Federal Signal Corp

Consumer Discretionary
Auto Manufacturing
www.federalsignal.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $5.96B
PE 28
Debt $239.50M
Cash $73.70M
EV $6.12B
FCF $203.10M

Earnings

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Sales & Net Margins

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Earnings	$212.70M
EBIT	$274.40M
ROE	19%
ROA	16%
FCF	$203.10M
Equity	$1.15B
Growth Stability	69%
PE	28.01
PEG	1.86
PB	5.18
P/FCF	29.34
P/S	3.24
Price/Cash	0.01
Debt/Equity	0.21
Debt/FCF	1.18
Net Margins	12%
Gross Margins	28%
Op. Margins	15%
Earnings CAGR	22%
Sales Growth YoY	6%
Sales Growth QoQ	-3%
Sales CAGR	11%
FCF CAGR	9%
Equity CAGR	12%
Earnings Stability	0.54
Earnings Growth YoY	24%
Earnings Growth QoQ	-11%
Earnings CAGR 5Y	15%

Sales CAGR 5Y	11%
FCF CAGR 5Y	9%
Equity CAGR 5Y	13%
Earnings CAGR 3Y	18%
Sales CAGR 3Y	18%
FCF CAGR 3Y	175%
Equity CAGR 3Y	16%
Market Cap	$5.96B
Revenue	$1.84B
Dividend Yield	0%
Payout Ratio	13%
Assets	$1.73B
Total Debt	$239.50M
Cash	$73.70M
Shares Outstanding	60.92M
EV	6.12B
Earnings Score	82%
Moat Score	94%
Safety Score	92%
Final Score	89%
Working Capital	419.8M
Current Ratio	2.83
Gross Profit	$519.80M
Shares Growth 3y	0%
Equity Growth QoQ	5%
Equity Growth YoY	20%

Assets & ROA

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Stockholders Equity & ROE

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Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance waterblasting equipment, dump truck bodies and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.

SEC Filings

Direct access to Federal Signal Corp (FSS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Federal Signal Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Federal Signal Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 22%

Stability 54%

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Federal Signal Corp Discounted Cash Flow

Fully customizable DCF calculator online for Federal Signal Corp .

Years

Calculation mode

= $3.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$203M	$222M	$243M	$266M	$291M	$319M	$349M	$382M	$418M	$457M	$501M	$5B
DCF		$202M	$201M	$200M	$199M	$198M	$197M	$196M	$195M	$194M	$193M	$1.9B
Value	$3.9B

Competitiveness and MOAT

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.

Years	12/2014	07/2015	12/2015	08/2016	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	7%	-	8%	-	6%	7%	9%	9%	9%	8%	8%	9%	12%
ROA	-	-	15%	-	9%	7%	12%	13%	11%	10%	11%	14%	16%
ROE	-	-	16%	-	11%	13%	18%	17%	14%	13%	14%	16%	19%

Good Net Margins (11.97%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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.

Years	12/2014	07/2015	12/2015	08/2016	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	0.51	-	3.13	4.24	2.67	3.25	1.97	4.4	19.39	1.85	1.18
Debt over Equity	0.14	-	0.11	-	0.16	0.61	0.4	0.34	0.3	0.36	0.42	0.3	0.21
Growth Stability	-	-	-	-	69%	100%	100%	100%	100%	100%	100%	100%	69%

Good Debt/FCF ratio (1.18)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.21)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (69%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

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.

Years	12/2014	07/2015	12/2015	08/2016	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-	-	-	-	27%	21%	12%	-7%	7%	18%	20%	11%
Earnings YoY growth	-	-	-	-	-	41%	53%	15%	-11%	5%	20%	31%	15%
Equity YoY growth	-	-	-	-	-	16%	16%	21%	9%	12%	10%	16%	13%
FCF YoY growth	-	-	-	-	-	218%	20%	-14%	57%	-40%	-71%	773%	9%