Federal Signal is a designer and manufacturer of products and total solutions that serve municipal, governmental, industrial and commercial customers. The Company operates three groups: Environmental Solutions, Safety and Security Systems and Fire Rescue. The company was founded in 1901 and is based in Oak Brook, Illinois.
FSS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Federal Signal Corp. To summarize, we found that Federal Signal Corp ranked in the 30th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for FSS, they are:
The company's balance sheet shows it gets 89% of its capital from equity, and 11% of its capital from debt. Its equity weight surpasses that of 73.38% of free cash flow generating stocks in the Industrials sector.
FSS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 31.66% of tickers in our DCF set.
Federal Signal Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 20.94. This coverage rate is greater than that of 86.92% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Federal Signal Corp? See CWST, IEX, NLSN, ROP, and SVT.
The Board of Directors of Federal Signal Corporation (NYSE: FSS) declared a quarterly cash dividend of eight cents ($0.08) per share on its common stock. The dividend is payable on December 1, 2020 to stockholders of record at the close of business on November 19, 2020.
Federal Signal (NYSE:FSS) and Li Auto (NASDAQ:LI) are both small-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends. Institutional and Insider Ownership 89.6% of Federal Signal shares are held by institutional investors. […]
* Presentation Times and Weblinks Released for Over 150 Presenting Companies * Day 1: Wednesday, September 23, 2020 * ALL INSTITUTIONAL AND RETAIL INVESTORS ARE WELCOMENEW YORK, NY / ACCESSWIRE / September 22, 2020 / Sidoti & Company, LLC has released the presentation schedule, with weblink click-throughs, for Wednesday, September 23, 2020, the first day of its two-day Fall 2020 Virtual Investor Conference.