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FSS

Federal SignalNYSE:FSS Stock Report

Market Cap

US$2.7b

7D

3.2%

1Y

37.8%

Updated

07 Dec, 2021

Data

Company Financials +
FSS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends2/6

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.

Federal Signal Competitors

Oshkosh

NYSE:OSK

US$7.6b

Terex

NYSE:TEX

US$3.0b

Alamo Group

NYSE:ALG

US$1.8b

Shyft Group

NasdaqGS:SHYF

US$1.7b

Price History & Performance

Summary of all time highs, changes and price drops for Federal Signal
Historical stock prices
Current Share PriceUS$44.90
52 Week HighUS$48.88
52 Week LowUS$31.70
Beta1.02
1 Month Change-3.02%
3 Month Change12.31%
1 Year Change37.77%
3 Year Change114.42%
5 Year Change184.54%
Change since IPO538.89%

Recent News & Updates

Nov 27
Is Now The Time To Put Federal Signal (NYSE:FSS) On Your Watchlist?

Is Now The Time To Put Federal Signal (NYSE:FSS) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Oct 30
Federal Signal (NYSE:FSS) Is Due To Pay A Dividend Of US$0.09

Federal Signal (NYSE:FSS) Is Due To Pay A Dividend Of US$0.09

The board of Federal Signal Corporation ( NYSE:FSS ) has announced that it will pay a dividend of US$0.09 per share on...

Shareholder Returns

FSSUS MachineryUS Market
7D3.2%-0.1%-2.6%
1Y37.8%17.7%17.8%

Return vs Industry: FSS exceeded the US Machinery industry which returned 14.9% over the past year.

Return vs Market: FSS exceeded the US Market which returned 16.5% over the past year.

Price Volatility

Is FSS's price volatile compared to industry and market?
FSS volatility
FSS Average Weekly Movement3.5%
Machinery Industry Average Movement4.8%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19013,500Jennifer Shermanhttps://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 two segments, Environmental Solutions Group, and Safety and Security Systems Group. The Environmental Solutions Group segment offers a range of street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, waterblasting equipment, road-marking and line-removal equipment, dump truck bodies, and trailers under the Elgin, Vactor, Guzzler, TRUVAC, Westech, Jetstream, Mark Rite Lines, Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, and Travis brand names.

Federal Signal Fundamentals Summary

How do Federal Signal's earnings and revenue compare to its market cap?
FSS fundamental statistics
Market CapUS$2.74b
Earnings (TTM)US$107.10m
Revenue (TTM)US$1.21b

25.6x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FSS income statement (TTM)
RevenueUS$1.21b
Cost of RevenueUS$909.40m
Gross ProfitUS$297.20m
ExpensesUS$190.10m
EarningsUS$107.10m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.75
Gross Margin24.63%
Net Profit Margin8.88%
Debt/Equity Ratio32.9%

How did FSS perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

20%

Payout Ratio

Valuation

Is Federal Signal undervalued compared to its fair value and its price relative to the market?

35.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSS ($44.9) is trading below our estimate of fair value ($69.96)

Significantly Below Fair Value: FSS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FSS is good value based on its PE Ratio (25.6x) compared to the US Machinery industry average (29.5x).

PE vs Market: FSS is poor value based on its PE Ratio (25.6x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: FSS is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: FSS is overvalued based on its PB Ratio (3.6x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Federal Signal forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSS's forecast earnings growth (19.6% per year) is above the savings rate (2%).

Earnings vs Market: FSS's earnings (19.6% per year) are forecast to grow faster than the US market (13.8% per year).

High Growth Earnings: FSS's earnings are forecast to grow, but not significantly.

Revenue vs Market: FSS's revenue (9.3% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: FSS's revenue (9.3% 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 (16.1%).


Past Performance

How has Federal Signal performed over the past 5 years?

18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSS has high quality earnings.

Growing Profit Margin: FSS's current net profit margins (8.9%) are higher than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: FSS's earnings have grown by 18.5% per year over the past 5 years.

Accelerating Growth: FSS's earnings growth over the past year (7.3%) is below its 5-year average (18.5% per year).

Earnings vs Industry: FSS earnings growth over the past year (7.3%) underperformed the Machinery industry 32%.


Return on Equity

High ROE: FSS's Return on Equity (14%) is considered low.


Financial Health

How is Federal Signal's financial position?


Financial Position Analysis

Short Term Liabilities: FSS's short term assets ($464.0M) exceed its short term liabilities ($157.5M).

Long Term Liabilities: FSS's short term assets ($464.0M) exceed its long term liabilities ($390.6M).


Debt to Equity History and Analysis

Debt Level: FSS's net debt to equity ratio (21.4%) is considered satisfactory.

Reducing Debt: FSS's debt to equity ratio has increased from 16.1% to 32.9% over the past 5 years.

Debt Coverage: FSS's debt is well covered by operating cash flow (44.3%).

Interest Coverage: FSS's interest payments on its debt are well covered by EBIT (30.6x coverage).


Balance Sheet


Dividend

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

0.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FSS's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: FSS's dividend (0.8%) is low compared to the top 25% of dividend payers in the US market (3.62%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.8%), 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 thoroughly covered by earnings (14.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Jennifer Sherman (56 yo)

5.92yrs

Tenure

US$4,691,321

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 ($USD4.69M) is about average for companies of similar size in the US market ($USD5.29M).

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 (4.8 years average tenure).


Board Members

Experienced Board: FSS's board of directors are considered experienced (7.8 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
  • Market Cap: US$2.742b
  • Shares outstanding: 61.07m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:18
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.