Federal Signal
Market Cap
US$2.0b
Last Updated
2019/10/23 23:34 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.
Snowflake
Fundamentals
Excellent balance sheet with proven track record.
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
Market Performance
7 Day Return
3.1%
FSS
3.3%
US Machinery
0.07%
US Market
1 Year Return
54.6%
FSS
15.1%
US Machinery
8.9%
US Market
Return vs Industry: FSS exceeded the US Machinery industry which returned 15.1% over the past year.
Return vs Market: FSS exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| FSS | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.1% | 3.3% | 0.07% |
| 30 Day | 4.4% | 3.5% | -0.3% |
| 90 Day | 19.0% | -0.5% | -1.6% |
| 1 Year | 56.6%54.6% | 17.5%15.1% | 11.3%8.9% |
| 3 Year | 186.3%174.1% | 55.1%45.1% | 46.3%36.8% |
| 5 Year | 160.5%141.1% | 56.6%37.5% | 62.1%44.3% |
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
6 days ago | Simply Wall St
Federal Signal (NYSE:FSS) Seems To Use Debt Quite Sensibly2 weeks ago | Simply Wall St
Did Federal Signal Corporation's (NYSE:FSS) Recent Earnings Growth Beat The Trend?3 weeks ago | Simply Wall St
Federal Signal Corporation (NYSE:FSS): What Does Its Beta Value Mean For Your Portfolio?Valuation
Is Federal Signal undervalued compared to its fair value and its price relative to the market?
11.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FSS ($33.49) is trading below our estimate of fair value ($37.69)
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 (19.3x) compared to the Machinery industry average (20.6x).
PE vs Market: FSS is poor value based on its PE Ratio (19.3x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: FSS is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: FSS is overvalued based on its PB Ratio (3.5x) compared to the US Machinery industry average (2.3x).
Next Steps
Future Growth
How is Federal Signal forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
7.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FSS's forecast earnings growth (7.6% per year) is above the savings rate (2.7%).
Earnings vs Market: FSS's earnings (7.6% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: FSS's earnings are forecast to grow, but not significantly.
Revenue vs Market: FSS's revenue (6.9% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: FSS's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FSS's Return on Equity is forecast to be low in 3 years time (16.5%).
Next Steps
Past Performance
How has Federal Signal performed over the past 5 years?
8.3%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: FSS's earnings have grown by 8.3% per year over the past 5 years.
Accelerating Growth: FSS's earnings growth over the past year (27.7%) exceeds its 5-year average (8.3% per year).
Earnings vs Industry: FSS earnings growth over the past year (27.7%) exceeded the Machinery industry 16.7%.
Return on Equity
High ROE: FSS's Return on Equity (18%) is considered low.
Return on Assets
ROA vs Industry: FSS has a higher Return on Assets than the Machinery industry average last year.
Return on Capital Employed
ROCE Improving: FSS has not improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is Federal Signal's financial position?
Financial Position Analysis
Short Term Liabilities: FSS's short term assets ($367.6M) exceeds its short term liabilities ($166.0M)
Long Term Liabilities: FSS's short term assets (367.6M) exceeds its long term liabilities (349.6M)
Debt to Equity History and Analysis
Debt Level: FSS's debt to equity ratio (36%) is considered satisfactory
Reducing Debt: FSS's debt to equity ratio has increased from 19.8% to 36% over the past 5 years.
Debt Coverage: FSS's debt is well covered by operating cash flow (38.7%).
Interest Coverage: FSS's interest payments on its debt are well covered by EBIT (16.6x coverage).
Balance Sheet
Inventory Level: FSS has a high level of physical assets or inventory.
Debt Coverage by Assets: FSS's debt is covered by short term assets (assets are 1.8x debt).
Next Steps
Dividend
What is Federal Signal's current dividend yield, its reliability and sustainability?
0.95%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: FSS's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: FSS's dividend (0.96%) is low compared to the top 25% of dividend payers in the US market (3.68%).
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 (18.4%), FSS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FSS's dividends in 3 years are forecast to be well covered by earnings (17.2% payout ratio).
Next Steps
Management
What is the CEO of Federal Signal's salary, the management and board of directors tenure and is there insider trading?
3.2yrs
Average management tenure
CEO
Jennifer Sherman (54yo)
3.8yrs
Tenure
US$4,428,346
Compensation
Ms. Jennifer L. Sherman has been the Chief Executive Officer, President and Director of Federal Signal Corporation since January 1, 2016. Ms. Sherman served as the Chief Operating Officer of Federal Signal ...
CEO Compensation Analysis
Compensation vs. Market: Jennifer's total compensation ($USD4.43M) is about average for companies of similar size in the US market ($USD4.07M).
Compensation vs Earnings: Jennifer's compensation has increased by more than 20% in the past year.
Management Age and Tenure
3.2yrs
Average Tenure
48.5yo
Average Age
Experienced Management: FSS's management team is considered experienced (3.2 years average tenure).
Board Age and Tenure
3.3yrs
Average Tenure
63.5yo
Average Age
Experienced Board: FSS's board of directors are considered experienced (3.3 years average tenure).
Insider Trading
Insider Buying: FSS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 10,000 |
| Max Price | US$29.50 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 47,734 |
| Max Price | US$30.37 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 60,000 |
| Max Price | US$24.87 |
| Entity | Individual |
| Role | Chairman of the Board Non-Executive Chairman |
| Shares | 55,000 |
| Max Price | US$23.14 |
Ownership Breakdown
Management Team
Mark Weber (61yo)
Senior VP & COO
- Tenure: 1.8yrs
- Compensation: US$1.56m
Jennifer Sherman (54yo)
President
- Tenure: 3.8yrs
- Compensation: US$4.43m
Ian Hudson (43yo)
Senior VP & CFO
- Tenure: 2.6yrs
- Compensation: US$1.32m
Mike Higgins
VP & GM of Elgin Sweeper Company
- Tenure: 0yrs
- Compensation: US$546.55k
Svetlana Vinokur (39yo)
VP of Corporate Development & Treasurer
- Tenure: 4.5yrs
Dan DuPré (62yo)
VP, General Counsel & Secretary
- Tenure: 3.9yrs
- Compensation: US$823.29k
Lauren Elting (37yo)
VP & Corporate Controller
- Tenure: 2.5yrs
Board Members
Gene Lowe (51yo)
Independent Director
- Tenure: 0.7yrs
John Workman (67yo)
Independent Director
- Tenure: 5.7yrs
- Compensation: US$190.03k
Richard Mudge (73yo)
Independent Director
- Tenure: 9.5yrs
- Compensation: US$178.03k
Dennis Martin (68yo)
Non-Executive Chairman
- Tenure: 2.8yrs
- Compensation: US$241.50k
Brenda Reichelderfer (60yo)
Lead Independent Director
- Tenure: 0.8yrs
- Compensation: US$187.00k
Jennifer Sherman (54yo)
President
- Tenure: 3.8yrs
- Compensation: US$4.43m
Pat Miller (51yo)
Independent Director
- Tenure: 0.8yrs
- Compensation: US$3.04k
Bill Owens (69yo)
Independent Director
- Tenure: 8.5yrs
- Compensation: US$182.03k
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$2.021b
- Shares outstanding: 60.35m
- 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 customer ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:34 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.