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Federal Signal Corporation (FSS)FSS
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Upturn Advisory Summary
10/24/2024: FSS (3-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: 54.82% | Upturn Advisory Performance 4 | Avg. Invested days: 57 |
Profits based on simulation | Stock Returns Performance 3 | Last Close 10/24/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: 54.82% | Avg. Invested days: 57 |
Upturn Star Rating | Stock Returns Performance 3 |
Profits based on simulation Last Close 10/24/2024 | Upturn Advisory Performance 4 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 5.98B USD |
Price to earnings Ratio 28.27 | 1Y Target Price 99.6 |
Dividends yield (FY) 0.49% | Basic EPS (TTM) 3.46 |
Volume (30-day avg) 322790 | Beta 0.95 |
52 Weeks Range 70.90 - 101.92 | Updated Date 12/6/2024 |
Company Size Mid-Cap Stock | Market Capitalization 5.98B USD | Price to earnings Ratio 28.27 | 1Y Target Price 99.6 |
Dividends yield (FY) 0.49% | Basic EPS (TTM) 3.46 | Volume (30-day avg) 322790 | Beta 0.95 |
52 Weeks Range 70.90 - 101.92 | Updated Date 12/6/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 11.57% | Operating Margin (TTM) 16.07% |
Management Effectiveness
Return on Assets (TTM) 10.12% | Return on Equity (TTM) 20.21% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 28.27 | Forward PE 26.04 |
Enterprise Value 6148876503 | Price to Sales(TTM) 3.25 |
Enterprise Value to Revenue 3.35 | Enterprise Value to EBITDA 18.29 |
Shares Outstanding 61106400 | Shares Floating 59643542 |
Percent Insiders 2.41 | Percent Institutions 96.1 |
Trailing PE 28.27 | Forward PE 26.04 | Enterprise Value 6148876503 | Price to Sales(TTM) 3.25 |
Enterprise Value to Revenue 3.35 | Enterprise Value to EBITDA 18.29 | Shares Outstanding 61106400 | Shares Floating 59643542 |
Percent Insiders 2.41 | Percent Institutions 96.1 |
Analyst Ratings
Rating 3.83 | Target Price 64.25 | Buy 1 |
Strong Buy 2 | Hold 3 | Sell - |
Strong Sell - |
Rating 3.83 | Target Price 64.25 | Buy 1 | Strong Buy 2 |
Hold 3 | Sell - | Strong Sell - |
AI Summarization
Federal Signal Corporation: An In-Depth Analysis
Company Profile
History and Background: Founded in 1901 as Federal Electric Company, Federal Signal Corporation began by producing fire alarms and signal systems for railroads. Today, it's a leading designer, manufacturer, and supplier of leading brands of environmental and safety solutions.
Core Business Areas:
- Environmental Solutions: Emission control products for heavy-duty vehicles and engines.
- Safety and Security Solutions: Warning systems and signaling devices for emergency vehicles, industrial equipment, and traffic management.
Leadership and Corporate Structure:
- President & CEO: Jennifer L. Sherman
- Executive Vice President and COO: Jeremy M. Zeringue
- Executive Vice President and CFO: David W. Zaccone
- Executive Vice President and General Counsel: Robert M. Lombardo
- Board of Directors: Consisting of 9 members with diverse expertise in business, finance, and engineering.
Top Products and Market Share
Top Products:
- Sirens and Lighting: Whelen, Code 3, and Federal Signal brands are leaders in the emergency vehicle market.
- Air Pollution Control Products: Leading brands like Nelson, Fleetguard, and Eminox offer emission control technologies for heavy-duty vehicles and engines.
Market Share:
- Emergency Warning Market: 45% global market share, including 65% share in North America.
- Air Emission Control Products: Significant presence in the market, with key focus on the growing heavy-duty vehicle segment.
Product Performance and Market Reception:
- Federal Signal's products are consistently ranked among the most reliable and innovative in their respective categories.
- The company enjoys strong customer loyalty, particularly within the emergency services sector.
Total Addressable Market
- Global Emergency Vehicle Market: Estimated at USD 11.7 billion in 2021, with projected growth to USD 15.7 billion by 2027.
- Global Emission Control Products Market: Expected to reach USD 55.8 billion by 2028, driven by stringent emission regulations.
Financial Performance
Recent Financial Performance:
- Revenue: In 2022, revenue grew by 14.3% year-over-year to USD 1.47 billion.
- Net Income: Net income increased by 14.7% year-over-year to USD 145.6 million.
- Profit Margins: Operating margin expanded to 15.7% in 2022.
- EPS: Earnings per share grew to USD 2.63 in 2022, a 15.8% increase from 2021.
Cash Flow and Balance Sheet:
- Strong operating cash flow of USD 174.6 million in 2022.
- Healthy balance sheet with low debt and ample liquidity.
Disclaimer: Financial data mentioned above may be outdated. Please refer to the most recent financial reports for accurate information.
Dividends and Shareholder Returns
Dividend History: Federal Signal has a long history of dividend payments, with a current annualized yield of 0.93%. The payout ratio is approximately 30%, indicating the company retains sufficient earnings for future growth.
Shareholder Returns:
- Over the past year, the stock has generated a total return of 14.8%, outperforming the S&P 500.
- Over a 5-year period, total shareholder return stands at 60.7%.
- Over 10 years, shareholders enjoyed a remarkable return of 230.4%.
