FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - NYSE:FSS - US3138551086 - Common Stock
125.03 USD
-0.57 (-0.45%)
125.03 USD
0 (0%)
Taking everything into account, FSS scores 6 out of 10 in our fundamental rating. FSS was compared to 128 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 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.
In the past year FSS had a positive cash flow from operations.
In the past 5 years FSS has always 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 (11.57%) than 86.72% of its industry peers.
FSS has a Return On Equity of 17.56%. This is amongst the best in the industry. FSS outperforms 81.25% of its industry peers.
FSS's Return On Invested Capital of 15.02% is amongst the best of the industry. FSS outperforms 88.28% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FSS is above the industry average of 10.02%.
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's Profit Margin of 11.22% is amongst the best of the industry. FSS outperforms 81.25% of its industry peers.
FSS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.77%, FSS is in the better half of the industry, outperforming 75.00% 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 (29.04%) which is comparable to the rest of the industry.
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
FSS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
FSS has a better debt/assets ratio than last year.
2.2 Solvency
FSS has an Altman-Z score of 9.69. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
FSS has a better Altman-Z score (9.69) than 91.41% of its industry peers.
FSS has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.19, FSS belongs to the best of the industry, outperforming 85.16% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that FSS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, FSS is in the better half of the industry, outperforming 72.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 9.69 |
ROIC/WACC1.52
WACC9.9%
2.3 Liquidity
A Current Ratio of 2.60 indicates that FSS has no problem at all paying its short term obligations.
FSS has a Current ratio of 2.60. This is in the better half of the industry: FSS outperforms 70.31% 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 | 2.6 | ||
| 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.
FSS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.09%.
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)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 15.84% 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 Y21.52%
EPS Next 2Y16.67%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue Next Year12.75%
Revenue Next 2Y10.1%
Revenue Next 3Y9.64%
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 accelerating.
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
A Price/Earnings ratio of 33.98 indicates a quite expensive valuation of FSS.
FSS's Price/Earnings ratio is a bit more expensive when compared to the industry. FSS is more expensive than 65.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.20. FSS is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 27.50, FSS can be considered very expensive at the moment.
FSS's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FSS is more expensive than 63.28% of the companies in the same industry.
FSS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 27.5 |
4.2 Price Multiples
FSS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. FSS is more expensive than 64.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSS indicates a slightly more expensive valuation: FSS is more expensive than 60.16% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.6 | ||
| EV/EBITDA | 20.31 |
4.3 Compensation for Growth
The 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.
FSS's earnings are expected to grow with 15.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)2.58
EPS Next 2Y16.67%
EPS Next 3Y15.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.44%, FSS is not a good candidate for dividend investing.
FSS's Dividend Yield is comparable with the industry average which is at 1.74.
With a Dividend Yield of 0.44, FSS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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 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
FSS pays out 14.17% 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.
DP14.17%
EPS Next 2Y16.67%
EPS Next 3Y15.84%
125.03
-0.57 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.76%
Inst Owner Change-0.62%
Ins Owners1.73%
Ins Owner Change1.14%
Market Cap7.60B
Analysts76
Price Target133.01 (6.38%)
Short Float %5.02%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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%
PT rev (3m)25.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.01%
EPS NY rev (1m)5.2%
EPS NY rev (3m)5.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.01%
Revenue NY rev (1m)2.7%
Revenue NY rev (3m)2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.98 | ||
| Fwd PE | 27.5 | ||
| P/S | 3.85 | ||
| P/FCF | 33.6 | ||
| P/OCF | 29.72 | ||
| P/B | 6.02 | ||
| P/tB | 14.56 | ||
| EV/EBITDA | 20.31 |
EPS(TTM)3.68
EY2.94%
EPS(NY)4.55
Fwd EY3.64%
FCF(TTM)3.72
FCFY2.98%
OCF(TTM)4.21
OCFY3.36%
SpS32.48
BVpS20.76
TBVpS8.59
PEG (NY)1.58
PEG (5Y)2.58
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%
ROICexcg growth 3Y14.81%
ROICexcg 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
WACC9.9%
ROIC/WACC1.52
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 Y21.52%
EPS Next 2Y16.67%
EPS Next 3Y15.84%
EPS Next 5YN/A
Revenue 1Y (TTM)9.09%
Revenue growth 3Y15.34%
Revenue growth 5Y8.79%
Sales Q2Q%15.13%
Revenue Next Year12.75%
Revenue Next 2Y10.1%
Revenue Next 3Y9.64%
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 5YN/A
FCF growth 1Y246.93%
FCF growth 3Y43.6%
FCF growth 5Y23.01%
OCF growth 1Y176.73%
OCF growth 3Y31.46%
OCF growth 5Y17.54%