Federal Signal Corporation (FSS) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: Federal Signal Corporation

Market cap $7B · 52 weeks $105 – $134 (16 % below the high) · P/E 23.4× · 2027 expected P/E 19.4× · Dividend 0.52 % · 3 years rising · Next earnings February 24, 2027 · expected EPS $1.32 · Closing price, Oct 30 · accounts published Oct 29.

• Valuation: 54.8× average earnings (expensive).
• Business: ROIC 15 % (solid).
• Balance sheet: Net debt/EBITDA 1.3× (solid).
• Earnings: 7 of 8 (on track).

It trades at 23.4 times its last-12-month earnings and at 54.8 times its average earnings over ten years; above 25, the limit we take for the defensive investor. It is expensive.

These are its average accounting earnings over its last ten years, losses included.

What matters in industrials: 9 of 10 pass

• Capex / Revenue 1.3 %, fails.
• 5y revenue growth 13.8 %, passes.
• Operating margin 16.4 %, passes.
• ROIC 15.1 %, passes, near the threshold.
• FCF conversion 92.1 %, passes, near the threshold.
• Net debt / EBITDA 1.3×, passes.
• Altman Z-Score 6.4, passes.
• Piotroski F-Score 6 of 9, passes.
• P/E vs own 10y history 23.4×, passes.
• Cycle-adjusted EV/EBITDA 14.3×, passes.

Against its peers (reference peers) — Federal Signal Corporation: P/E 23.4×; EV/EBITDA 14.3×; ROIC 15.1 %; $6.9B. Oshkosh Corp (P/E 17.7×; EV/EBITDA 9.1×; ROIC 7.6 %; $8.6B), Terex Corporation (P/E 28.4×; EV/EBITDA 16.3×; ROIC 4.2 %; $6.4B), Custom Truck One Source, Inc. (P/E 82.0×; EV/EBITDA 10.0×; ROIC 6.1 %; $2.4B).

Expensive or cheap against its last ten years?

P/E at each close: today 23.4× · median 24.8× · minimum 12.1× · maximum 41.6× · cheap below 21.4× · expensive above 31.3×. It has been cheaper than today only 41% of the time over its last ten years.

Dividend

solid · Yield 0.52 % ($0.56 per share in 2025) · Years raising it 3 · 5-year growth +12 % a year · Free cash flow coverage 6.7× · With $1,000 invested today you'd collect $5.20 a year ($0.43 a month).