NYSE
FSS
Last Price
US $128.49
KEY FIGURES
MKT CAP
$7.6B
EPS
TTM
$4.45
PEG
TTM
0.97x
P/E
TTM
28.11x
P/S
TTM
3.51x
YIELD
0.46%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
20.05%
Return on equity
ROIC: 13.83%
Valuation History
28.1X
Price to Earnings
EV/EBITDA: 17.8X
Cash flow
Profit margin
14.03%
(FY vs FY)
EBITDA Y/Y
19.07%
(FY vs FY)
Cash flow Y/Y
16.35%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $128.49
-55.26%
Default assumptions
EBITDA Multiple
Fair Value
Market $128.49
-69.29%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Federal Signal Corporation cash flow to debt ratio of 42.84% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Federal Signal Corporation's free cash flow has increased 19.09% from $190.70M last year to $227.10M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Federal Signal Corporation's debt to equity ratio is 0.41, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial risk - Healthy debt to equity ratio development.
Federal Signal Corporation's debt has increased relative to shareholder equity from 0.21 last year to 0.41 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Federal Signal Corporation has a net debt to EBITDA ratio of 1.27x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Federal Signal Corporation's interest coverage ratio of 21.72 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Federal Signal Corporation's profit margin has decreased (-0.54%) in the last year from 11.62% to 11.56%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Federal Signal Corporation's short-term assets of $853.80M exceed its short-term liabilities of $282.40M
Increasing performance - ROA.
Federal Signal Corporation's return on assets of 11.03% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Federal Signal Corporation's return on equity of 20.05%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Federal Signal Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Federal Signal Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Federal Signal Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Federal Signal Corporation has a free cash flow yield of 2.97%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Federal Signal Corporation's yearly earnings has increased 14.01% since last year from $216.30M to $246.60M, signaling increasing performance
Increasing performance - Healthy revenue growth.
Federal Signal Corporation's yearly revenue has increased 17.14% since last year from $1.86G to $2.18G, signaling increasing performance
Increasing performance - ROIC.
ROIC 13.83% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Federal Signal Corporation's 3-year revenue CAGR of 14.97% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Federal Signal Corporation had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Federal Signal Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Federal Signal Corporation is overvalued relative to its fair value price of 57.49 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Federal Signal Corporation has an earnings yield of 3.55%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Federal Signal Corporation is overvalued relative to its fair value price of 39.46 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Federal Signal Corporation has an EV/EBITDA ratio of 17.80x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Federal Signal Corporation has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Federal Signal Corporation has a price-to-book ratio of 5.32x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Federal Signal Corporation has a price-to-sales ratio of 3.27x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue