FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FSS - US3138551086 - Common Stock
110.84 USD
-0.09 (-0.08%)
110.84 USD
0 (0%)
Overall FSS gets a fundamental rating of 7 out of 10. We evaluated FSS against 130 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 has a decent growth rate and is not valued too expensively. 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.
Each year in the past 5 years FSS has been profitable.
FSS had a positive operating cash flow in each of the past 5 years.
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's Return On Equity of 17.84% is amongst the best of the industry. FSS outperforms 81.54% of its industry peers.
FSS has a Return On Invested Capital of 15.81%. This is amongst the best in the industry. FSS outperforms 89.23% of its industry peers.
FSS had an Average Return On Invested Capital over the past 3 years of 12.32%. This is in line with the industry average of 10.39%.
The last Return On Invested Capital (15.81%) for FSS is above the 3 year average (12.32%), which is a sign of increasing profitability.
| 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 better Profit Margin (11.47%) than 81.54% of its industry peers.
In the last couple of years the Profit Margin of FSS has grown nicely.
FSS has a better Operating Margin (16.08%) than 76.15% of its industry peers.
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.
In the last couple of years the Gross Margin of FSS has grown nicely.
| 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
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.
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 9.37. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.37, FSS belongs to the best of the industry, outperforming 91.54% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 0.97, FSS belongs to the top of the industry, outperforming 89.23% of the companies in the same industry.
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 | 9.37 |
ROIC/WACC1.67
WACC9.47%
2.3 Liquidity
A Current Ratio of 2.61 indicates that FSS has no problem at all paying its short term obligations.
The Current ratio of FSS (2.61) is better than 70.77% of its industry peers.
A Quick Ratio of 1.25 indicates that FSS should not have too much problems paying 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
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.
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.
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
The Earnings Per Share is expected to grow by 14.68% on average over the next years. This is quite good.
Based on estimates for the next years, FSS will show a small growth in Revenue. The Revenue will grow by 7.43% on average per year.
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 28.13 indicates a quite expensive valuation of FSS.
FSS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.46. FSS is around the same levels.
FSS is valuated rather expensively with a Price/Forward Earnings ratio of 23.98.
The rest of the industry has a similar Price/Forward Earnings ratio as FSS.
FSS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.13 | ||
| Fwd PE | 23.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FSS is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as FSS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.68 | ||
| EV/EBITDA | 16.96 |
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.
FSS's earnings are expected to grow with 16.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)2.14
EPS Next 2Y17.65%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.50%, which is pretty low.
FSS's Dividend Yield is comparable with the industry average which is at 1.90.
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
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
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%
110.84
-0.09 (-0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners103.27%
Inst Owner Change0.86%
Ins Owners1.73%
Ins Owner Change-2.92%
Market Cap6.74B
Revenue(TTM)2.06B
Net Income(TTM)235.80M
Analysts76
Price Target134.23 (21.1%)
Short Float %6.76%
Short Ratio8.79
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 | 28.13 | ||
| Fwd PE | 23.98 | ||
| P/S | 3.28 | ||
| P/FCF | 30.68 | ||
| P/OCF | 27.17 | ||
| P/B | 5.1 | ||
| P/tB | 11.57 | ||
| EV/EBITDA | 16.96 |
EPS(TTM)3.94
EY3.55%
EPS(NY)4.62
Fwd EY4.17%
FCF(TTM)3.61
FCFY3.26%
OCF(TTM)4.08
OCFY3.68%
SpS33.8
BVpS21.73
TBVpS9.58
PEG (NY)1.19
PEG (5Y)2.14
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 | 9.37 |
F-Score7
WACC9.47%
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 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%.