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Federal Signal

NYSE:FSS
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FSS
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

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. The last earnings update was 18 days ago. More info.


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  • Federal Signal has significant price volatility in the past 3 months.
FSS Share Price and Events
7 Day Returns
5.5%
NYSE:FSS
0.8%
US Machinery
2.4%
US Market
1 Year Returns
15.5%
NYSE:FSS
-8%
US Machinery
1.9%
US Market
FSS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Federal Signal (FSS) 5.5% 13.6% 23.5% 15.5% 96.5% 73.9%
US Machinery 0.8% -0.7% 13.4% -8% 46.5% 26.1%
US Market 2.4% 1.7% 11.9% 1.9% 38.2% 42.4%
1 Year Return vs Industry and Market
  • FSS outperformed the Machinery industry which returned -8% over the past year.
  • FSS outperformed the Market in United States of America which returned 1.9% over the past year.
Price Volatility
FSS
Industry
5yr Volatility vs Market

FSS Value

 Is Federal Signal undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Federal Signal to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Federal Signal.

NYSE:FSS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FSS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.059 (1 + (1- 21%) (13.57%))
1.115
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.115 * 5.96%)
9.38%

Discounted Cash Flow Calculation for NYSE:FSS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Federal Signal is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:FSS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.38%)
2019 77.50 Analyst x3 70.86
2020 127.73 Analyst x3 106.77
2021 136.40 Analyst x1 104.24
2022 145.80 Analyst x1 101.87
2023 153.00 Analyst x1 97.73
2024 159.42 Est @ 4.19% 93.10
2025 165.40 Est @ 3.76% 88.31
2026 171.11 Est @ 3.45% 83.53
2027 176.64 Est @ 3.23% 78.83
2028 182.08 Est @ 3.08% 74.30
Present value of next 10 years cash flows $899.53
NYSE:FSS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $182.08 × (1 + 2.73%) ÷ (9.38% – 2.73%)
$2,813.60
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,813.60 ÷ (1 + 9.38%)10
$1,148.04
NYSE:FSS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $899.53 + $1,148.04
$2,047.57
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,047.57 / 60.25
$33.98
NYSE:FSS Discount to Share Price
Calculation Result
Value per share (USD) From above. $33.98
Current discount Discount to share price of $25.70
= -1 x ($25.70 - $33.98) / $33.98
24.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Federal Signal is available for.
Intrinsic value
24%
Share price is $25.7 vs Future cash flow value of $33.98
Current Discount Checks
For Federal Signal to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Federal Signal's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Federal Signal's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Federal Signal's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Federal Signal's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FSS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.56
NYSE:FSS Share Price ** NYSE (2019-03-18) in USD $25.7
United States of America Machinery Industry PE Ratio Median Figure of 103 Publicly-Listed Machinery Companies 20.62x
United States of America Market PE Ratio Median Figure of 3,055 Publicly-Listed Companies 17.61x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Federal Signal.

NYSE:FSS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FSS Share Price ÷ EPS (both in USD)

= 25.7 ÷ 1.56

16.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federal Signal is good value based on earnings compared to the US Machinery industry average.
  • Federal Signal is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Federal Signal's expected growth come at a high price?
Raw Data
NYSE:FSS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
5.4%per year
United States of America Machinery Industry PEG Ratio Median Figure of 85 Publicly-Listed Machinery Companies 1.51x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:FSS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.43x ÷ 5.4%

3.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federal Signal is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Federal Signal's assets?
Raw Data
NYSE:FSS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $8.81
NYSE:FSS Share Price * NYSE (2019-03-18) in USD $25.7
United States of America Machinery Industry PB Ratio Median Figure of 129 Publicly-Listed Machinery Companies 2.41x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:FSS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FSS Share Price ÷ Book Value per Share (both in USD)

= 25.7 ÷ 8.81

2.92x

* Primary Listing of Federal Signal.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federal Signal is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess Federal Signal's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Federal Signal has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FSS Future Performance

