(FSS) Federal Signal - Overview
Sector: Industrials | Industry: Pollution & Treatment Controls | Exchange: NYSE (USA) | Market Cap: 7.020m USD | Total Return: 16.4% in 12m
Industry Rotation: -8.1
Avg Turnover: 45.2M
EPS Trend: 92.3%
Qual. Beats: 4
Rev. Trend: 94.8%
Qual. Beats: 2
Warnings
Choppy
Tailwinds
Pead
Federal Signal Corporation (NYSE: FSS) is an Illinois-based manufacturer specializing in environmental solutions and safety systems for public and private infrastructure. The company operates through two primary segments: the Environmental Solutions Group, which produces specialty vehicles such as street sweepers and sewer cleaners, and the Safety and Security Systems Group, which provides emergency signaling and communication equipment.
The business model relies on a diverse portfolio of established brands, including Elgin and Vactor, distributed through a global network of dealers and direct sales channels. As a player in the heavy transportation equipment sector, the company benefits from long-term municipal contracts and federal infrastructure spending, which typically provide more stable demand compared to purely cyclical consumer industries. Beyond equipment manufacturing, Federal Signal generates recurring revenue through aftermarket parts, maintenance services, and equipment rentals.
For a detailed breakdown of the companys historical performance and valuation metrics, consider reviewing the latest data on ValueRay. Founded in 1901, the company serves a broad international market encompassing North America and Europe, positioning itself as a critical supplier for essential government and industrial services.
- Municipal infrastructure spending levels drive demand for street sweepers and sewer cleaners
- Infrastructure Investment and Jobs Act funding fuels long-term safe-digging equipment backlogs
- Raw material price volatility and supply chain stability impact manufacturing gross margins
- Strategic acquisitions in refuse and recycling sectors expand total addressable market share
- Public safety budget allocations influence emergency vehicle lighting and signaling system sales
| Net Income: 270.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 1.26 > 1.0 |
| NWC/Revenue: 24.28% < 20% (prev 20.33%; Δ 3.94% < -1%) |
| CFO/TA 0.13 > 3% & CFO 319.3m > Net Income 270.7m |
| Net Debt (511.4m) to EBITDA (460.1m): 1.11 < 3 |
| Current Ratio: 2.84 > 1.5 & < 3 |
| Outstanding Shares: last quarter (61.5m) vs 12m ago -0.49% < -2% |
| Gross Margin: 28.42% > 18% (prev 0.29%; Δ 2.81k% > 0.5%) |
| Asset Turnover: 108.1% > 50% (prev 101.1%; Δ 6.98% > 0%) |
| Interest Coverage Ratio: 20.81 > 6 (EBITDA TTM 460.1m / Interest Expense TTM 18.0m) |
| A: 0.23 (Total Current Assets 876.8m - Total Current Liabilities 308.2m) / Total Assets 2.45b |
| B: 0.56 (Retained Earnings 1.38b / Total Assets 2.45b) |
| C: 0.17 (EBIT TTM 374.5m / Avg Total Assets 2.17b) |
| D: 1.35 (Book Value of Equity 1.37b / Total Liabilities 1.02b) |
| Altman-Z'' Score: 5.92 = AAA |
| DSRI: 1.13 (Receivables 310.1m/223.2m, Revenue 2.34b/1.90b) |
| GMI: 1.01 (GM 28.42% / 28.83%) |
| AQI: 1.01 (AQ_t 0.51 / AQ_t-1 0.51) |
| SGI: 1.23 (Revenue 2.34b / 1.90b) |
| TATA: -0.02 (NI 270.7m - CFO 319.3m) / TA 2.45b) |
| Beneish M-Score: -2.75 (Cap -4..+1) = A |
Over the past week, the price has changed by -5.79%, over one month by -2.42%, over three months by -5.60% and over the past year by +16.43%.
