Federal Signal FSS
United StatesIndustrials · Farm & Heavy Construction MachineryUSD
145.62 USD (+27.3%)
8 analysts
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Federal Signal Corporation designs and manufactures equipment and solutions for public safety, waste management, and infrastructure maintenance, including emergency vehicles, street sweepers, and industrial cleaning equipment.
Key points
from its scores- ✓Very solid balance sheet7.8
- ✓Strong growth7.8
- ✕Poor share-price trend2.1
- ✕Little or no dividend3.5
- !Somewhat demanding valuation5.0
AI analysis
bottom line, main risk, context and newsSolid business quality and sustained growth justify the premium, but negative momentum and limited dividend yield suggest waiting for a better entry point.
Federal Signal presents a solid financial profile with a 21.68% ROIC, a 17.65% operating margin, and 20.70% earnings growth, supported by stable demand in its end markets. Valuation (24.66 P/E) is consistent with its quality, although negative momentum (-1.18) and a low dividend yield (0.52%) limit short-term appeal.
The main risk is dependence on municipal and state government spending on infrastructure and safety, which could be pressured in a higher-rate environment and fiscal constraints.
Context and risks
No recent relevant news and no material exposure to current macro factors. The rise in long-term US rates is a factor to watch for an industrial with moderate debt (ND/EBITDA 0.85), but its solid balance sheet and stable cash generation profile limit the impact. No specific regulatory, geopolitical, or business model risks are identified that are not already reflected in the quantitative metrics.
Is Federal Signal stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 24.7 | 25.4 | −3% |
| EV / EBITDA | 14.8 | 14.5 | +2% |
| Price / book | 4.6 | 4.1 | +14% |
| Price / sales | 2.9 | 2.1 | +39% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Industrials: 5.0).
Average analyst target: 145.62 USD, +27.3% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- P/E
- 24.7
- Forward P/E
- 19.8
- EV / EBITDA
- 14.8
- Price / book
- 4.6
- Price / sales
- 2.9
- PEG
- 1.48
- Market cap
- 7.0B USD
- Enterprise value
- 7.4B USD
Profitability
- ROE
- 20.6%
- ROA
- 11.8%
- ROIC (approx.)
- 21.7%
- Gross margin
- 29.2%
- Operating margin
- 17.7%
- Net margin
- 11.7%
- Free cash flow
- 194.7M USD
- FCF yield
- 2.8%
- Cash conversion
- 39%
Solvency
- Total debt
- 485.8M USD
- Net debt
- 423.0M USD
- Cash
- 62.8M USD
- EBITDA
- 499.8M USD
- Net debt / EBITDA
- 0.85
- Debt / equity
- 32.22
- Current ratio
- 2.74
- Quick ratio
- 1.12
Growth
- Revenue growth
- +18.7%
- Earnings growth
- +20.7%
- EPS (TTM)
- 4.64 USD
- EPS (forward)
- 5.78 USD
Dividend
- Dividend yield
- 0.5%
- Payout
- 12.5%
Risk and market
- Beta
- 1.23
- Analyst consensus
- none (8)
- Target price
- 145.62 USD
- 52-week range
- 101.19 – 134.51
Recent news
All FSS news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about Federal Signal
Is Federal Signal stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Industrials median (within 15%). Valuation score: 5.0 out of 10 (median for Industrials: 5.0). Average analyst target: 145.62 USD, +27.3% versus the price. This is not investment advice.
What score does Federal Signal get on MeridIAn Screener?
It scores 5.7 out of 10, rank 1,243 of 2,130 (better than 39% of the companies analysed). Its strongest category is Financial health (7.8) and its weakest, Momentum (2.1). Analysis of 08/10/2026.
What is Federal Signal's P/E ratio?
Its P/E is 24.7: the share price equals 24.7 times earnings per share over the last 12 months. The Industrials median is 25.4. Based on the earnings analysts expect, the forward P/E is 19.8.
How much is Federal Signal worth on the stock market?
Its market capitalisation is 7.0B USD and its enterprise value, debt included, is 7.4B USD.
How much debt does Federal Signal have?
Its net debt (debt minus cash) is 423.0M USD. That is 0.85 times its EBITDA; the Industrials median is 1.58.
Does Federal Signal pay a dividend?
Yes: its dividend yield is 0.52% and it pays out 12% of its earnings.
How has Federal Signal stock performed over the last year?
It has fallen 0.8% over the last year, excluding dividends. Over the last 52 weeks it has traded between 101.19 and 134.51 USD. Past performance does not guarantee future results.
What do analysts think of Federal Signal?
8 analysts cover it; their average recommendation is “none” and their average target is 145.62 USD (+27.3% versus the price). It is an estimate, not market data.