 How is Federal Signal expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Federal Signal expected to grow at an attractive rate?
  • Federal Signal's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Federal Signal's earnings growth is positive but not above the United States of America market average.
  • Federal Signal's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FSS Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FSS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 5.4%
NYSE:FSS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 6.1%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 11%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FSS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FSS Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,507 1
2022-12-31 1,402 1
2021-12-31 1,304 1
2020-12-31 1,203 151 104 5
2019-12-31 1,151 107 94 5
NYSE:FSS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,090 93 94
2018-09-30 1,058 93 91
2018-06-30 1,037 65 82
2018-03-31 970 69 66
2017-12-31 899 73 61
2017-09-30 827 58 43
2017-06-30 765 65 38
2017-03-31 713 44 36
2016-12-31 708 25 39
2016-09-30 718 47 45
2016-06-30 711 75 53
2016-03-31 744 89 62

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Federal Signal's earnings are expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
  • Federal Signal's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FSS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Federal Signal Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FSS Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 1.70 1.85 1.63 4.00
2019-12-31 1.53 1.54 1.52 3.00
NYSE:FSS Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.56
2018-09-30 1.52
2018-06-30 1.36
2018-03-31 1.11
2017-12-31 1.01
2017-09-30 0.73
2017-06-30 0.64
2017-03-31 0.61
2016-12-31 0.65
2016-09-30 0.73
2016-06-30 0.86
2016-03-31 1.00

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Federal Signal is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Federal Signal's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Federal Signal has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FSS Past Performance

  How has Federal Signal performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Federal Signal's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Federal Signal's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Federal Signal's 1-year earnings growth exceeds its 5-year average (54.9% vs -11.5%)
  • Federal Signal's earnings growth has exceeded the US Machinery industry average in the past year (54.9% vs 35.4%).
Earnings and Revenue History
Federal Signal's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Federal Signal Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FSS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,089.50 93.70 146.50 13.00
2018-09-30 1,057.70 90.80 147.00 13.00
2018-06-30 1,037.00 81.60 147.30 13.00
2018-03-31 970.40 66.20 142.10 13.00
2017-12-31 898.50 60.50 131.00 13.00
2017-09-30 827.00 43.30 122.60 13.40
2017-06-30 765.00 38.30 115.20 13.40
2017-03-31 712.90 36.20 110.00 13.40
2016-12-31 707.90 39.40 109.20 13.40
2016-09-30 718.20 44.70 108.00 14.00
2016-06-30 711.20 53.00 106.40 14.00
2016-03-31 744.30 61.80 107.20 14.00
2015-12-31 768.00 65.80 108.00 14.00
2015-09-30 706.60 68.30 95.40 13.10
2015-06-30 746.20 67.70 99.30 13.10
2015-03-31 775.40 66.50 103.10 13.10
2014-12-31 779.10 59.70 106.90 13.10
2014-09-30 873.70 66.50 124.70 11.00
2014-06-30 863.70 68.10 123.00 11.00
2014-03-31 851.70 168.90 122.30 11.00
2013-12-31 712.90 152.50 102.70 11.00
2013-09-30 849.40 138.30 126.70 10.00
2013-06-30 825.10 126.00 128.20 10.00
2013-03-31 806.90 17.80 127.50 10.00
2012-12-31 803.20 22.00 126.90 10.00
2012-09-30 780.50 23.70 122.90 12.10
2012-06-30 763.30 22.50 117.70 12.10
2012-03-31 734.50 18.60 113.50 12.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Federal Signal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Federal Signal used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • Federal Signal's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Federal Signal's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Federal Signal has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FSS Health

 How is Federal Signal's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Federal Signal's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Federal Signal is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Federal Signal's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Federal Signal's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Federal Signal Company Filings, last reported 2 months ago.