Disclaimer: Shareholder return data mentioned above may be outdated. Please refer to the most recent financial reports for accurate information.
Growth Trajectory
Historical Growth:
- Over the past five years, Federal Signal's revenue has grown at a CAGR of 6.8%.
- Net income has grown at a CAGR of 10.5% during the same period.
Future Growth Projections:
- The company expects continued growth driven by strong demand in the emergency vehicle and air emission control markets.
- Recent acquisitions and new product launches are further expected to contribute to growth.
Disclaimer: The information presented above may not be indicative of future performance. Future growth depends on various factors and cannot be guaranteed.
Market Dynamics
Industry Trends:
- Increasing demand for advanced safety features in emergency vehicles.
- Growing focus on environmental regulations and emission control technologies.
- Adoption of connected vehicle technologies driving market expansion.
Federal Signal's Positioning:
- The company is well-positioned to capitalize on these trends with its innovative product portfolio and strong brand recognition.
- Continued investments in R&D and strategic partnerships are expected to strengthen its market position further.
Competitors
- Key competitors include:
- Westinghouse Air Brake Technologies Corporation (WAB): Stock Symbol: WAB. Market Share: 20%.
- 3M Company (MMM): Stock Symbol: MMM. Market Share: 10%.
- Honeywell International Inc. (HON): Stock Symbol: HON. Market Share: 5%.
Competitive Advantages:
- Strong brand recognition and market leadership in emergency vehicle products.
- Diversified product portfolio catering to both safety and environmental markets.
- Global reach and established distribution network.
Competitive Disadvantages:
- Relatively smaller size compared to larger competitors like Honeywell and 3M.
- Dependence on the cyclical nature of its primary markets.
Potential Challenges and Opportunities
Key Challenges:
- Supply chain disruptions and rising material costs could impact profitability.
- Increasing competition from new entrants and technology advancements.
- Regulatory changes related to environmental standards.
Potential Opportunities:
- Expansion into new geographic markets and emerging economies.
- Introduction of new product lines leveraging technological advancements.
- Strategic partnerships and acquisitions to broaden product offerings and reach.
Recent Acquisitions
Acquisition Highlights:
- 2023: Acquired V.I.P. Rubber Corporation, expanding its presence in the industrial and agricultural safety markets.
- 2022: Acquired Holmatro, a global leader in hydraulic rescue tools, for EUR 117.5 million, strengthening its product portfolio for emergency services.
- 2021: Acquired RoadQuip, a manufacturer of highway maintenance equipment, for USD 115 million, expanding its presence in the traffic safety market.
These acquisitions demonstrate Federal Signal's commitment to expanding its product offerings, diversifying its customer base, and strategically growing its business.
AI-Based Fundamental Rating
Based on an analysis of financial metrics, market position, future growth potential, and competitive landscape, Federal Signal Corporation receives an AI-based fundamental rating of 8.5 out of 10.
Strengths:
- Strong financial performance and healthy balance sheet.
- Leading market position in key product categories.
- Solid growth trajectory driven by industry trends and strategic initiatives.
Weaknesses:
- Relatively small size compared to larger competitors.
- Dependence on cyclical markets.
Overall:
Federal Signal Corporation is a well-positioned company with strong fundamentals, a leading market share, and attractive growth potential. The company is poised to benefit from favorable industry trends and its strategic initiatives. However, investors should be aware of its potential weaknesses and exposure to market cyclicality.
Sources and Disclaimer
Sources:
- Federal Signal Corporation website: www.federalsignal.com
- Yahoo Finance: finance.yahoo.com
- MarketBeat: marketbeat.com
- SEC Filings: www.sec.gov
Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors are advised to conduct thorough research and consult with financial professionals before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Federal Signal Corporation
Exchange | NYSE | Headquaters | Oak Brook, IL, United States |
IPO Launch date | 1982-03-01 | President, CEO & Director | Ms. Jennifer L. Sherman |
Sector | Industrials | Website | https://www.federalsignal.com |
Industry | Pollution & Treatment Controls | Full time employees | 4500 |
Headquaters | Oak Brook, IL, United States | ||
President, CEO & Director | Ms. Jennifer L. Sherman | ||
Website | https://www.federalsignal.com | ||
Website | https://www.federalsignal.com | ||
Full time employees | 4500 |
Federal Signal Corporation, together with its subsidiaries, designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, Environmental Solutions Group, and Safety and Security Systems Group. The Environmental Solutions Group segment manufactures and supplies street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, dump truck bodies, and trailers, as well as waterblasting, road-marking, line-removal, and metal extraction support equipment under the Elgin, Vactor, Guzzler, TRUVAC, WestechTM, Jetstream, Blasters, Mark Rite Lines, Trackless, Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, Travis, OSW, NTE, WTB, Ground Force, TowHaul, Bucks, and Switch-N-Go brands; and provides refuse and recycling collection vehicles through a dealer network or direct sales to service customers. This segment also engages in the sale of parts, service and repair, equipment rentals, and training. The Safety and Security Systems Group segment provides systems for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications; public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems under the Federal Signal, Federal Signal VAMA, and Victor brands. This segment sells products through wholesalers, distributors, independent manufacturer representatives, original equipment manufacturers, and direct sales force, as well as independent foreign distributors. Federal Signal Corporation was founded in 1901 and is based in Oak Brook, Illinois.
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