The historical rank and industry rank for Federal Signal's Gross Margin % or its related term are showing as below:
FSS'
s Gross Margin % Range Over the Past 10 Years
Min: 23.8 Med: 25.94 Max: 29.38
Current: 26.13
During the past 13 years, the highestGross Margin % of Federal Signal was 29.38%. The lowest was 23.80%. And the median was 25.94%.
FSS's Gross Margin % is ranked worse than 51.11% of 2937
companies
in the Industrial Products industry
Industry Median: 26.45
vs FSS: 26.13
Federal Signal had a gross margin of 26.63% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Federal Signal was -0.90% per year.
Federal Signal Gross Margin % Historical Data
The historical data trend for Federal Signal's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Federal Signal's Gross Margin %
For the Pollution & Treatment Controls subindustry, Federal Signal's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Federal Signal's Gross Margin % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Federal Signal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Federal Signal's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Federal Signal (NYSE:FSS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Federal Signal had a gross margin of 26.63% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Federal Signal Gross Margin % Related Terms
Thank you for viewing the detailed overview of Federal Signal's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Federal Signal (Federal Signal) Business Description
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates in the segments of Environmental Solutions Group and the Safety and Security Systems Group. The Environmental solutions group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance waterblasting equipment, dump truck bodies and trailers. The Safety and Security Systems Group offers comprehensive systems and products such as campus and community alerting, emergency vehicles, first responder interoperable communications, and others. The company generates a majority of its revenue from the Environmental Solutions Group segment.
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