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Federal SignalFRA:FSG 99 ROE % is 23.45% as of Jun. 2026, which is 49% above its 10-year median of 15.77. 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 204 Farm & Heavy Construction Machinery companies, Federal Signal ranks better than 88.24% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Federal Signal's annualized net income for the quarter that ended in Jun. 2026 was €299 Mil. Federal Signal's average Total Stockholders Equity over the quarter that ended in Jun. 2026 was €1,275 Mil. Therefore, Federal Signal's annualized ROE % for the quarter that ended in Jun. 2026 was 23.45%.
The historical rank and industry rank for Federal Signal's ROE % or its related term are showing as below:
FRA:FSG'
s ROE % Range Over the Past 10 Years
Min: 10.95 Med: 15.77 Max: 20.66
Current: 20.66
During the past 13 years, Federal Signal's highest ROE % was 20.66%. The lowest was 10.95%. And the median was 15.77%.
FRA:FSG's ROE % is ranked better than 88.24% of 204
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.74
vs FRA:FSG: 20.66
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Federal Signal ROE % Related Terms
Federal Signal ROE % Historical Data
* Premium members only.
The historical data trend for Federal Signal's ROE % 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's ROE % distribution charts can be found below:
* The bar in red indicates where Federal Signal's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Federal Signal (FRA:FSG) has a ROE % of 23.45% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Federal Signal and its competitors. This is 49% above median its historical median of 15.77. Over the past decade, Federal Signal's ROE % has ranged from 10.95 to 20.66. According to the industry distribution chart, Federal Signal ranks #24 out of 204 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 11.8%.
Is Federal Signal's ROE % too high?
Federal Signal's current ROE % of 23.45% is 49% above median its 10-year median of 15.77. Over the past 10 years, this metric has ranged from a low of 10.95 to a high of 20.66. The Farm & Heavy Construction Machinery industry median ROE % is 7.74. Federal Signal's value of 23.45% is 203% above this industry median. Based on the distribution chart, Federal Signal ranks #24 out of 204 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 ROE % compare to TEX and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Federal Signal ranks #24 out of 204 companies for ROE %. This places Federal Signal in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 7.74. Federal Signal's value of 23.45% is 203% above this benchmark. Historically, Federal Signal's own ROE % has ranged from 10.95 to 20.66 over the past decade. While the company's 10-year median is 15.77 vs. the industry median of 7.74, 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 ROE % for a Farm & Heavy Construction Machinery company?
The median ROE % among Farm & Heavy Construction Machinery companies is 7.74, based on 204 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current ROE % of 23.45% is 203% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Federal Signal and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROE % is 7.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current ROE % is 23.45%, which is 49% above median its own 10-year median of 15.77. 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 ROE % is 23.45%, which is 49% above median its 10-year median of 15.77 and 203% above the Farm & Heavy Construction Machinery industry median of 7.74. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Federal Signal (FRA:FSG), the current ROE % is 23.45% 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:
ROE %: 23.45% (49% above median its 10-year median of 15.77)
GF Value™: €98.00 vs. price of €100.00 (2% above fair value)
Industry Position: 203% above the Farm & Heavy Construction Machinery median (#24 of 204)
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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