FEDERAL SIGNAL CORP (FSS) Stock Fundamental Analysis
NYSE:FSS - New York Stock Exchange, Inc. - US3138551086 - Common Stock - Currency: USD
Overall FSS gets a fundamental rating of 7 out of 10. We evaluated FSS against 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. These ratings could make FSS a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
FSS had positive earnings in the past year.
FSS had a positive operating cash flow in the past year.
FSS had positive earnings in each of the past 5 years.
FSS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FSS has a Return On Assets of 12.27%. This is amongst the best in the industry. FSS outperforms 85.83% of its industry peers.
The Return On Equity of FSS (18.51%) is better than 78.74% of its industry peers.
FSS has a Return On Invested Capital of 14.39%. This is amongst the best in the industry. FSS outperforms 84.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FSS is in line with the industry average of 11.19%.
The 3 year average ROIC (10.09%) for FSS is below the current ROIC(14.39%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 18.51% | ||
| ROIC | 14.39% |
ROA(3y)8.33%
ROA(5y)8.45%
ROE(3y)14.18%
ROE(5y)14.63%
ROIC(3y)10.09%
ROIC(5y)10.39%
1.3 Margins
With an excellent Profit Margin value of 11.57%, FSS belongs to the best of the industry, outperforming 80.31% of the companies in the same industry.
FSS's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 14.97%, FSS is doing good in the industry, outperforming 73.23% 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 (28.28%) which is in line with its industry peers.
In the last couple of years the Gross Margin of FSS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.97% | ||
| PM (TTM) | 11.57% | ||
| GM | 28.28% |
OM growth 3Y3.08%
OM growth 5Y2.95%
PM growth 3Y2.41%
PM growth 5Y1.15%
GM growth 3Y0.22%
GM growth 5Y0.19%
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 more shares outstanding
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 8.85. This indicates that FSS is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.85, FSS belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
The Debt to FCF ratio of FSS is 1.14, which is an excellent value as it means it would take FSS, only 1.14 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.14, FSS belongs to the best of the industry, outperforming 88.19% of the companies in the same industry.
FSS has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, FSS is in the better half of the industry, outperforming 71.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 8.85 |
ROIC/WACC1.48
WACC9.71%
2.3 Liquidity
A Current Ratio of 2.83 indicates that FSS has no problem at all paying its short term obligations.
FSS has a better Current ratio (2.83) than 73.23% of its industry peers.
FSS has a Quick Ratio of 1.36. 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 (1.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.20% over the past year.
The Earnings Per Share has been growing by 12.53% 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 10.33%.
The Revenue has been growing by 9.60% on average over the past years. This is quite good.
EPS 1Y (TTM)33.2%
EPS 3Y15.6%
EPS 5Y12.53%
EPS Q2Q%23.94%
Revenue 1Y (TTM)10.33%
Revenue growth 3Y15.06%
Revenue growth 5Y9.6%
Sales Q2Q%6.23%
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 17.42% yearly.
FSS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y31.09%
EPS Next 2Y20.91%
EPS Next 3Y17.42%
EPS Next 5YN/A
Revenue Next Year9.88%
Revenue Next 2Y8.58%
Revenue Next 3Y8.02%
Revenue Next 5Y7.8%
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 30.82 indicates a quite expensive valuation of FSS.
62.99% of the companies in the same industry are cheaper than FSS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.51, FSS is valued at the same level.
A Price/Forward Earnings ratio of 26.23 indicates a quite expensive valuation of FSS.
FSS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of FSS to the average of the S&P500 Index (93.88), we can say FSS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 26.23 |
4.2 Price Multiples
FSS's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as FSS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.77 | ||
| EV/EBITDA | 18.08 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 17.42% in the coming years.
PEG (NY)0.99
PEG (5Y)2.46
EPS Next 2Y20.91%
EPS Next 3Y17.42%
5. Dividend
5.1 Amount
FSS has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 1.61, FSS has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, FSS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of FSS has a limited annual growth rate of 4.68%.
FSS has paid a dividend for at least 10 years, which is 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)4.68%
Div Incr Years2
Div Non Decr Years10
5.3 Sustainability
13.21% 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.
