| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 1/6 |
FSS Stock Overview
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
No risks detected for FSS from our risk checks.
Federal Signal Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$42.44 |
| 52 Week High | US$48.88 |
| 52 Week Low | US$31.86 |
| Beta | 0.96 |
| 1 Month Change | 14.06% |
| 3 Month Change | 26.69% |
| 1 Year Change | 7.15% |
| 3 Year Change | 46.35% |
| 5 Year Change | 131.91% |
| Change since IPO | 503.89% |
Recent News & Updates
Federal Signal (NYSE:FSS) Has A Pretty Healthy Balance Sheet
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...
Federal Signal Non-GAAP EPS of $0.53 beats by $0.06, revenue of $367M beats by $2.2M
Federal Signal press release (NYSE:FSS): Q2 Non-GAAP EPS of $0.53 beats by $0.06. Revenue of $367M (+9.7% Y/Y) beats by $2.2M. Orders of $413 million, up $53 million, or 15%, from last year Record backlog of $795 million, up $358 million, or 82%, from last year. Raises mid-point of 2022 adjusted EPS* outlook by establishing a new range of $1.85 to $2.00, updated from the previous range of $1.80 to $2.00.
Shareholder Returns
| FSS | US Machinery | US Market | |
|---|---|---|---|
| 7D | -0.4% | 1.4% | 1.4% |
| 1Y | 7.1% | -6.9% | -8.4% |
Return vs Industry: FSS exceeded the US Machinery industry which returned -6.9% over the past year.
Return vs Market: FSS exceeded the US Market which returned -8.4% over the past year.
Price Volatility
| FSS volatility | |
|---|---|
| FSS Average Weekly Movement | 3.9% |
| Machinery Industry Average Movement | 5.8% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: FSS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: FSS's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1901 | 3,900 | Jennifer Sherman | https://www.federalsignal.com |
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 Environmental Solutions Group, and Safety and Security Systems Group. The Environmental Solutions Group segment offers a range of street sweepers, safe-digging trucks ,sewer cleaners, industrial vacuum loaders, vacuum, and hydro-excavation trucks; road-marking, line-removal and waterblasting equipment, dump truck bodies, trailers, and metal extraction support equipment under the Elgin, Vactor, Guzzler, TRUVAC, Westech, Jetstream, Mark Rite Lines, Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, Travis, OSW, NTE, WTB, Ground Force, Bucks, and Switch-N-Go brand names.
Federal Signal Fundamentals Summary
| FSS fundamental statistics | |
|---|---|
| Market Cap | US$2.57b |
| Earnings (TTM) | US$102.70m |
| Revenue (TTM) | US$1.30b |
25.1x
P/E Ratio2.0x
P/S RatioIs FSS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| FSS income statement (TTM) | |
|---|---|
| Revenue | US$1.30b |
| Cost of Revenue | US$992.80m |
| Gross Profit | US$303.80m |
| Other Expenses | US$201.10m |
| Earnings | US$102.70m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.69 |
| Gross Margin | 23.43% |
| Net Profit Margin | 7.92% |
| Debt/Equity Ratio | 40.1% |
How did FSS perform over the long term?
See historical performance and comparisonDividends
0.8%
Current Dividend Yield21%
Payout RatioValuation
Is FSS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FSS?
Other financial metrics that can be useful for relative valuation.
| What is FSS's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$2.57b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.2x |
| Enterprise Value/EBITDA | 15.3x |
| PEG Ratio | 1.3x |
Price to Earnings Ratio vs Peers
How does FSS's PE Ratio compare to its peers?
| FSS PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 19.4x | ||
TEX Terex | 10.7x | 7.2% | US$2.5b |
ALSN Allison Transmission Holdings | 8x | 0.1% | US$3.8b |
ALG Alamo Group | 19.6x | 16.4% | US$1.6b |
TRN Trinity Industries | 39.1x | 78.5% | US$2.2b |
FSS Federal Signal | 25.1x | 19.5% | US$2.6b |
Price-To-Earnings vs Peers: FSS is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the peer average (19.4x).
Price to Earnings Ratio vs Industry
How does FSS's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: FSS is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the US Machinery industry average (22.5x)
Price to Earnings Ratio vs Fair Ratio
What is FSS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 25.1x |
| Fair PE Ratio | 20.6x |
Price-To-Earnings vs Fair Ratio: FSS is expensive based on its Price-To-Earnings Ratio (25.1x) compared to the estimated Fair Price-To-Earnings Ratio (20.6x).
Share Price vs Fair Value
What is the Fair Price of FSS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FSS ($42.44) is trading below our estimate of fair value ($82.55)
Significantly Below Fair Value: FSS is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is Federal Signal forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
19.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FSS's forecast earnings growth (19.5% per year) is above the savings rate (1.9%).
Earnings vs Market: FSS's earnings (19.5% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: FSS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FSS's revenue (7.7% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: FSS's revenue (7.7% 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
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Past Performance
How has Federal Signal performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
10.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FSS has high quality earnings.
Growing Profit Margin: FSS's current net profit margins (7.9%) are lower than last year (8.7%).
Past Earnings Growth Analysis
Earnings Trend: FSS's earnings have grown by 10.9% per year over the past 5 years.
Accelerating Growth: FSS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FSS had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Machinery industry average (9.4%).
Return on Equity
High ROE: FSS's Return on Equity (12.7%) is considered low.
Discover strong past performing companies
Financial Health
How is Federal Signal's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: FSS's short term assets ($479.9M) exceed its short term liabilities ($179.7M).
Long Term Liabilities: FSS's short term assets ($479.9M) exceed its long term liabilities ($455.0M).
Debt to Equity History and Analysis
Debt Level: FSS's net debt to equity ratio (36.3%) is considered satisfactory.
Reducing Debt: FSS's debt to equity ratio has reduced from 69.9% to 40.1% over the past 5 years.
Debt Coverage: FSS's debt is well covered by operating cash flow (26.2%).
Interest Coverage: FSS's interest payments on its debt are well covered by EBIT (24.7x coverage).
Balance Sheet
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Dividend
What is Federal Signal current dividend yield, its reliability and sustainability?
Dividend Score
1/6Dividend Score 1/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
0.85%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FSS's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: FSS's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (3.97%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, FSS has been paying a dividend for less than 10 years.
Growing Dividend: FSS's dividend payments have increased, but the company has only paid a dividend for 8 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (21.3%), FSS's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (142.7%), FSS's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
4.6yrs
Average management tenure
CEO
Jennifer Sherman (57 yo)
6.58yrs
Tenure
US$4,672,213
Compensation
Ms. Jennifer L. Sherman has been the Chief Executive Officer, President and Director of Federal Signal Corporation since January 1, 2016. Ms. Sherman served as the Chief Operating Officer of Federal Signal...
CEO Compensation Analysis
Compensation vs Market: Jennifer's total compensation ($USD4.67M) is about average for companies of similar size in the US market ($USD6.61M).
Compensation vs Earnings: Jennifer's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: FSS's management team is considered experienced (4.6 years average tenure).
Board Members
Experienced Board: FSS's board of directors are considered experienced (8.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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 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
- Implied Market Cap: US$2.573b
- Shares outstanding: 60.63m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/19 00:00 |
| End of Day Share Price | 2022/08/19 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
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.