11.47%. This is amongst the best in the industry. FSS outperforms 81.54% of its industry peers.
In the last couple of years the Profit Margin of FSS has grown nicely.
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.
The Gross Margin of FSS (28.92%) 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
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.
Compared to 1 year ago, FSS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.55 indicates that FSS is not in any danger for bankruptcy at the moment.
FSS's Altman-Z score of 9.55 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.
With an excellent Debt to FCF ratio value of 0.97, FSS belongs to the best of the industry, outperforming 89.23% of the companies in the same industry.
FSS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
FSS has a better Debt to Equity ratio (0.15) than 76.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.97 | ||
| Altman-Z | 9.55 |
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's Current ratio of 2.61 is fine compared to the rest 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 in line with its industry peers.
| 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.
FSS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.83%.
The Revenue has been growing by 8.79% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 14.68% on average over the next years. This is quite good.
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.
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 28.93 indicates a quite expensive valuation of FSS.
Compared to the rest of the industry, the Price/Earnings ratio of FSS is on the same level as its industry peers.
FSS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 24.66, the valuation of FSS can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as FSS.
The average S&P500 Price/Forward Earnings ratio is at 36.56. FSS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.93 | ||
| Fwd PE | 24.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as FSS.
FSS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.55 | ||
| EV/EBITDA | 17.42 |
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)1.23
PEG (5Y)2.2
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, FSS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.90, FSS has a dividend in line with its industry peers.
With a Dividend Yield of 0.50, FSS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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.
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%
114
+1.21 (+1.07%)
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 Cap6.93B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (17.75%)
Short Float %6.08%
Short Ratio7.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 | 28.93 | ||
| Fwd PE | 24.66 | ||
| P/S | 3.37 | ||
| P/FCF | 31.55 | ||
| P/OCF | 27.94 | ||
| P/B | 5.25 | ||
| P/tB | 11.9 | ||
| EV/EBITDA | 17.42 |
EPS(TTM)3.94
EY3.46%
EPS(NY)4.62
Fwd EY4.06%
FCF(TTM)3.61
FCFY3.17%
OCF(TTM)4.08
OCFY3.58%
SpS33.8
BVpS21.73
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 | 9.55 |
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%.