NYSE:FSS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 530.10 210.10 37.40
2018-09-30 511.80 222.20 35.00
2018-06-30 492.40 248.10 36.00
2018-03-31 469.90 267.30 35.40
2017-12-31 457.40 277.70 37.50
2017-09-30 425.20 283.10 28.20
2017-06-30 412.40 289.20 37.00
2017-03-31 397.70 64.50 56.80
2016-12-31 394.10 64.00 50.70
2016-09-30 401.50 65.60 50.80
2016-06-30 396.00 66.90 38.70
2016-03-31 407.40 0.60 77.30
2015-12-31 405.60 44.10 76.00
2015-09-30 399.20 47.00 66.20
2015-06-30 388.00 48.60 35.90
2015-03-31 367.70 52.90 23.00
2014-12-31 371.60 50.20 24.10
2014-09-30 379.30 68.60 29.10
2014-06-30 375.50 75.50 24.20
2014-03-31 360.60 88.10 16.00
2013-12-31 351.00 92.10 23.80
2013-09-30 290.20 127.50 20.90
2013-06-30 267.70 144.20 13.10
2013-03-31 143.90 161.30 12.80
2012-12-31 146.90 157.80 29.70
2012-09-30 158.50 159.90 9.10
2012-06-30 168.70 236.70 10.30
2012-03-31 180.60 235.60 13.40
  • Federal Signal's level of debt (39.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.2% vs 39.6% today).
  • Debt is well covered by operating cash flow (44.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.2x coverage).
X
Financial health checks
We assess Federal Signal's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Federal Signal has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FSS Dividends

 What is Federal Signal's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.25%
Current annual income from Federal Signal dividends. Estimated to be 1.26% next year.
If you bought $2,000 of Federal Signal shares you are expected to receive $25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Federal Signal's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Federal Signal's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FSS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 78 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FSS Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.33 2.00
2019-12-31 0.32 2.00
NYSE:FSS Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-19 0.320 1.337
2018-10-30 0.320 1.474
2018-07-31 0.320 1.267
2018-05-01 0.320 1.352
2018-02-20 0.280 1.278
2017-10-24 0.280 1.373
2017-07-25 0.280 1.432
2017-04-21 0.280 1.686
2017-02-17 0.280 1.989
2016-10-25 0.280 1.855
2016-07-26 0.280 2.149
2016-04-26 0.280 2.127
2016-02-09 0.280 2.107
2015-10-27 0.280 1.807
2015-07-16 0.240 1.692
2015-04-28 0.240 1.584
2015-02-20 0.240 1.509
2014-10-21 0.120 0.792
2014-07-22 0.120 0.853
2014-04-23 0.120 0.831
2012-11-09 0.000 0.000
2012-08-03 0.000 0.000
2012-05-04 0.000 0.000
2012-03-14 0.000 0.000
2011-11-01 0.000 0.000
2011-08-05 0.000 0.000
2011-08-04 0.000 0.000
2011-04-29 0.000 0.000
2011-04-28 0.000 0.000
2010-10-26 0.240 3.692
2010-07-28 0.240 4.325
2010-04-27 0.240 3.678
2010-02-19 0.240 2.692
2009-10-27 0.240 3.845
2009-07-27 0.240 3.176
2009-04-22 0.240 2.984
2009-03-19 0.240 4.122

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Federal Signal's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.1x coverage).
X
Income/ dividend checks
We assess Federal Signal's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Federal Signal afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Federal Signal has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FSS Management

 What is the CEO of Federal Signal's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jennifer Sherman
COMPENSATION $3,434,972
AGE 53
TENURE AS CEO 3.2 years
CEO Bio

