ScoreWhy is Federal Signal Corp. ?
1
High Management Efficiency with a high ROCE of 16.00%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.11 times
3
Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 16.00%
4
Positive results in Jun 25
- OPERATING CASH FLOW(Y) Highest at USD 255.8 MM
- INTEREST COVERAGE RATIO(Q) Highest at 3,473.53
- RAW MATERIAL COST(Y) Fallen by -1.96% (YoY)
5
With ROCE of 20.66%, it has a very expensive valuation with a 4.92 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 11.26%, its profits have risen by 18.4% ; the PEG ratio of the company is 1.7
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Federal Signal Corp. should be less than 10%
- Overall Portfolio exposure to Automobiles should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Federal Signal Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Federal Signal Corp.
11.26%
0.81
37.96%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.86%
EBIT Growth (5y)
17.09%
EBIT to Interest (avg)
20.92
Debt to EBITDA (avg)
1.11
Net Debt to Equity (avg)
0.19
Sales to Capital Employed (avg)
1.28
Tax Ratio
23.27%
Dividend Payout Ratio
13.69%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
16.00%
ROE (avg)
15.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
5.66
EV to EBIT
23.83
EV to EBITDA
19.33
EV to Capital Employed
4.92
EV to Sales
3.70
PEG Ratio
1.73
Dividend Yield
0.47%
ROCE (Latest)
20.66%
ROE (Latest)
17.95%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 255.8 MM
INTEREST COVERAGE RATIO(Q)
Highest at 3,473.53
RAW MATERIAL COST(Y)
Fallen by -1.96% (YoY
DIVIDEND PER SHARE(HY)
Highest at USD 8.74
NET SALES(Q)
Highest at USD 564.6 MM
OPERATING PROFIT(Q)
Highest at USD 118.1 MM
OPERATING PROFIT MARGIN(Q)
Highest at 20.92 %
PRE-TAX PROFIT(Q)
Highest at USD 93.9 MM
NET PROFIT(Q)
Highest at USD 71.78 MM
EPS(Q)
Highest at USD 1.16
-4What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 12.02%
INTEREST(Q)
At USD 3.4 MM has Grown at 13.33%
Here's what is working for Federal Signal Corp.
Operating Cash Flow
Highest at USD 255.8 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Highest at 3,473.53
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 564.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Net Sales
At USD 564.6 MM has Grown at 18.84%
over average net sales of the previous four periods of USD 475.1 MMMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 118.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 20.92 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 93.9 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 71.78 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.16
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend per share
Highest at USD 8.74
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -1.96% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 19.9 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Federal Signal Corp.
Interest
At USD 3.4 MM has Grown at 13.33%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Dividend Payout Ratio
Lowest at 12.02% and Fallen
In each year in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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