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Federal SignalFRA:FSG 99 Interest Coverage is 19.82 as of Jun. 2026, which is 4% below its 10-year median of 20.68. GuruFocus rates FRA:FSG with a GF Score™ of 99/100 and a GF Value™ of €98.00 (Fairly Valued). The stock has 1 warning sign investors should review. Among 169 Farm & Heavy Construction Machinery companies, Federal Signal ranks better than 65.68% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Federal Signal's
Operating Income
for the
three
months ended in Jun. 2026 was €103 Mil. Federal Signal's Interest Expense for the
three
months ended in Jun. 2026 was €-5 Mil.
Federal Signal's interest coverage for the quarter that ended in Jun. 2026 was 19.82.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Federal Signal's Interest Coverage or its related term are showing as below:
FRA:FSG'
s Interest Coverage Range Over the Past 10 Years
Min: 9.7 Med: 20.68 Max: 33.63
Current: 20.11
FRA:FSG's Interest Coverage is ranked better than 65.68% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.63
vs FRA:FSG: 20.11
Federal Signal (FRA:FSG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Federal Signal Interest Coverage Related Terms
Federal Signal Interest Coverage Historical Data
* Premium members only.
The historical data trend for Federal Signal's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:FSG vs TEX, AGCO, OSK: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Federal Signal's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Federal Signal (FRA:FSG) has a Interest Coverage of 19.82 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Federal Signal and its competitors. This is near median its historical median of 20.68. Over the past decade, Federal Signal's Interest Coverage has ranged from 9.70 to 33.63. According to the industry distribution chart, Federal Signal ranks #58 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 34.3%.
Is Federal Signal's Interest Coverage too high?
Federal Signal's current Interest Coverage of 19.82 is near median its 10-year median of 20.68. Over the past 10 years, this metric has ranged from a low of 9.70 to a high of 33.63. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.63. Federal Signal's value of 19.82 is 105.8% above this industry median. Based on the distribution chart, Federal Signal ranks #58 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Federal Signal has a GF Score™ of 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Federal Signal's Interest Coverage compare to TEX and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Federal Signal ranks #58 out of 169 companies for Interest Coverage. This puts Federal Signal in the upper half of its industry. The industry median Interest Coverage is 9.63. Federal Signal's value of 19.82 is 105.8% above this benchmark. Historically, Federal Signal's own Interest Coverage has ranged from 9.70 to 33.63 over the past decade. While the company's 10-year median is 20.68 vs. the industry median of 9.63, Federal Signal has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.63, based on 169 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current Interest Coverage of 19.82 is 105.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Federal Signal and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current Interest Coverage is 19.82, which is near median its own 10-year median of 20.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federal Signal stock overvalued right now?
Based on GuruFocus' analysis, Federal Signal (FRA:FSG) is currently considered Fairly Valued. The stock's GF Value™ is €98.00, compared to a current price of €100.00 — trading 2% above its estimated fair value. The current Interest Coverage is 19.82, which is near median its 10-year median of 20.68 and 105.8% above the Farm & Heavy Construction Machinery industry median of 9.63. Federal Signal's overall GF Score™ is 99/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Federal Signal (FRA:FSG), the current Interest Coverage is 19.82 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Federal Signal (FRA:FSG) Overvalued in 2026?
Based on GuruFocus' analysis, Federal Signal stock appears to be overvalued.
The current stock price of €100.00 is trading 2% above its estimated GF Value™ of €98.00.
GuruFocus considers Federal Signal to be Fairly Valued.
Key valuation signals for FRA:FSG:
Interest Coverage: 19.82 (near median its 10-year median of 20.68)
GF Value™: €98.00 vs. price of €100.00 (2% above fair value)
Industry Position: 105.8% above the Farm & Heavy Construction Machinery median (#58 of 169)
No single metric tells the full story. See the FRA:FSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Federal Signal Corp designs and manufactures products and integrated solutions for municipal, governmental, industrial, and airport customers. It operates through two segments. The Environmental Solutions Group manufactures and supplies street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance water blasting equipment, dump truck bodies, and trailers. The Safety and Security Systems Group manufactures and supplies comprehensive systems and products used by law enforcement, fire rescue, and industrial sites to protect people and property. Its offerings include systems for community alerting and industrial communications. The company generates the majority of its revenue from the Environmental Solutions Group segment.
99GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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