Latest Ratios: P/E Ratio 28.5x · EV/EBITDA 17.2x · ROE 19.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.0B | $6.7B | $5.7B | $4.7B | $2.8B | $2.7B | $2.0B | $2.0B | $1.2B | $1.2B | $955M |
| Enterprise Value | $7.5B | $7.2B | $5.9B | $5.0B | $3.2B | $3.0B | $2.2B | $2.2B | $1.4B | $1.5B | $969M |
| P/E Ratio → | 28.53 | 27.08 | 26.40 | 29.98 | 23.59 | 26.59 | 21.26 | 18.32 | 12.92 | 19.70 | 21.99 |
| P/S Ratio | 3.20 | 3.06 | 3.06 | 2.74 | 1.98 | 2.21 | 1.81 | 1.63 | 1.12 | 1.35 | 1.35 |
| P/B Ratio | 5.09 | 4.83 | 4.81 | 4.71 | 3.30 | 3.42 | 2.91 | 3.10 | 2.30 | 2.65 | 2.42 |
| P/FCF | 30.73 | 29.41 | 29.89 | 28.76 | 151.27 | 41.66 | 19.22 | 29.34 | 15.47 | 18.73 | 51.36 |
| P/OCF | 27.40 | 26.22 | 24.65 | 24.28 | 39.61 | 26.35 | 15.03 | 19.27 | 13.12 | 16.67 | 38.68 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.31 | 3.15 | 2.89 | 2.22 | 2.44 | 1.94 | 1.81 | 1.28 | 1.62 | 1.37 |
| EV / EBITDA | 17.17 | 16.48 | 16.91 | 17.48 | 14.78 | 16.32 | 12.48 | 11.69 | 8.81 | 14.03 | 12.12 |
| EV / EBIT | 21.04 | 21.29 | 21.21 | 22.36 | 19.76 | 24.21 | 16.87 | 15.05 | 11.50 | 21.28 | 16.50 |
| EV / FCF | — | 31.74 | 30.74 | 30.34 | 169.41 | 45.90 | 20.64 | 32.57 | 17.67 | 22.43 | 52.08 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.1% | 28.1% | 28.6% | 26.1% | 24.0% | 23.8% | 26.0% | 26.4% | 25.9% | 24.6% | 25.9% |
| Operating Margin | 16.4% | 16.4% | 15.1% | 13.0% | 11.2% | 10.8% | 11.6% | 12.0% | 11.2% | 8.2% | 8.6% |
| Net Profit Margin | 11.3% | 11.3% | 11.6% | 9.1% | 8.4% | 8.3% | 8.5% | 8.9% | 8.6% | 6.9% | 6.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.2% | 19.2% | 19.8% | 16.9% | 14.6% | 13.5% | 14.3% | 18.5% | 19.0% | 14.5% | 11.0% |
| ROA | 11.9% | 11.9% | 12.8% | 10.0% | 8.3% | 7.8% | 8.1% | 9.9% | 9.3% | 7.5% | 6.7% |
| ROIC | 16.4% | 16.4% | 16.2% | 13.7% | 10.7% | 10.3% | 11.5% | 14.1% | 13.0% | 10.0% | 11.7% |
| ROCE | 19.6% | 19.6% | 19.1% | 16.2% | 12.7% | 11.6% | 12.7% | 15.7% | 14.0% | 10.3% | 11.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.43 | 0.43 | 0.21 | 0.32 | 0.45 | 0.40 | 0.33 | 0.39 | 0.40 | 0.61 | 0.16 |
| Debt / EBITDA | 1.36 | 1.36 | 0.73 | 1.13 | 1.80 | 1.73 | 1.33 | 1.33 | 1.33 | 2.68 | 0.80 |
| Net Debt / Equity | — | 0.38 | 0.14 | 0.26 | 0.40 | 0.35 | 0.22 | 0.34 | 0.33 | 0.53 | 0.03 |
| Net Debt / EBITDA | 1.21 | 1.21 | 0.47 | 0.91 | 1.58 | 1.51 | 0.86 | 1.16 | 1.09 | 2.32 | 0.17 |
| Debt / FCF | — | 2.34 | 0.85 | 1.58 | 18.13 | 4.24 | 1.43 | 3.23 | 2.19 | 3.71 | 0.72 |
| Interest Coverage | 24.01 | 24.01 | 22.11 | 11.30 | 15.65 | 27.13 | 22.86 | 18.54 | 13.00 | 9.36 | 30.89 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.02 | 3.02 | 2.66 | 2.91 | 2.94 | 2.53 | 2.73 | 2.25 | 2.07 | 2.59 | 3.06 |
| Quick Ratio | 1.35 | 1.35 | 1.29 | 1.36 | 1.32 | 1.18 | 1.49 | 1.11 | 1.08 | 1.42 | 1.64 |
| Cash Ratio | 0.23 | 0.23 | 0.38 | 0.31 | 0.26 | 0.24 | 0.55 | 0.20 | 0.24 | 0.32 | 0.60 |
| Asset Turnover | — | 0.91 | 1.05 | 1.06 | 0.94 | 0.89 | 0.94 | 1.05 | 1.06 | 0.91 | 1.10 |
| Inventory Turnover | 3.32 | 3.32 | 4.01 | 4.19 | 3.72 | 4.04 | 4.53 | 4.91 | 5.13 | 4.94 | 4.37 |
| Days Sales Outstanding | — | 48.91 | 38.51 | 39.45 | 44.21 | 40.92 | 40.99 | 40.11 | 41.68 | 48.02 | 41.92 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.5% | 0.5% | 0.5% | 0.5% | 0.8% | 0.8% | 0.9% | 1.0% | 1.5% | 1.4% | 1.8% |
| Payout Ratio | 13.8% | 13.8% | 13.5% | 15.1% | 18.1% | 21.9% | 20.2% | 17.8% | 19.9% | 27.3% | 38.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 3.7% | 3.8% | 3.3% | 4.2% | 3.8% | 4.7% | 5.5% | 7.7% | 5.1% | 4.5% |
| FCF Yield | 3.3% | 3.4% | 3.3% | 3.5% | 0.7% | 2.4% | 5.2% | 3.4% | 6.5% | 5.3% | 1.9% |
| Buyback Yield | 0.6% | 0.6% | 0.2% | 0.3% | 0.6% | 0.6% | 1.1% | 0.2% | 0.1% | 0.2% | 4.2% |
| Total Shareholder Yield | 1.1% | 1.1% | 0.7% | 0.8% | 1.3% | 1.4% | 2.1% | 1.1% | 1.7% | 1.6% | 6.0% |
| Shares Outstanding | — | $62M | $62M | $62M | $61M | $62M | $62M | $62M | $61M | $60M | $61M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying FSS stock.
