Federal Signal Corporation

NYSE:FSS Stock Report

Market Cap: US$5.9b

Federal Signal Valuation

Is FSS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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.

Discounted Cash Flow
Simply Wall St
US$113.11
Fair Value
14.2% undervalued intrinsic discount
6
Number of Analysts

Below Fair Value: FSS ($97.1) is trading below our estimate of fair value ($113.11)

Significantly Below Fair Value: FSS is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FSS?

Key metric: As FSS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FSS. This is calculated by dividing FSS's market cap by their current earnings.
What is FSS's PE Ratio?
PE Ratio27.9x
EarningsUS$212.70m
Market CapUS$5.93b

Price to Earnings Ratio vs Peers

How does FSS's PE Ratio compare to its peers?

The above table shows the PE ratio for FSS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
OSK Oshkosh
10.3x7.1%US$7.0b
ALSN Allison Transmission Holdings
12.2x2.6%US$8.9b
TEX Terex
9x6.8%US$3.0b
ATMU Atmus Filtration Technologies
18.6x11.0%US$3.3b
FSS Federal Signal
27.9x8.4%US$5.9b

Price-To-Earnings vs Peers: FSS is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does FSS's PE Ratio compare vs other companies in the US Machinery Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AIRJ AirJoule Technologies
2xn/aUS$444.51m
CVGI Commercial Vehicle Group
2.4x-37.8%US$66.64m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
ZEVY Lightning eMotors
n/an/aUS$6.00
No more companies available in this PE range
FSS 27.9xIndustry Avg. 23.8xNo. of Companies13PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FSS is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the US Machinery industry average (23.8x).

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.

FSS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.9x
Fair PE Ratio20.4x

Price-To-Earnings vs Fair Ratio: FSS is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FSS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$97.10
US$102.17
+5.2%
11.2%US$115.00US$88.00n/a6
Feb ’26US$98.31
US$101.33
+3.1%
10.5%US$115.00US$88.00n/a6
Jan ’26US$92.39
US$101.33
+9.7%
10.5%US$115.00US$88.00n/a6
Dec ’25US$97.41
US$99.60
+2.2%
10.9%US$115.00US$88.00n/a5
Nov ’25US$81.84
US$100.40
+22.7%
10.2%US$115.00US$88.00n/a5
Oct ’25US$92.70
US$99.40
+7.2%
9.6%US$115.00US$88.00n/a5
Sep ’25US$94.49
US$99.40
+5.2%
9.6%US$115.00US$88.00n/a5
Aug ’25US$97.07
US$99.40
+2.4%
9.6%US$115.00US$88.00n/a5
Jul ’25US$82.35
US$87.60
+6.4%
10.0%US$100.00US$76.00n/a5
Jun ’25US$92.02
US$87.60
-4.8%
10.0%US$100.00US$76.00n/a5
May ’25US$80.34
US$84.00
+4.6%
8.5%US$95.00US$76.00n/a4
Apr ’25US$85.16
US$83.00
-2.5%
10.0%US$95.00US$72.00n/a4
Mar ’25US$80.80
US$78.00
-3.5%
6.3%US$85.00US$72.00n/a4
Feb ’25US$78.98
US$68.50
-13.3%
5.5%US$75.00US$66.00US$98.314
Jan ’25US$76.74
US$68.50
-10.7%
5.5%US$75.00US$66.00US$92.394
Dec ’24US$70.06
US$68.50
-2.2%
5.5%US$75.00US$66.00US$97.414
Nov ’24US$57.87
US$64.25
+11.0%
4.5%US$68.00US$61.00US$81.844
Oct ’24US$59.73
US$64.25
+7.6%
4.5%US$68.00US$61.00US$92.704
Sep ’24US$60.38
US$66.40
+10.0%
7.5%US$75.00US$61.00US$94.495
Aug ’24US$61.89
US$66.40
+7.3%
7.5%US$75.00US$61.00US$97.075
Jul ’24US$64.03
US$61.60
-3.8%
9.9%US$68.00US$54.00US$82.355
Jun ’24US$54.71
US$61.60
+12.6%
9.9%US$68.00US$54.00US$92.025
May ’24US$51.84
US$61.00
+17.7%
11.2%US$68.00US$52.00US$80.345
Apr ’24US$54.21
US$61.00
+12.5%
11.2%US$68.00US$52.00US$85.165
Mar ’24US$57.93
US$51.60
-10.9%
7.8%US$57.00US$45.00US$80.805
Feb ’24US$53.61
US$51.60
-3.7%
7.8%US$57.00US$45.00US$78.985
Analyst Price Target
Consensus Narrative from 6 Analysts
US$102.17
Fair Value
5.0% undervalued intrinsic discount
6
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/16 09:15
End of Day Share Price 2025/02/14 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Federal Signal Corporation is covered by 14 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Walter LiptakBarrington Research Associates, Inc.
Charles BradyBMO Capital Markets U.S. (Historical)
Christopher MooreCJS Securities, Inc.