Federal Signal
Market Cap
US$1.9b
Last Updated
2020/06/04 02:20 UTC
Data Sources
Company Financials +
Executive Summary
Federal Signal Corporation, together with its subsidiaries, designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with mediocre balance sheet.
Similar Companies
Share Price & News
How has Federal Signal's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FSS has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.1%
FSS
2.6%
US Machinery
2.4%
US Market
1 Year Return
21.8%
FSS
-0.4%
US Machinery
9.2%
US Market
Return vs Industry: FSS exceeded the US Machinery industry which returned -2.6% over the past year.
Return vs Market: FSS exceeded the US Market which returned 8.5% over the past year.
Shareholder returns
| FSS | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 2.6% | 2.4% |
| 30 Day | 16.4% | 14.9% | 10.2% |
| 90 Day | -4.4% | 1.3% | 3.4% |
| 1 Year | 23.1%21.8% | 1.5%-0.4% | 11.6%9.2% |
| 3 Year | 90.4%83.2% | 14.2%6.9% | 33.7%24.9% |
| 5 Year | 117.3%101.4% | 44.6%27.3% | 59.7%41.8% |
Price Volatility Vs. Market
How volatile is Federal Signal's share price compared to the market and industry in the last 5 years?
Simply Wall St News
10 hours ago | Simply Wall St
The Federal Signal (NYSE:FSS) Share Price Is Up 101% And Shareholders Are Boasting About It1 week ago | Simply Wall St
Federal Signal (NYSE:FSS) Seems To Use Debt Quite Sensibly2 weeks ago | Simply Wall St
How Does Investing In Federal Signal Corporation (NYSE:FSS) Impact The Volatility Of Your Portfolio?Valuation
Is Federal Signal undervalued compared to its fair value and its price relative to the market?
17.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FSS ($30.73) is trading below our estimate of fair value ($37.21)
Significantly Below Fair Value: FSS is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FSS is good value based on its PE Ratio (16.2x) compared to the Machinery industry average (20.3x).
PE vs Market: FSS is poor value based on its PE Ratio (16.2x) compared to the US market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: FSS is poor value based on its PEG Ratio (1.9x)
Price to Book Ratio
PB vs Industry: FSS is overvalued based on its PB Ratio (2.9x) compared to the US Machinery industry average (2.1x).
Next Steps
Future Growth
How is Federal Signal forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
8.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FSS's forecast earnings growth (8.7% per year) is above the savings rate (2.2%).
Earnings vs Market: FSS's earnings (8.7% per year) are forecast to grow slower than the US market (22.1% per year).
High Growth Earnings: FSS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FSS's revenue (6.5% per year) is forecast to grow slower than the US market (8.9% per year).
High Growth Revenue: FSS's revenue (6.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if FSS's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Federal Signal performed over the past 5 years?
16.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FSS has high quality earnings.
Growing Profit Margin: FSS's current net profit margins (9.3%) are higher than last year (8.8%).
Past Earnings Growth Analysis
Earnings Trend: FSS's earnings have grown by 16.3% per year over the past 5 years.
Accelerating Growth: FSS's earnings growth over the past year (16.2%) is below its 5-year average (16.3% per year).
Earnings vs Industry: FSS earnings growth over the past year (16.2%) exceeded the Machinery industry -5.7%.
Return on Equity
High ROE: FSS's Return on Equity (18%) is considered low.
Next Steps
Financial Health
How is Federal Signal's financial position?
Financial Position Analysis
Short Term Liabilities: FSS's short term assets ($422.9M) exceed its short term liabilities ($167.1M).
Long Term Liabilities: FSS's short term assets ($422.9M) do not cover its long term liabilities ($423.8M).
Debt to Equity History and Analysis
Debt Level: FSS's debt to equity ratio (44.2%) is considered high.
Reducing Debt: FSS's debt to equity ratio has increased from 14.1% to 44.2% over the past 5 years.
Debt Coverage: FSS's debt is well covered by operating cash flow (41.6%).
Interest Coverage: FSS's interest payments on its debt are well covered by EBIT (21x coverage).
