Home Sectors Industrials Stock Highlights: Federal Signal Corporation (NYSE: FSS)

Stock Highlights: Federal Signal Corporation (NYSE: FSS)

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Federal Signal Corporation is in the industrials sector and trades as part of the industrial products industry. The company CEO is Jennifer L. Sherman. Federal Signal Corp designs and manufactures a suite of products and integrated solutions for municipality, industrial and others. The company operates in two segments namely Environmental Solutions Group and Safety and Security Systems Group.

Previous Intraday Trading Performance:

The FSS stock showed a previous change of -0.27% with an open at 25.52 and a close of 25.52. It reached an intraday high of 25.92 and a low of 25.21.

SeekingAlpha:  Federal Signal Corporation (FSS) CEO Jennifer Sherman on Q4 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $1.5b with 60.3m shares outstanding, of which the float is 57.1m shares. Trading volume reached 278,220 shares compared to its average volume of 341,159 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Federal Signal Corporation shares returned 3.70% and in the past 30 trading days it returned 18.42%. Over three months, it changed 30.76%. In one year it has changed 15.30% and within that year its 52-week high was 28.32 and its 52-week low was 18.59. FSS stock is 37.28% above its 52 Week Low.

Our calculations show a 200 day moving average of 23.51 and a 50 day moving average of 22.69. Currently FSS stock is trading 8.55% above its 200 day moving average.

SeekingAlpha:  Federal Signal Corporation (FSS) CEO Jennifer Sherman on Q4 2018 Results – Earnings Call Transcript

Earnings:

The last annual fiscal EPS for the company was reported at 1.54 that ended on 31st of December 2018, which according to the previous close, that is a PE of 16.57. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.32. The TTM EPS is 1.43, which comes to a TTM PE of 17.85. Historically, the PE high was 33.30 and the PE low was 4.60. If the stock reached its PE low, that would represent a price of 6.58, which is a decrease of -74.23%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.39
09-30-2018:  0.36
06-30-2018:  0.45
03-31-2018:  0.23

The dividend per share is currently 0.32, which is a dividend yield of 1.25%. Also, the payout ratio is 22.38%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 33.92, which means it is possibly undervalued and has a margin of safety of 24.76%

Indicators to Watch:

Based on the latest filings, there is 5.30% of insider ownership and 142.50% of institutional ownership. Short-interest is 711,362, which is 1.18% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.72. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.44

SeekingAlpha:  PDD, EXPR and ZTO among premarket losers

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 19.04%, return on assets is 9.32%, profit margin is 8.63%, price-to-sales is 1.42 and price-to-book is 2.91.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 3  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.