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Federal SignalSTU:FSG +0.94%99 Return-on-Tangible-Equity is 76.85% as of Jun. 2026, which is 15% above its 10-year median of 66.96. GuruFocus rates STU:FSG with a GF Score™ of 99/100 and a GF Value™ of €106.46 (Fairly Valued). The stock has 1 warning sign investors should review. Among 199 Farm & Heavy Construction Machinery companies, Federal Signal ranks better than 92.46% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Federal Signal's annualized net income for the quarter that ended in Jun. 2026 was €299 Mil. Federal Signal's average shareholder tangible equity for the quarter that ended in Jun. 2026 was €389 Mil. Therefore, Federal Signal's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 76.85%.
The historical rank and industry rank for Federal Signal's Return-on-Tangible-Equity or its related term are showing as below:
STU:FSG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.27 Med: 66.96 Max: 213.16
Current: 59.92
During the past 13 years, Federal Signal's highest Return-on-Tangible-Equity was 213.16%. The lowest was 27.27%. And the median was 66.96%.
STU:FSG's Return-on-Tangible-Equity is ranked better than 92.46% of 199
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.27
vs STU:FSG: 59.92
Federal Signal (STU:FSG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Federal Signal Return-on-Tangible-Equity Related Terms
Federal Signal Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Federal Signal's Return-on-Tangible-Equity 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.
STU:FSG vs TEX, AGCO, OSK: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Federal Signal's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 76.85% mean?
Federal Signal (STU:FSG) has a Return-on-Tangible-Equity of 76.85% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Federal Signal and its competitors. This is 15% above median its historical median of 66.96. Over the past decade, Federal Signal's Return-on-Tangible-Equity has ranged from 27.27 to 213.16. According to the industry distribution chart, Federal Signal ranks #15 out of 199 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 7.5%.
Is Federal Signal's Return-on-Tangible-Equity too high?
Federal Signal's current Return-on-Tangible-Equity of 76.85% is 15% above median its 10-year median of 66.96. Over the past 10 years, this metric has ranged from a low of 27.27 to a high of 213.16. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.27. Federal Signal's value of 76.85% is 729% above this industry median. Based on the distribution chart, Federal Signal ranks #15 out of 199 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Equity compare to TEX and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Federal Signal ranks #15 out of 199 companies for Return-on-Tangible-Equity. This places Federal Signal in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.27. Federal Signal's value of 76.85% is 729% above this benchmark. Historically, Federal Signal's own Return-on-Tangible-Equity has ranged from 27.27 to 213.16 over the past decade. While the company's 10-year median is 66.96 vs. the industry median of 9.27, 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 Return-on-Tangible-Equity for a Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.27, based on 199 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current Return-on-Tangible-Equity of 76.85% is 729% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Federal Signal and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current Return-on-Tangible-Equity is 76.85%, which is 15% above median its own 10-year median of 66.96. 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 (STU:FSG) is currently considered Fairly Valued. The stock's GF Value™ is €106.46, compared to a current price of €107.00 — trading 0.5% above its estimated fair value. The current Return-on-Tangible-Equity is 76.85%, which is 15% above median its 10-year median of 66.96 and 729% above the Farm & Heavy Construction Machinery industry median of 9.27. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Federal Signal (STU:FSG), the current Return-on-Tangible-Equity is 76.85% 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 (STU:FSG) Overvalued in 2026?
Based on GuruFocus' analysis, Federal Signal stock appears to be overvalued.
The current stock price of €107.00 is trading 0.5% above its estimated GF Value™ of €106.46.
GuruFocus considers Federal Signal to be Fairly Valued.
Key valuation signals for STU:FSG:
Return-on-Tangible-Equity: 76.85% (15% above median its 10-year median of 66.96)
GF Value™: €106.46 vs. price of €107.00 (0.5% above fair value)
Industry Position: 729% above the Farm & Heavy Construction Machinery median (#15 of 199)
No single metric tells the full story. See the STU: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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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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