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 Corporation since April 29, 2014 until December 31, 2015 and also served as its Senior Vice President since October 2010 until December 31, 2015. Since joining Federal Signal Corporation in 1994 as corporate counsel, she has been responsible for litigation, securities compliance, corporate governance, intellectual property, patent law, employment, mergers and acquisitions. Ms. Sherman served as Vice President, General Counsel and Secretary of Federal Signal Corporation since 2004, Senior Vice President since 2008 and Chief Administrative Officer since October 2010. She also served as Deputy General Counsel and Assistant Secretary of Federal Signal Corporation. She has worked with the Board and executive leadership team to strengthen the Federal Signal Corporation’s strategic focus and growth, promote margin improvements and achieve record financial results. She negotiated a pivotal sale of underperforming assets and lowered Company debt levels. Ms. Sherman also has operational leadership experience within the Safety and Security Systems Group and the Corporation’s legal, human resources, information technology and government affairs activities. Ms. Sherman began her career as a Corporate Attorney with a practice focused in commercial contract disputes, labor law, bankruptcy, securities and collections. She has been an Independent Director of Franklin Electric Co., Inc. since January 1, 2015. She is involved in a number of charities in the Chicago area. Prior to joining Federal Signal Corporation, she worked for Revco Drug Stores and Barack Ferrazzano Kirschbaum Perlman & Nagelberg LLC. She serves on the Executive Boards of The Community House, a non-profit organization that provides social services for the greater Chicago area and the Center for Disability and Elder Law (CDEL). CDEL awarded Ms. Sherman with Outstanding Corporate Counsel awards in 2005 and 2006. In 2013, she was selected as one of the “Women Worth Watching” by the Diversity Journal. She is also a Fellow of the Kellogg School of Management at Northwestern University’s CEO Perspectives. Ms. Sherman earned a BBA in Business Finance from the University of Michigan, School of Business Administration and graduated cum laude with a JD from the University of Michigan Law School in 1989.

CEO Compensation
  • Jennifer's compensation has increased by more than 20% in the past year.
  • Jennifer's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Federal Signal management team in years:

3.2
Average Tenure
53
Average Age
  • The tenure for the Federal Signal management team is about average.
Management Team

Jennifer Sherman

TITLE
President
COMPENSATION
$3M
AGE
53
TENURE
3.2 yrs

Ian Hudson

TITLE
Senior VP & CFO
COMPENSATION
$864K
AGE
42
TENURE
2 yrs

Dan DuPré

TITLE
VP, General Counsel & Secretary
COMPENSATION
$613K
AGE
61
TENURE
3.3 yrs

Mark Weber

TITLE
Senior VP & COO
COMPENSATION
$1M
AGE
60
TENURE
1.2 yrs

Svetlana Vinokur

TITLE
VP of Corporate Development & Treasurer
AGE
38
TENURE
3.9 yrs

Julie Cook

TITLE
Vice President of Human Resources
COMPENSATION
$550K
AGE
56
TENURE
6.5 yrs

Lauren Elting

TITLE
VP & Corporate Controller
AGE
35
TENURE
1.9 yrs

Mike Higgins

TITLE
VP & GM of Elgin Sweeper Company
COMPENSATION
$547K
Board of Directors Tenure

Average tenure and age of the Federal Signal board of directors in years:

4.1
Average Tenure
62.5
Average Age
  • The tenure for the Federal Signal board of directors is about average.
Board of Directors

Dennis Martin

TITLE
Non-Executive Chairman
COMPENSATION
$221K
AGE
67
TENURE
2.3 yrs

Jennifer Sherman

TITLE
President
COMPENSATION
$3M
AGE
53
TENURE
3.2 yrs

Brenda Reichelderfer

TITLE
Independent Director
COMPENSATION
$150K
AGE
59
TENURE
12.4 yrs

Bill Owens

TITLE
Independent Director
COMPENSATION
$145K
AGE
68
TENURE
7.9 yrs

John Workman

TITLE
Independent Director
COMPENSATION
$148K
AGE
66
TENURE
5.1 yrs

James Goodwin

TITLE
Lead Independent Director
COMPENSATION
$198K
AGE
74
TENURE
3.2 yrs

Richard Mudge

TITLE
Independent Director
COMPENSATION
$142K
AGE
72
TENURE
8.9 yrs

Bonnie Lind

TITLE
Director
COMPENSATION
$143K
AGE
59
TENURE
5.1 yrs

Pat Miller

TITLE
Director
AGE
50
TENURE
0.3 yrs

Gene Lowe

TITLE
Director
AGE
50
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • Federal Signal insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. Mar 19 Sell Dennis Martin Individual 06. Mar 19 06. Mar 19 -60,000 $24.87 $-1,491,930
13. Nov 18 Sell Dennis Martin Individual 12. Nov 18 12. Nov 18 -55,000 $23.14 $-1,272,502
X
Management checks
We assess Federal Signal's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Federal Signal has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FSS News

