NYSE:FSS

Stock Analysis Report

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

-5.1%

FSS

-2.7%

US Machinery

-0.6%

US Market


1 Year Return

18.5%

FSS

-7.5%

US Machinery

0.6%

US Market

FSS outperformed the Machinery industry which returned -6.8% over the past year.

FSS outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

FSSIndustryMarket
7 Day-5.1%-2.7%-0.6%
30 Day5.5%5.6%2.2%
90 Day22.0%-1.9%1.1%
1 Year19.9%18.5%-5.6%-7.5%2.9%0.6%
3 Year151.3%140.5%48.0%38.4%44.6%35.2%
5 Year151.9%133.1%54.1%35.1%61.9%44.2%

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

3 weeks ago | Simply Wall St

Is Now An Opportune Moment To Examine Federal Signal Corporation (NYSE:FSS)?

Valuation

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

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Federal Signal's share price is below the future cash flow value, but not 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 Based on Earnings

Federal Signal is good value based on earnings compared to the US Machinery industry average.

Federal Signal is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Federal Signal is poor value based on expected growth next year.


Price Based on Value of Assets

Federal Signal is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

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

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Federal Signal's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).

Federal Signal's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).

Federal Signal's revenue growth is positive but not above the United States of America market average.

Federal Signal's earnings growth is positive but not above the United States of America market average.

Federal Signal's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Federal Signal will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Federal Signal's year on year earnings growth rate has been positive over the past 5 years.

Federal Signal's 1-year earnings growth exceeds its 5-year average (27.7% vs 8.3%)

Federal Signal's earnings growth has exceeded the US Machinery industry average in the past year (27.7% vs 18.7%).


Return on Equity

Federal Signal has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Federal Signal used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Federal Signal's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Federal Signal's financial position?


Financial Position Analysis

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 cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Federal Signal's level of debt (36%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (19.8% vs 36% today).

Debt is well covered by operating cash flow (38.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16.6x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.03%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Federal Signal's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Federal Signal's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Jennifer Sherman (54yo)

3.7yrs

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

Jennifer's remuneration is about average for companies of similar size in United States of America.

Jennifer's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

48.5yo

Average Age

The tenure for the Federal Signal management team is about average.


Board Age and Tenure

3.7yrs

Average Tenure

60yo

Average Age

The tenure for the Federal Signal board of directors is about average.


Insider Trading

Federal Signal individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$295,04208 Aug 19
Richard Mudge
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$29.50
SellUS$1,449,54805 Aug 19
Dennis Martin
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares47,734
Max PriceUS$30.37
SellUS$1,491,93007 Mar 19
Dennis Martin
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares60,000
Max PriceUS$24.87
SellUS$1,272,50213 Nov 18
Dennis Martin
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares55,000
Max PriceUS$23.14

Ownership Breakdown


Management Team

  • Mark Weber (61yo)

    Senior VP & COO

    • Tenure: 1.7yrs
    • Compensation: US$1.56m
  • Jennifer Sherman (54yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$4.43m
  • Ian Hudson (43yo)

    Senior VP & CFO

    • Tenure: 2.5yrs
    • 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: 4.4yrs
  • Dan DuPré (62yo)

    VP, General Counsel & Secretary

    • Tenure: 3.8yrs
    • Compensation: US$823.29k
  • Lauren Elting (37yo)

    VP & Corporate Controller

    • Tenure: 2.4yrs

Board Members

  • Gene Lowe (51yo)

    Director

    • Tenure: 0.6yrs
  • John Workman (67yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$190.03k
  • Richard Mudge (73yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$178.03k
  • Dennis Martin (68yo)

    Non-Executive Chairman

    • Tenure: 2.8yrs
    • Compensation: US$241.50k
  • Brenda Reichelderfer (60yo)

    Lead Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$187.00k
  • Jennifer Sherman (54yo)

    President

    • Tenure: 3.7yrs
    • Compensation: US$4.43m
  • Pat Miller (51yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$3.04k
  • Bill Owens (69yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$182.03k
  • Bonnie Lind (60yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: US$142.52k

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$1.913b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSSNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1969
FSGDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:38
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.