Federal Signal Corporation's current P/E ratio is 28.5x. The historical average is 20.1x. This places it at the 92th percentile of its historical range.
Federal Signal Corporation's current EV/EBITDA is 17.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.4x.
Federal Signal Corporation's return on equity (ROE) is 19.2%. The historical average is 10.0%.
Based on historical data, Federal Signal Corporation is trading at a P/E of 28.5x. This is at the 92th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Federal Signal Corporation's current dividend yield is 0.48% with a payout ratio of 13.8%.
Federal Signal Corporation has 28.1% gross margin and 16.4% operating margin. Operating margin between 10-20% is typical for established companies.
Federal Signal Corporation's Debt/EBITDA ratio is 1.4x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Acquisition integration and goodwill risk
Metrics are mathematically derived from official filings.
Margin Expansion Drives Profitability
According to the latest quarterly data, FSS's operating margin expanded to 17.6% in 2026Q2 from 14.9% a year earlier, reflecting strong pricing power and cost control.
The sequential improvement in gross margin from 28.0% in 2026Q1 to 30.4% in 2026Q2 suggests that recent price increases and operational efficiencies are taking hold. Net margin also rose to 12.8% in 2026Q2, up from 10.6% in 2024Q4, indicating that the company is converting revenue growth into bottom-line results at an accelerating rate. This margin expansion appears sustainable given the low capital intensity and the company's focus on higher-margin product lines.
ROIC Shows Cyclical Recovery
ROIC improved to 4.6% in 2026Q2 from 3.2% in 2024Q1, as reported in the financial statements, indicating a recovery from a cyclical trough.
The improvement in ROIC is driven by both margin expansion and asset efficiency, as asset turnover has remained stable around 0.27-0.30. However, ROIC remains below the cost of capital, which may indicate that recent acquisitions have not yet generated sufficient returns. Investors should monitor whether ROIC can continue to climb as integration benefits materialize and as the company scales its operations.
Working Capital Efficiency Improves
Cash conversion cycle shortened to 112 days in 2026Q2 from 110 days in 2024Q1, based on reported figures, reflecting modest improvements in inventory and receivables management.
DSO has remained relatively stable around 41 days, while DIO has increased slightly to 93 days, suggesting that inventory levels are building to support growth. DPO has been consistently low at around 22 days, indicating that FSS does not have significant supplier leverage. The overall CCC is high for an industrial company, but the trend is stable, and the company's strong cash conversion (OCF/NI > 1) suggests that working capital is not a drag on cash generation.
Leverage Normalizes After Acquisition
Debt-to-EBITDA fell to 4.11x in 2026Q2 from a peak of 5.02x in 2025Q4, as per the balance sheet, indicating that acquisition-related leverage is being managed down.
Interest coverage remains comfortable at 19.7x in 2026Q2, well above the 14.4x seen in 2026Q1, suggesting that debt service is not a concern. The temporary spike in leverage in 2025Q4 was likely due to acquisition financing, and the subsequent decline indicates that the company is generating sufficient cash flow to deleverage. However, with D/EBITDA still above 4x, investors should monitor whether the company continues to reduce leverage or embarks on further acquisitions.
Liquidity Remains Ample
Current ratio improved to 2.74 in 2026Q2 from 2.66 a year earlier, while quick ratio stood at 1.21, indicating a solid liquidity buffer.
The current ratio is well above 1, and the quick ratio of 1.21 suggests that even without selling inventory, FSS can cover its short-term obligations. The company's cash position dipped to $62.8M, but the strong operating cash flow and undrawn credit facilities likely provide additional flexibility. Under a severe stress scenario, the company's ability to generate cash from operations would be key, and the current ratio suggests it can withstand a temporary downturn.
P/E Misleads on Cyclical Earnings
The trailing P/E of 31.6x appears rich, but forward P/E of 24.7x and EV/EBITDA of 18.9x suggest the market is pricing in continued growth, which may be cyclical.
The most commonly misapplied ratio for FSS is the P/E ratio, because it fails to account for the cyclicality of municipal and infrastructure spending. A more appropriate metric is EV/EBITDA, which normalizes for capital structure and is less distorted by non-cash items. Additionally, investors should consider the PEG ratio of 1.52, which suggests that the stock is reasonably priced relative to expected growth, but the growth may be cyclical. Using a mid-cycle earnings estimate would provide a more accurate valuation.