Simply Wall St News

What You Must Know About Federal Signal Corporation's (NYSE:FSS) Beta Value

If you're interested in Federal Signal Corporation (NYSE:FSS), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Why We Think Federal Signal Corporation (NYSE:FSS) Could Be Worth Looking At

Help shape the future of investing tools and receive a $20 prize! … Federal Signal Corporation (NYSE:FSS) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects.

Simply Wall St -

How Should Investors React To Federal Signal Corporation's (NYSE:FSS) CEO Pay?

In 2016 Jennifer Sherman was appointed CEO of Federal Signal Corporation (NYSE:FSS). … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Jennifer Sherman's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Is Federal Signal Corporation's (NYSE:FSS) Share Price Doing?

Federal Signal Corporation (NYSE:FSS), which is in the machinery business, and is based in United States,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Federal Signal’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

Does Federal Signal Corporation (NYSE:FSS) Have A Good P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Federal Signal Corporation's (NYSE:FSS) P/E ratio and reflect on what it tells us about the company's share price. … Federal Signal has a price to earnings ratio of 14.44, based on the last twelve months.

Simply Wall St -

A Closer Look At Federal Signal Corporation's (NYSE:FSS) Impressive ROE

Our data shows Federal Signal has a return on equity of 18% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.18 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Much Are Federal Signal Corporation (NYSE:FSS) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Federal Signal Corporation (NYSE:FSS). … The Last 12 Months Of Insider Transactions At Federal Signal. … Dennis Martin was the only individual insider to sell shares in the last twelve months

Simply Wall St -

What Investors Should Know About Federal Signal Corporation's (NYSE:FSS) Financial Strength

Investors are always looking for growth in small-cap stocks like Federal Signal Corporation (NYSE:FSS), with a market cap of US$1.4b. … However, an important fact which most ignore is: how financially healthy is the business? … I believe these basic checks tell most of the story you need to know.

Simply Wall St -

Why Federal Signal Corporation (NYSE:FSS) Could Be Your Next Investment

Federal Signal Corporation (NYSE:FSS) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … that has been able to sustain great financial health over the past

Simply Wall St -

Does Federal Signal Corporation (NYSE:FSS) Have A Volatile Share Price?

Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

Simply Wall St -

FSS Company Info

Description

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 and vacuum loader trucks, hydro-excavation trucks, water blasting equipment, dump truck bodies, and trailers under the Elgin, Vactor, Guzzler, Westech, 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 campus and community alerting, emergency vehicles, first responder interoperable communications, and industrial communications, as well as command and municipal networked security. Its products include vehicle lightbars and sirens, public warning sirens, general alarm systems, public address systems, and public safety software. This segment sells its products under the Federal Signal, Federal Signal VAMA, and Victor brands. 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.

Details
Name: Federal Signal Corporation
FSS
Exchange: NYSE
Founded: 1901
$1,548,527,465
60,253,987
Website: http://www.federalsignal.com
Address: Federal Signal Corporation
1415 West 22nd Street,
Suite 1100,
Oak Brook,
Illinois, 60523,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FSS Common Stock New York Stock Exchange US USD 11. Feb 1969
DB FSG Common Stock Deutsche Boerse AG DE EUR 11. Feb 1969
Number of employees
Current staff
Staff numbers
3,300
Federal Signal employees.
Industry
Construction Machinery and Heavy Trucks
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 23:35
End of day share price update: 2019/03/18 00:00
Last estimates confirmation: 2019/03/13
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.