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Federal Signal has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Federal Signal's Interest Coverage for the quarter that ended in Jun. 2026 was 19.82.
Federal Signal's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.18.
As of today, Federal Signal's Altman Z-Score is 7.67.
Federal Signal (FRA:FSG) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Federal Signal has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Federal Signal Financial Strength Related Terms
FRA:FSG vs TEX, AGCO, OSK: Financial Strength Comparison
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's Financial Strength distribution charts can be found below:
* The bar in red indicates where Federal Signal's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Federal Signal has a Z-score of 7.67, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 7.67 is strong.
* 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 Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Federal Signal and its competitors. This is 14% above median its historical median of 7.00. Over the past decade, Federal Signal's Financial Strength has ranged from 6.00 to 9.00.
Is Federal Signal's Financial Strength too high?
Federal Signal's current Financial Strength of 8 is 14% above median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 9.00. 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 Financial Strength compare to TEX and AGCO?
Federal Signal's Financial Strength of 8 can be compared against companies in the Farm & Heavy Construction Machinery industry. Historically, Federal Signal's own Financial Strength has ranged from 6.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Farm & Heavy Construction Machinery company?
A good Financial Strength depends on the Farm & Heavy Construction Machinery industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Federal Signal and its competitors. Federal Signal's current Financial Strength is 8, which is 14% above median its own 10-year median of 7.00. 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 €101.38, compared to a current price of €104.00 — trading 2.6% above its estimated fair value. The current Financial Strength is 8, which is 14% above median its 10-year median of 7.00. Federal Signal's overall GF Score™ is 99/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Federal Signal (FRA:FSG), the current Financial Strength is 8 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 €104.00 is trading 2.6% above its estimated GF Value™ of €101.38.
GuruFocus considers Federal Signal to be Fairly Valued.
Key valuation signals for FRA:FSG:
Financial Strength: 8 (14% above median its 10-year median of 7.00)
GF Value™: €101.38 vs. price of €104.00 (2.6% above fair value)
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
Get the complete analysis for FRA:FSG
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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