# Federal Signal Corporation (FSS) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Industrials / Construction & Engineering. Price $119.28, market value $7.3 billion.

## Valuation
- **P/E (trailing): 25.7×** (5-yr avg 26.3×, 3-yr avg 27.6×). Federal Signal Corporation trades at 25.7× trailing earnings, close to its own five-year average of 26.3×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 20.6×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 1.42**. A PEG of 1.42 is in the range usually read as fairly priced for its growth.
- **Price / sales: 3.0×**. Each dollar of revenue is priced at 3.0×.
- **Price / book: 4.8×**. The shares trade at 4.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 14.9×**. Enterprise value is 14.9× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 4.7%** (5-yr avg 2.7%). Free cash flow equals 4.7% of the market value, above its five-year average of 2.7%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 3.9%**. The inverse of the P/E: 3.9% of the price is earned each year.

## Profitability
- **Gross margin: 29.2%**. Federal Signal Corporation keeps 29.2% of revenue after the direct cost of what it sells.
- **Operating margin: 16.2%**. 16.2% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 11.3%**. 11.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.8%**. 17.8% on shareholders' equity is solid.
- **Return on invested capital: 23.7%**. Return on all capital, debt included, is 23.7%: comfortably above what that capital costs.
- **Return on assets: 11.9%**. Each dollar of assets produces 11.9% of profit.

## Growth
- **Revenue growth (1 yr): 17.1%** (3-yr 15.0%/yr, 5-yr 14.0%/yr). Revenue grew 17.1% over the last year, against 14.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 14.6%** (3-yr 26.7%/yr, 5-yr 20.8%/yr). Earnings per share rose 14.6%, roughly in step with revenue.
- **Free-cash-flow growth (3 yr): 129.4%/yr**. Free cash flow has compounded at 129.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.00**. Debt is 0.00 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Federal Signal Corporation holds more cash than debt.
- **Altman Z-score: 6.51**. A Z-score of 6.51 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.50%** ($0.58 per share, trailing). Federal Signal Corporation yields 0.50%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 14%**. 14% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 11.8%/yr** (1-yr 16.7%). The dividend has compounded at 11.8% a year over five years, doubling roughly every 6 years at that pace.

## Analyst view
- **Analyst consensus: buy** (8 analysts). 8 analysts cover Federal Signal Corporation; the consensus is buy, with an average price target of $145.63 (+22% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -4.2%** (YTD 10.1%, 3-mo 12.0%). The shares are down 4.2% over twelve months including dividends.
- **From 52-week high: -11.3%** (17.9% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 1.21** (volatility 35%). Beta of 1.21 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FSS · Page: https://foliofundamentals.com/stocks/fss

Not investment advice.