Federal Signal Profitability Analysis

FSS Stock  USD 114.52  0.73  0.64%   
Taking into consideration Federal Signal's profitability measurements, Federal Signal's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Federal Signal's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
71.4 M
Current Value
68.1 M
Quarterly Volatility
23.6 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Federal Signal's Price To Sales Ratio is comparatively stable compared to the past year. Days Sales Outstanding is likely to gain to 58.74 in 2026, whereas Operating Cash Flow Sales Ratio is likely to drop 0.09 in 2026. At this time, Federal Signal's Net Income Per Share is comparatively stable compared to the past year. Income Quality is likely to gain to 1.29 in 2026, whereas Total Other Income Expense Net is likely to drop (16.5 M) in 2026. At this time, Federal Signal's Gross Profit is comparatively stable compared to the past year. Net Profit Margin is likely to gain to 0.11 in 2026, whereas Pretax Profit Margin is likely to drop 0.13 in 2026.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.30.33
Moderately Down
Pretty Stable
Operating Profit Margin0.07120.14
Way Down
Slightly volatile
For Federal Signal profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Federal Signal to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Federal Signal utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Federal Signal's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Federal Signal over time as well as its relative position and ranking within its peers.

Federal Signal's Revenue Breakdown by Earning Segment

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For more information on how to buy Federal Stock please use our How to Invest in Federal Signal guide.The next projected EPS of Federal Signal is estimated to be 0.905 with future projections ranging from a low of 0.81 to a high of 1.0. Federal Signal's most recent 12-month trailing earnings per share (EPS TTM) is at 3.82. Please be aware that the consensus of earnings estimates for Federal Signal is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
Federal Signal is projected to generate 0.905 in earnings per share on the 31st of March 2026. Federal Signal earnings estimates show analyst consensus about projected Federal Signal EPS (Earning Per Share). It derives the highest and the lowest estimates based on Federal Signal's historical volatility. Many public companies, such as Federal Signal, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Federal Signal Revenue Breakdown by Earning Segment

By analyzing Federal Signal's earnings estimates, investors can diagnose different trends across Federal Signal's analyst sentiment over time as well as compare current estimates against different timeframes.
Is Construction Machinery & Heavy Transportation Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Federal Signal. If investors know Federal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Federal Signal listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.276
Dividend Share
0.54
Earnings Share
3.82
Revenue Per Share
33.834
Quarterly Revenue Growth
0.17
The market value of Federal Signal is measured differently than its book value, which is the value of Federal that is recorded on the company's balance sheet. Investors also form their own opinion of Federal Signal's value that differs from its market value or its book value, called intrinsic value, which is Federal Signal's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Federal Signal's market value can be influenced by many factors that don't directly affect Federal Signal's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Federal Signal's value and its price as these two are different measures arrived at by different means. Investors typically determine if Federal Signal is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Federal Signal's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Federal Signal Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Federal Signal's current stock value. Our valuation model uses many indicators to compare Federal Signal value to that of its competitors to determine the firm's financial worth.
Federal Signal is rated # 5 in return on equity category among its peers. It is rated # 3 in return on asset category among its peers reporting about  0.59  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Federal Signal is roughly  1.71 . At this time, Federal Signal's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Federal Signal by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Federal Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Federal Signal

Return On Equity

 = 

Net Income

Total Equity

 = 
0.19
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Federal Signal

Return On Asset

 = 

Net Income

Total Assets

 = 
0.11
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Federal Return On Asset Comparison

Federal Signal is currently under evaluation in return on asset category among its peers.

Federal Signal Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Federal Signal, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Federal Signal will eventually generate negative long term returns. The profitability progress is the general direction of Federal Signal's change in net profit over the period of time. It can combine multiple indicators of Federal Signal, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-80.1 M-84.1 M
Operating Income323.6 M339.8 M
Income Before Tax303.5 M318.7 M
Total Other Income Expense Net-15.8 M-16.5 M
Net Income248.7 M261.2 M
Income Tax Expense54.7 M57.5 M
Net Income Applicable To Common Shares248.7 M261.2 M
Net Income From Continuing Ops248.7 M261.2 M
Non Operating Income Net Other460 K483 K
Interest Income14.4 MM
Net Interest Income-11.2 M-11.8 M
Change To Netincome5.3 M5.6 M
Net Income Per Share 3.20  3.36 
Income Quality 1.23  1.29 
Net Income Per E B T 0.74  0.52 

Federal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Federal Signal. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Federal Signal position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Federal Signal's important profitability drivers and their relationship over time.

Federal Signal Profitability Trends

Federal Signal profitability trend refers to the progression of profit or loss within a business. An upward trend means that Federal Signal's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Federal Signal's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Federal Signal Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Federal Signal different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Federal Signal in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Federal Signal's future profitability.

