Federal Signal Valuation

FSS Stock  USD 114.20  2.25  2.01%   
At this time, the firm appears to be fairly valued. Federal Signal shows a prevailing Real Value of $116.04 per share. The current price of the firm is $114.2. Our model computes the value of Federal Signal from reviewing the firm fundamentals such as Current Valuation of 7.13 B, shares outstanding of 60.81 M, and Profit Margin of 0.11 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Federal Signal's valuation include:
Price Book
5.2541
Enterprise Value
7.1 B
Enterprise Value Ebitda
17.9357
Price Sales
3.3786
Forward PE
24.9377
Fairly Valued
Today
114.20
Please note that Federal Signal's price fluctuation is very steady at this time. Calculation of the real value of Federal Signal is based on 3 months time horizon. Increasing Federal Signal's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Federal stock is determined by what a typical buyer is willing to pay for full or partial control of Federal Signal. Since Federal Signal is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Federal Stock. However, Federal Signal's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  114.2 Real  116.04 Target  133.83 Hype  114.2 Naive  110.48
The intrinsic value of Federal Signal's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Federal Signal's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
114.08
Downside
116.04
Real Value
118.00
Upside
Estimating the potential upside or downside of Federal Signal helps investors to forecast how Federal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Federal Signal more accurately as focusing exclusively on Federal Signal's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.810.911.01
Details
Hype
Prediction
LowEstimatedHigh
112.24114.20116.16
Details
Potential
Annual Dividend
LowForecastedHigh
0.380.390.39
Details
6 Analysts
Consensus
LowTarget PriceHigh
121.79133.83148.55
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Federal Signal's intrinsic value based on its ongoing forecasts of Federal Signal's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Federal Signal's closest peers.

Federal Signal Cash

110 Million

Federal Revenue by Product

Federal Signal Total Value Analysis

Federal Signal is currently projected to have company total value of 7.13 B with market capitalization of 6.94 B, debt of 252.4 M, and cash on hands of 91.1 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Federal Signal fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
7.13 B
6.94 B
252.4 M
91.1 M

Federal Signal Investor Information

About 97.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.35. Federal Signal last dividend was issued on the 14th of November 2025. The entity had 4:3 split on the 2nd of March 1994. Federal Signal is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in February.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.07120.14
Way Down
Slightly volatile
Total Cash From Operating Activities279.3 M266 M
Sufficiently Up
Slightly volatile
Operating Income339.8 M323.6 M
Sufficiently Up
Slightly volatile

Federal Signal Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Federal Signal has an asset utilization ratio of 105.46 percent. This implies that the Company is making $1.05 for each dollar of assets. An increasing asset utilization means that Federal Signal is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Federal Signal Profitability Analysis

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
 
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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 Earnings per Share Projection vs Actual

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 EPS estimates against different timeframes. 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
 
Interest Hikes
Federal Signal is projected to generate 0.9067 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 Ownership Allocation

The majority of Federal Signal outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Federal Signal to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Federal Signal. Please pay attention to any change in the institutional holdings of Federal Signal as this could imply that something significant has changed or is about to change at the company.

Federal Signal Profitability Analysis

The company reported the last year's revenue of 1.86 B. Total Income to common stockholders was 216.3 M with profit before taxes, overhead, and interest of 594.5 M.

Federal Signal Past Distributions to stockholders

About Federal Signal Valuation

The stock valuation mechanism determines Federal Signal's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Federal Signal based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Federal Signal. We calculate exposure to Federal Signal's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Federal Signal's related companies.
Last ReportedProjected for Next Year
Gross Profit613 M643.6 M
Pretax Profit Margin 0.14  0.13 
Operating Profit Margin 0.14  0.07 
Net Profit Margin 0.10  0.11 
Gross Profit Margin 0.33  0.30 
Federal Signal's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Federal Signal's value is low or high relative to the company's performance and growth projections. Determining the market value of Federal Signal can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Federal Signal represents a small ownership stake in the entity. As a stockholder of Federal, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Federal Signal Dividends Analysis For Valuation

Dividend Payout Ratio is likely to gain to 0.16 in 2026, despite the fact that Dividends Paid is likely to grow to (25.1 M). . 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.
Last ReportedProjected for Next Year
Dividends Paid-26.4 M-25.1 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.14  0.16 
Dividend Paid And Capex Coverage Ratio 2.98  1.74 
There are various types of dividends Federal Signal can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Federal shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Federal Signal directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Federal pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Federal Signal by the value of the dividends paid out.

Federal Signal Growth Indicators

Investing in growth stocks can be very risky. If the company such as Federal Signal does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding61.7 M
Quarterly Earnings Growth Y O Y0.276
Forward Price Earnings24.9377

Federal Signal Current Valuation Indicators

Federal Signal's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Federal Signal's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Federal Signal, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Federal Signal's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Federal Signal's worth.

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.