Balance Sheet
Next Steps
Dividend
What is Federal Signal's current dividend yield, its reliability and sustainability?
1.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FSS's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: FSS's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (4.48%).
Stability and Growth of Payments
Stable Dividend: FSS's dividend payments have been volatile in the past 10 years.
Growing Dividend: FSS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (16.9%), FSS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Jennifer Sherman (54yo)
4.42yrs
Tenure
US$4,769,299
Compensation
Ms. Jennifer L. Sherman has been the Chief Executive Officer, President and Director of Federal Signal Corporation since January 1, 2016. Ms. Sherman served as the Chief Operating Officer of Federal Signal ...
CEO Compensation Analysis
Compensation vs Market: Jennifer's total compensation ($USD4.77M) is about average for companies of similar size in the US market ($USD4.77M).
Compensation vs Earnings: Jennifer's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.42yrs | US$4.77m | 0.61% $11.3m | |
| Senior VP & CFO | 3.25yrs | US$1.46m | 0.081% $1.5m | |
| Senior VP & COO | 2.42yrs | US$1.77m | 0.030% $552.2k | |
| VP, General Counsel & Secretary | 4.58yrs | US$962.20k | 0.098% $1.8m | |
| VP of Corporate Development & Treasurer | 5.17yrs | no data | 0.037% $679.4k | |
| VP & Corporate Controller | 2.08yrs | no data | 0.0087% $160.5k | |
| VP & GM of Elgin Sweeper Company | no data | US$546.55k | no data |
3.8yrs
Average Tenure
48.5yo
Average Age
Experienced Management: FSS's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4.42yrs | US$4.77m | 0.61% $11.3m | |
| Independent Director | 1.33yrs | US$164.00k | 0.014% $264.9k | |
| Independent Director | 6.33yrs | US$196.04k | 0.081% $1.5m | |
| Independent Director | 10.17yrs | US$180.00k | 0.084% $1.6m | |
| Non-Executive Chairman | 3.5yrs | US$241.50k | 0.37% $6.8m | |
| Lead Independent Director | 1.17yrs | US$201.81k | 0.13% $2.5m | |
| Independent Director | 9.17yrs | US$184.50k | 0.16% $3.0m |
4.4yrs
Average Tenure
67yo
Average Age
Experienced Board: FSS's board of directors are considered experienced (4.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FSS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Federal Signal Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Federal Signal Corporation
- Ticker: FSS
- Exchange: NYSE
- Founded: 1901
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Market Cap: US$1.851b
- Shares outstanding: 60.24m
- Website: https://www.federalsignal.com
Number of Employees
Location
- Federal Signal Corporation
- 1415 West 22nd Street
- Suite 1100
- Oak Brook
- Illinois
- 60523
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FSS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 1969 |
| FSG | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 1969 |
Biography
Federal Signal Corporation, together with its subsidiaries, designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, Environmental Solutions Group, and Safety and Security Systems Group. The Environmental Solutions Group segment offers a range of street sweeper vehicles, sewer cleaner, vacuum loader and safe-digging trucks, hydro-excavation trucks, water blasting equipment, dump truck bodies, and trailers under the Elgin, Vactor, Guzzler, Westech, TRUVAC, Jetstream, Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, and Travis brand names. It also offers refuse and recycling collection vehicles, camera systems, ice resurfacing equipment, and snow-removal equipment. In addition, this segment engages in the sale of parts, service and repair, equipment rental, and training activities. The Safety and Security Systems Group segment provides systems and products for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications. Its products include vehicle lightbars and sirens, industrial signaling equipment, public warning systems, general alarm systems, public address systems, and public safety software. This segment sells its products under the Federal Signal, Federal Signal VAMA, and Victor brand names. The company sells its products through wholesaler, distributor, independent manufacturer representative, original equipment manufacturer, and direct sales force, as well as independent foreign distributor. Federal Signal Corporation was founded in 1901 and is headquartered in Oak Brook, Illinois.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/04 02:20 |
| End of Day Share Price | 2020/06/03 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.