- StrongBuy: 2
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 142.1 | 27.7% |
P/E Forward = 24.6305
P/S = 2.9971
P/B = 5.032
P/EG = 1.7609
Revenue TTM = 2.34b USD
EBIT TTM = 374.5m USD
EBITDA TTM = 460.1m USD
Long Term Debt = 546.7m USD (from longTermDebt, last quarter)
Short Term Debt = 11.1m USD (from shortTermDebt, last quarter)
Debt = 582.8m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 511.4m USD (from netDebt column, last quarter)
Enterprise Value = 7.53b USD (7.02b + Debt 582.8m - CCE 71.4m)
Interest Coverage Ratio = 20.81 (Ebit TTM 374.5m / Interest Expense TTM 18.0m)
EV/FCF = 25.92x (Enterprise Value 7.53b / FCF TTM 290.6m)
FCF Yield = 3.86% (FCF TTM 290.6m / Enterprise Value 7.53b)
FCF Margin = 12.41% (FCF TTM 290.6m / Revenue TTM 2.34b)
Net Margin = 11.56% (Net Income TTM 270.7m / Revenue TTM 2.34b)
Gross Margin = 28.42% ((Revenue TTM 2.34b - Cost of Revenue TTM 1.68b) / Revenue TTM)
Gross Margin QoQ = 27.96% (prev 27.50%)
Tobins Q-Ratio = 3.07 (Enterprise Value 7.53b / Total Assets 2.45b)
Interest Expense / Debt = 1.18% (Interest Expense 6.90m / Debt 582.8m)
Taxrate = 23.64% (21.8m / 92.2m)
NOPAT = 286.0m (EBIT 374.5m * (1 - 23.64%))
Current Ratio = 2.84 (Total Current Assets 876.8m / Total Current Liabilities 308.2m)
Debt / Equity = 0.41 (Debt 582.8m / totalStockholderEquity, last quarter 1.43b)
Debt / EBITDA = 1.11 (Net Debt 511.4m / EBITDA 460.1m)
Debt / FCF = 1.76 (Net Debt 511.4m / FCF TTM 290.6m)
Total Stockholder Equity = 1.35b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.49% (Net Income 270.7m / Total Assets 2.45b)
RoE = 20.05% (Net Income TTM 270.7m / Total Stockholder Equity 1.35b)
RoCE = 19.74% (EBIT 374.5m / Capital Employed (Equity 1.35b + L.T.Debt 546.7m))
RoIC = 16.36% (NOPAT 286.0m / Invested Capital 1.75b)
WACC = 9.72% (E(7.02b)/V(7.60b) * Re(10.45%) + D(582.8m)/V(7.60b) * Rd(1.18%) * (1-Tc(0.24)))
Discount Rate = 10.45% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -18.40 | Cagr: -0.07%
[DCF] Terminal Value 76.19% ; FCFF base≈253.9m ; Y1≈313.2m ; Y5≈534.4m
[DCF] Fair Price = 102.5 (EV 6.76b - Net Debt 511.4m = Equity 6.25b / Shares 61.0m; r=9.72% [WACC]; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 92.32 | EPS CAGR: 23.79% | SUE: 4.0 | # QB: 4
Revenue Correlation: 94.83 | Revenue CAGR: 15.31% | SUE: 2.30 | # QB: 2
EPS current Quarter (2026-06-30): EPS=1.29 | Chg30d=-2.50% | Revisions=-20% | Analysts=7
EPS next Quarter (2026-09-30): EPS=1.27 | Chg30d=+0.00% | Revisions=+9% | Analysts=7
EPS current Year (2026-12-31): EPS=4.97 | Chg30d=+5.42% | Revisions=+64% | GrowthEPS=+17.5% | GrowthRev=+20.8%
EPS next Year (2027-12-31): EPS=5.54 | Chg30d=+3.33% | Revisions=+64% | GrowthEPS=+11.5% | GrowthRev=+6.3%
[Analyst] Revisions Ratio: +64%