Federal Signal Earnings Estimation Breakdown

The calculation of Federal Signal's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Federal Signal is estimated to be 0.905 with the future projection ranging from a low of 0.81 to a high of 1.0. Please be aware that this consensus of annual earnings estimates for Federal Signal is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.81
Lowest
Expected EPS
0.905
1.00
Highest

Federal Signal Earnings Projection Consensus

Suppose the current estimates of Federal Signal's value are higher than the current market price of the Federal Signal stock. In this case, investors may conclude that Federal Signal is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Federal Signal's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of March 2026Current EPS (TTM)
690.19%
0.0
0.905
3.82

Federal Signal Earnings History

Earnings estimate consensus by Federal Signal analysts from Wall Street is used by the market to judge Federal Signal's stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only Federal Signal's upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.

Federal Signal Quarterly Gross Profit

157 Million

At this time, Federal Signal's Retained Earnings are comparatively stable compared to the past year. Retained Earnings Total Equity is likely to gain to about 944.5 M in 2026, whereas Earnings Yield is likely to drop 0.03 in 2026. Net Income Applicable To Common Shares is likely to gain to about 261.2 M in 2026, whereas Common Stock Shares Outstanding is likely to drop slightly above 57.9 M in 2026.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Federal Signal's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Hype
Prediction
LowEstimatedHigh
112.61114.54116.47
Details
Intrinsic
Valuation
LowRealHigh
103.07125.02126.95
Details
6 Analysts
Consensus
LowTargetHigh
121.79133.83148.55
Details
Earnings
Estimates (0)
LowProjected EPSHigh
0.810.911.00
Details
Note that many institutional investors and large investment bankers can move markets due to the volume of Federal assets they manage. They also follow analysts to some degree and often drive overall investor sentiments towards Federal Signal. With so many stockholders watching consensus numbers, the difference between actual and projected earnings is one of the most critical factors driving Federal Signal's stock price in the short term.

Federal Signal Earnings per Share Projection vs Actual

Actual Earning per Share of Federal Signal refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering Federal Signal predict the company's earnings will be in the future. The higher the earnings per share of Federal Signal, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.

Federal Signal Estimated Months Earnings per Share

For an investor who is primarily interested in generating an income out of investing in entities such as Federal Signal, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of Federal Signal should always be considered in relation to other companies to make a more educated investment decision.

