Motor Vehicles & Passenger Car Bodies
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 manufactures and supplies street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, dump truck bodies, and trailers, as well as waterblasting, road-marking, line-removal, and metal extraction support equipment under the Elgin, Vactor, Guzzler, TRUVAC, WestechTM, Jetstream, Mark Rite Lines, Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, Travis, OSW, NTE, WTB, Ground Force, TowHaul, Bucks, and Switch-N-Go brands; and provides refuse and recycling collection vehicles, camera systems, ice resurfacing equipment, and snow-removal equipment through a dealer network or direct sales to service customers. This segment also engages in the sale of parts, service and repair, equipment rentals, and training. The Safety and Security Systems Group segment provides systems for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications; public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems under the Federal Signal, Federal Signal VAMA, and Victor brands. This segment sells products through wholesalers, distributors, independent manufacturer representatives, original equipment manufacturers, and direct sales force, as well as independent foreign distributors. Federal Signal Corporation was founded in 1901 and is based in Oak Brook, Illinois.
Discounted Cash Flow Valuation of Federal Signal Corp
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +8.26%.
The trend of Net Margin over the past 5 years is +0.18%.
The average ROA over the past 5 years is +10.39%.
The trend of ROA over the past 5 years is +0.28%.
The average ROE over the past 5 years is +14.77%.
The trend of ROE over the past 5 years is -0.44%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 3.64.
The trend of Debt/FCF over the past 5 years is 2.28.
Graham’s Stability measure stands at 0.46.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +9.81%.
The trend of Revenue growth rate over the past 5 years is +1.64%.
The Earnings CAGR over the past 5 years is +14.34%.
The trend of Earnings growth rate over the past 5 years is +5.81%.
The Equity CAGR over the past 5 years is +13.48%.
The trend of Equity growth rate over the past 5 years is +0.88%.
The FCF CAGR over the past 5 years is -22.09%.
The trend of FCF growth rate over the past 5 years is -8.31%.