FSS

Federal Signal Corporation

Fundamental data last updated:September 8, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Industrials

industry

Industrial - Pollution & Treatment Controls

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business 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. It operates through Environmental Solutions Group, and Safety and Security Systems Group. The Environmental Solutions Group segment offers a range of street sweepers, safe-digging trucks ,sewer cleaners, industrial vacuum loaders, vacuum, and hydro-excavation trucks; road-marking, line-removal and waterblasting equipment, dump truck bodies, trailers, and metal extraction support equipment under the Elgin, Vactor, Guzzler, TRUVAC, Westech, Jetstream, Mark Rite Lines, Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, Travis, OSW, NTE, WTB, Ground Force, Bucks, and Switch-N-Go brand names. It also offers refuse and recycling collection vehicles, camera systems, ice resurfacing equipment, and snow-removal equipment, as well as safety, and security systems. 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 community alerting, emergency vehicles, first responder interoperable communications, and industrial communications. Its products include vehicle lightbars and sirens, industrial signaling equipment, public warning systems, general alarm systems, and public address systems. This segment sells its products under the Federal Signal, Federal Signal VAMA, and Victor brand names. 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.

 


VALUATION

P/E

24.00

Market Cap ($M USD)

$6.51B

Forward P/E

16.37

PEG

0.35

PRICE TO SALES

2.78

PRICE TO BOOK

4.53

EV / EBITDA

15.26

5-Year Average P/E

Free Cash Flow Yield

4.46%

DCF Value

$120.20

Graham Number

$48.54

Price to FCF

22.40

EV to FCF

24.16

Earnings Yield

4.17%

FCF Yield

4.46%

DIVIDEND

Yield

0.54%

Annual Payout

$0.58

Payout Ratio

12.82%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.44

Next Year EPS Growth Estimate

$6.52

Next Year Revenue Growth Estimate

$3.10B

Return on Equity (ROE)

20.05%

FREE CASH FLOW

Operating Margin

16.69%

Debt-to-Equity

0.43

Piotroski F-Score

7

Altman Z-Score

6.35

Return on Invested Capital (ROIC)

18.22%

Current Ratio

2.84

Quick Ratio

1.29

Net Debt to EBITDA

1.11

Interest Coverage

21.72

Gross Profit margin

28.42%

FCF PER SHARE

$4.77

REVENUE PER SHARE

$38.46

Gainseekers Quantitative Analysis

Summary

FSS Federal Signal Corporation’s valuation presents a mixed picture. The stock has traded slightly below its DCF Value, suggesting a potential undervaluation. However, the Price/Book ratio of over 5.0 and a Price/Earnings ratio above 26 indicate a premium valuation. The Forward P/E of 18.15 suggests optimism about future earnings growth, supported by a robust Altman Z-score of 6.76, highlighting financial stability. Yet, the modest Earnings Yield of 3.76% raises questions about immediate income potential.

AI Exposure / Tech Reliance

Operating within the Industrials sector, FSS is strategically positioned to leverage AI and modern tech advancements in pollution and treatment controls. As environmental regulations tighten, the company's ability to integrate AI for efficiency and compliance could enhance its competitive edge. This adaptability is crucial for maintaining relevance in a rapidly evolving industry.

The Bull Case

For the discerning GARP investor, FSS offers compelling reasons to buy. With a strong ROIC of 18.22%, the company demonstrates exceptional capital efficiency, translating into robust returns. The Piotroski F-Score of 7 indicates solid financial health, while a healthy operating margin of 16.69% underscores pricing power. Despite a modest FCF Yield, the company's ability to generate consistent free cash flow per share suggests a resilient business model.

The Bear Case

Despite its strengths, FSS faces notable risks. The high Price/Sales ratio of 3.08 and Price/Book ratio over 5.0 suggest the stock is priced for perfection, leaving little room for error. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. While the debt levels are manageable, the low TTM Yield of 0.48% may deter income-focused investors seeking immediate returns.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$140.00

Institutional Ownership %

1-Year Beta

1.32

Insider Buying % (6 Mo)

Distance to 52-Week High

24.55%

Distance to 52-Week Low

13.26%

EARNINGS SURPRISE %

32.58%

50-DAY SMA

$113.60

200-DAY SMA

$115.91

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.