Federal Quarterly Analyst Estimates and Surprise Metrics

Earnings surprises can significantly impact Federal Signal's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
null
nullnullnullnull
2025-10-30
2025-09-301.081.140.06
2025-07-23
2025-06-301.061.170.1110 
2025-04-28
2025-03-310.73140.760.0286
2025-02-25
2024-12-310.87140.87-0.0014
2024-10-31
2024-09-300.840.880.04
2024-07-25
2024-06-300.840.950.1113 
2024-04-30
2024-03-310.570.640.0712 
2024-02-27
2023-12-310.660.740.0812 
2023-11-02
2023-09-300.660.710.05
2023-07-27
2023-06-300.620.670.05
2023-05-02
2023-03-310.40.460.0615 
2023-03-01
2022-12-310.560.570.01
2022-11-03
2022-09-300.530.530.0
2022-07-27
2022-06-300.470.530.0612 
2022-05-02
2022-03-310.270.340.0725 
2022-03-01
2021-12-310.380.40.02
2021-11-09
2021-09-300.460.480.02
2021-07-29
2021-06-300.450.50.0511 
2021-05-04
2021-03-310.330.380.0515 
2021-02-25
2020-12-310.410.440.03
2020-10-29
2020-09-300.380.420.0410 
2020-07-29
2020-06-300.310.420.1135 
2020-04-29
2020-03-310.330.390.0618 
2020-02-27
2019-12-310.420.480.0614 
2019-10-31
2019-09-300.420.470.0511 
2019-07-31
2019-06-300.460.550.0919 
2019-05-02
2019-03-310.260.30.0415 
2019-02-28
2018-12-310.310.390.0825 
2018-11-06
2018-09-300.320.360.0412 
2018-08-07
2018-06-300.330.450.1236 
2018-05-08
2018-03-310.20.230.0315 
2018-02-28
2017-12-310.20.240.0420 
2017-11-02
2017-09-300.210.240.0314 
2017-08-08
2017-06-300.20.230.0315 
2017-04-27
2017-03-310.120.140.0216 
2017-02-28
2016-12-310.160.160.0
2016-11-01
2016-09-300.160.170.01
2016-07-28
2016-06-300.190.17-0.0210 
2016-05-03
2016-03-310.160.190.0318 
2016-02-29
2015-12-310.240.250.01
2015-11-03
2015-09-300.230.260.0313 
2015-07-28
2015-06-300.260.290.0311 
2015-04-30
2015-03-310.140.230.0964 
2015-03-02
2014-12-310.280.30.02
2014-11-05
2014-09-300.20.240.0420 
2014-07-29
2014-06-300.230.270.0417 
2014-05-01
2014-03-310.170.12-0.0529 
2014-03-05
2013-12-310.250.340.0936 
2013-11-06
2013-09-300.170.260.0952 
2013-08-09
2013-06-300.140.230.0964 
2013-05-06
2013-03-310.10.120.0220 
2013-03-15
2012-12-310.110.09-0.0218 
2012-11-09
2012-09-300.070.090.0228 
2012-08-03
2012-06-300.110.150.0436 
2012-05-04
2012-03-310.020.030.0150 
2012-03-14
2011-12-310.070.06-0.0114 
2011-11-01
2011-09-300.080.03-0.0562 
2011-08-04
2011-06-300.080.080.0
2011-04-28
2011-03-31-0.08-0.080.0
2011-03-16
2010-12-310.080.02-0.0675 
2010-11-03
2010-09-300.060.05-0.0116 
2010-07-30
2010-06-300.090.06-0.0333 
2010-04-30
2010-03-310.1-0.06-0.16160 
2010-02-23
2009-12-310.120.180.0650 
2009-11-03
2009-09-300.110.1-0.01
2009-07-30
2009-06-300.060.110.0583 
2009-05-01
2009-03-31-0.010.020.03300 
2009-02-26
2008-12-310.180.220.0422 
2008-10-30
2008-09-300.240.310.0729 
2008-07-25
2008-06-300.180.17-0.01
2008-05-02
2008-03-310.10.09-0.0110 
2008-02-27
2007-12-310.140.170.0321 
2007-10-25
2007-09-300.210.1-0.1152 
2007-07-26
2007-06-300.250.23-0.02
2007-04-26
2007-03-310.160.13-0.0318 
2007-02-22
2006-12-310.260.270.01
2006-10-27
2006-09-300.210.19-0.02
2006-07-28
2006-06-300.210.240.0314 
2006-04-27
2006-03-310.120.05-0.0758 
2006-02-21
2005-12-310.150.280.1386 
2005-10-28
2005-09-300.130.09-0.0430 
2005-08-05
2005-06-300.120.08-0.0433 
2005-05-06
2005-03-310.090.02-0.0777 
2005-02-14
2004-12-310.07-0.07-0.14200 
2004-10-26
2004-09-300.13-0.05-0.18138 
2004-07-27
2004-06-300.150.13-0.0213 
2004-04-20
2004-03-310.170.05-0.1270 
2004-01-29
2003-12-310.250.24-0.01
2003-10-22
2003-09-300.20.210.01
2003-07-22
2003-06-300.20.210.01
2003-04-22
2003-03-310.130.140.01
2003-01-29
2002-12-310.290.28-0.01
2002-10-22
2002-09-300.30.28-0.02
2002-07-19
2002-06-300.240.240.0
2002-04-16
2002-03-310.220.220.0
2002-01-29
2001-12-310.260.260.0
2001-10-16
2001-09-300.210.2-0.01
2001-07-18
2001-06-300.370.370.0
2001-04-17
2001-03-310.280.26-0.02
2001-01-25
2000-12-310.280.320.0414 
2000-10-16
2000-09-300.360.360.0
2000-07-19
2000-06-300.360.360.0
2000-04-17
2000-03-310.320.330.01
2000-01-27
1999-12-310.360.370.01
1999-10-14
1999-09-300.30.30.0
1999-07-15
1999-06-300.30.30.0
1999-04-15
1999-03-310.290.290.0
1999-01-27
1998-12-310.350.360.01
1998-10-15
1998-09-300.380.36-0.02
1998-07-16
1998-06-300.340.350.01
1998-04-15
1998-03-310.260.24-0.02
1998-01-27
1997-12-310.290.290.0
1997-10-14
1997-09-300.350.350.0
1997-07-15
1997-06-300.350.350.0
1997-04-16
1997-03-310.30.30.0
1997-01-27
1996-12-310.340.340.0
1996-10-17
1996-09-300.350.350.0
1996-07-18
1996-06-300.350.350.0
1996-04-17
1996-03-310.270.26-0.01

Use Federal Signal in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Federal Signal position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Federal Signal will appreciate offsetting losses from the drop in the long position's value.

Federal Signal Pair Trading

Federal Signal Pair Trading Analysis

The ability to find closely correlated positions to Federal Signal could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Federal Signal when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Federal Signal - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Federal Signal to buy it.
The correlation of Federal Signal is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Federal Signal moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Federal Signal moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Federal Signal can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Federal Signal position

In addition to having Federal Signal in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Conservative Funds Thematic Idea Now

Conservative Funds
Conservative Funds Theme
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 41 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Conservative Funds Theme or any other thematic opportunities.
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Additional Tools for Federal Stock Analysis

When running Federal Signal's price analysis, check to measure Federal Signal's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Federal Signal is operating at the current time. Most of Federal Signal's value examination focuses on studying past and present price action to predict the probability of Federal Signal's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Federal Signal's price. Additionally, you may evaluate how the addition of Federal Signal to your portfolios can decrease your overall portfolio volatility.