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Federal SignalSTU:FSG +0.94%99 3-Year ROIIC % is 17.80 as of Dec. 2025, which is 11% above its 10-year median of 16.04. 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 202 Farm & Heavy Construction Machinery companies, Federal Signal ranks better than 68.81% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Federal Signal's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 17.80%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Federal Signal's 3-Year ROIIC % or its related term are showing as below:
STU:FSG's 3-Year ROIIC % is ranked better than 68.81% of 202
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 2.32
vs STU:FSG: 17.80
Federal Signal (STU:FSG) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Federal Signal 3-Year ROIIC % Related Terms
Federal Signal 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Federal Signal's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Federal Signal's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Federal Signal (STU:FSG) has a 3-Year ROIIC % of 17.80 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Federal Signal and its competitors. This is 11% above median its historical median of 16.04. According to the industry distribution chart, Federal Signal ranks #63 out of 202 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 31.2%.
Is Federal Signal's 3-Year ROIIC % too high?
Federal Signal's current 3-Year ROIIC % of 17.80 is 11% above median its 10-year median of 16.04. The Farm & Heavy Construction Machinery industry median 3-Year ROIIC % is 2.32. Federal Signal's value of 17.80 is 667.2% above this industry median. Based on the distribution chart, Federal Signal ranks #63 out of 202 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. 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 3-Year ROIIC % compare to TEX and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Federal Signal ranks #63 out of 202 companies for 3-Year ROIIC %. This puts Federal Signal in the upper half of its industry. The industry median 3-Year ROIIC % is 2.32. Federal Signal's value of 17.80 is 667.2% above this benchmark. While the company's 10-year median is 16.04 vs. the industry median of 2.32, 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 3-Year ROIIC % for a Farm & Heavy Construction Machinery company?
The median 3-Year ROIIC % among Farm & Heavy Construction Machinery companies is 2.32, based on 202 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current 3-Year ROIIC % of 17.80 is 667.2% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Federal Signal and its competitors. For the Farm & Heavy Construction Machinery industry, the median 3-Year ROIIC % is 2.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current 3-Year ROIIC % is 17.80, which is 11% above median its own 10-year median of 16.04. 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 3-Year ROIIC % is 17.80, which is 11% above median its 10-year median of 16.04 and 667.2% above the Farm & Heavy Construction Machinery industry median of 2.32. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Federal Signal (STU:FSG), the current 3-Year ROIIC % is 17.80 as of Dec. 2025. 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:
3-Year ROIIC %: 17.80 (11% above median its 10-year median of 16.04)
GF Value™: €106.46 vs. price of €107.00 (0.5% above fair value)
Industry Position: 667.2% above the Farm & Heavy Construction Machinery median (#63 of 202)
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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