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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Federal Signal's annualized ROCE % for the quarter that ended in Jun. 2026 was 22.02%.
ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.
Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.
Federal Signal ROCE % Related Terms
Federal Signal ROCE % Historical Data
* Premium members only.
The historical data trend for Federal Signal's ROCE % 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.
(1) Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
Federal Signal (FRA:FSG) has a ROCE % of 22.02% as of Jun. 2026.
Is Federal Signal's ROCE % too high?
Federal Signal's current ROCE % is 22.02%. The Farm & Heavy Construction Machinery industry median ROCE % is 9.18. Federal Signal's value of 22.02% is 139.9% above this industry median. 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 ROCE % compare to TEX and AGCO?
Federal Signal's ROCE % of 22.02% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROCE % is 9.18. Federal Signal's value of 22.02% is 139.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Farm & Heavy Construction Machinery company?
The median ROCE % among Farm & Heavy Construction Machinery companies is 9.18, based on 205 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current ROCE % of 22.02% is 139.9% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Farm & Heavy Construction Machinery industry, the median ROCE % is 9.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current ROCE % is 22.02%. 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 ROCE % is 22.02% and 139.9% above the Farm & Heavy Construction Machinery industry median of 9.18. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Federal Signal (FRA:FSG), the current ROCE % is 22.02% 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:
ROCE %: 22.02%
GF Value™: €98.00 vs. price of €100.00 (2% above fair value)
Industry Position: 139.9% above the Farm & Heavy Construction Machinery median
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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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