DP13.21%
EPS Next 2Y20.91%
EPS Next 3Y17.42%
FEDERAL SIGNAL CORP
NYSE:FSS (1/30/2025, 8:04:00 PM)
After market: 98.94 0 (0%)98.94
+1.47 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.58%
Inst Owner Change-0.89%
Ins Owners1.58%
Ins Owner Change-0.24%
Market Cap6.05B
Analysts76.36
Price Target98.94 (0%)
Short Float %4.25%
Short Ratio6.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.39
Dividend Growth(5Y)4.68%
DP13.21%
Div Incr Years2
Div Non Decr Years10
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.88%
Min EPS beat(2)4.26%
Max EPS beat(2)11.51%
EPS beat(4)4
Avg EPS beat(4)9.87%
Min EPS beat(4)4.26%
Max EPS beat(4)12.12%
EPS beat(8)8
Avg EPS beat(8)8.28%
EPS beat(12)11
Avg EPS beat(12)8.82%
EPS beat(16)15
Avg EPS beat(16)8.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.33%
Min Revenue beat(2)-2.52%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-2.52%
Max Revenue beat(4)3.59%
Revenue beat(8)5
Avg Revenue beat(8)1.1%
Revenue beat(12)6
Avg Revenue beat(12)0.68%
Revenue beat(16)8
Avg Revenue beat(16)0.47%
PT rev (1m)0%
PT rev (3m)-1.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.61%
EPS NY rev (1m)0%
EPS NY rev (3m)2.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.02%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.82 | ||
| Fwd PE | 26.23 | ||
| P/S | 3.29 | ||
| P/FCF | 29.77 | ||
| P/OCF | 24.77 | ||
| P/B | 5.26 | ||
| P/tB | 12.58 | ||
| EV/EBITDA | 18.08 |
EPS(TTM)3.21
EY3.24%
EPS(NY)3.77
Fwd EY3.81%
FCF(TTM)3.32
FCFY3.36%
OCF(TTM)3.99
OCFY4.04%
SpS30.08
BVpS18.81
TBVpS7.87
PEG (NY)0.99
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.27% | ||
| ROE | 18.51% | ||
| ROCE | 18.29% | ||
| ROIC | 14.39% | ||
| ROICexc | 15.13% | ||
| ROICexgc | 28.41% | ||
| OM | 14.97% | ||
| PM (TTM) | 11.57% | ||
| GM | 28.28% | ||
| FCFM | 11.05% |
ROA(3y)8.33%
ROA(5y)8.45%
ROE(3y)14.18%
ROE(5y)14.63%
ROIC(3y)10.09%
ROIC(5y)10.39%
ROICexc(3y)10.49%
ROICexc(5y)10.88%
ROICexgc(3y)21.77%
ROICexgc(5y)23.56%
ROCE(3y)12.82%
ROCE(5y)13.21%
ROICexcg growth 3Y1.71%
ROICexcg growth 5Y-3.71%
ROICexc growth 3Y6.19%
ROICexc growth 5Y2.1%
OM growth 3Y3.08%
OM growth 5Y2.95%
PM growth 3Y2.41%
PM growth 5Y1.15%
GM growth 3Y0.22%
GM growth 5Y0.19%
F-Score8
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 65.08% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 72.2% | ||
| Profit Quality | 95.49% | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 8.85 |
F-Score8
WACC9.71%
ROIC/WACC1.48
Cap/Depr(3y)73.75%
Cap/Depr(5y)74.57%
Cap/Sales(3y)2.85%
Cap/Sales(5y)2.81%
Profit Quality(3y)61.3%
Profit Quality(5y)71.4%
High Growth Momentum
Growth
EPS 1Y (TTM)33.2%
EPS 3Y15.6%
EPS 5Y12.53%
EPS Q2Q%23.94%
EPS Next Y31.09%
EPS Next 2Y20.91%
EPS Next 3Y17.42%
EPS Next 5YN/A
Revenue 1Y (TTM)10.33%
Revenue growth 3Y15.06%
Revenue growth 5Y9.6%
Sales Q2Q%6.23%
Revenue Next Year9.88%
Revenue Next 2Y8.58%
Revenue Next 3Y8.02%
Revenue Next 5Y7.8%
EBIT growth 1Y30.69%
EBIT growth 3Y18.6%
EBIT growth 5Y12.83%
EBIT Next Year58.3%
EBIT Next 3Y23.49%
EBIT Next 5YN/A
FCF growth 1Y2261.63%
FCF growth 3Y15.5%
FCF growth 5Y15.83%
OCF growth 1Y208.6%
OCF growth 3Y12.59%
OCF growth 5Y15.94%