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Federal SignalFRA:FSG 99 ROA % is 14.10% as of Jun. 2026, which is 60% above its 10-year median of 8.83. 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 212 Farm & Heavy Construction Machinery companies, Federal Signal ranks better than 91.51% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Federal Signal's annualizedNet Income for the quarter that ended in Jun. 2026 was €299 Mil.
Federal Signal's average Total Assets over the quarter that ended in Jun. 2026 was €2,120 Mil. Therefore, Federal Signal's annualized ROA % for the quarter that ended in Jun. 2026 was 14.10%.
The historical rank and industry rank for Federal Signal's ROA % or its related term are showing as below:
FRA:FSG'
s ROA % Range Over the Past 10 Years
Min: 6.69 Med: 8.83 Max: 12.81
Current: 12.81
During the past 13 years, Federal Signal's highest ROA % was 12.81%. The lowest was 6.69%. And the median was 8.83%.
FRA:FSG's ROA % is ranked better than 91.51% of 212
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 3.815
vs FRA:FSG: 12.81
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Federal Signal ROA % Related Terms
Federal Signal ROA % Historical Data
* Premium members only.
The historical data trend for Federal Signal's ROA % 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.
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's ROA % distribution charts can be found below:
* The bar in red indicates where Federal Signal's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Federal Signal (FRA:FSG) has a ROA % of 14.10% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Federal Signal and its competitors. This is 60% above median its historical median of 8.83. Over the past decade, Federal Signal's ROA % has ranged from 6.69 to 12.81. According to the industry distribution chart, Federal Signal ranks #18 out of 212 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 8.5%.
Is Federal Signal's ROA % too high?
Federal Signal's current ROA % of 14.10% is 60% above median its 10-year median of 8.83. Over the past 10 years, this metric has ranged from a low of 6.69 to a high of 12.81. The Farm & Heavy Construction Machinery industry median ROA % is 3.82. Federal Signal's value of 14.10% is 269.6% above this industry median. Based on the distribution chart, Federal Signal ranks #18 out of 212 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 ROA % compare to TEX and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Federal Signal ranks #18 out of 212 companies for ROA %. This places Federal Signal in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 3.82. Federal Signal's value of 14.10% is 269.6% above this benchmark. Historically, Federal Signal's own ROA % has ranged from 6.69 to 12.81 over the past decade. While the company's 10-year median is 8.83 vs. the industry median of 3.82, 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 ROA % for a Farm & Heavy Construction Machinery company?
The median ROA % among Farm & Heavy Construction Machinery companies is 3.82, based on 212 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current ROA % of 14.10% is 269.6% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Federal Signal and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROA % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current ROA % is 14.10%, which is 60% above median its own 10-year median of 8.83. 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 ROA % is 14.10%, which is 60% above median its 10-year median of 8.83 and 269.6% above the Farm & Heavy Construction Machinery industry median of 3.82. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Federal Signal (FRA:FSG), the current ROA % is 14.10% 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:
ROA %: 14.10% (60% above median its 10-year median of 8.83)
GF Value™: €98.00 vs. price of €100.00 (2% above fair value)
Industry Position: 269.6% above the Farm & Heavy Construction Machinery median (#18 of 212)
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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