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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Federal Signal's 3-Year RORE % for the quarter that ended in Jun. 2026 was 9.20%.
The industry rank for Federal Signal's 3-Year RORE % or its related term are showing as below:
STU:FSG's 3-Year RORE % is ranked better than 62.24% of 196
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 0.985
vs STU:FSG: 9.20
Federal Signal (STU:FSG) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Federal Signal 3-Year RORE % Related Terms
Federal Signal 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Federal Signal's 3-Year RORE % 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 RORE % Comparison
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Federal Signal's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 3-year before.
Federal Signal (STU:FSG) has a 3-Year RORE % of 9.20 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Federal Signal and its competitors. According to the industry distribution chart, Federal Signal ranks #74 out of 196 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 37.8%.
Is Federal Signal's 3-Year RORE % too high?
Federal Signal's current 3-Year RORE % is 9.20. The Farm & Heavy Construction Machinery industry median 3-Year RORE % is 0.99. Federal Signal's value of 9.20 is 834% above this industry median. Based on the distribution chart, Federal Signal ranks #74 out of 196 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 RORE % compare to TEX and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Federal Signal ranks #74 out of 196 companies for 3-Year RORE %. This puts Federal Signal in the upper half of its industry. The industry median 3-Year RORE % is 0.99. Federal Signal's value of 9.20 is 834% 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 3-Year RORE % for a Farm & Heavy Construction Machinery company?
The median 3-Year RORE % among Farm & Heavy Construction Machinery companies is 0.99, based on 196 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current 3-Year RORE % of 9.20 is 834% 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Federal Signal and its competitors. For the Farm & Heavy Construction Machinery industry, the median 3-Year RORE % is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current 3-Year RORE % is 9.20. 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 RORE % is 9.20 and 834% above the Farm & Heavy Construction Machinery industry median of 0.99. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Federal Signal (STU:FSG), the current 3-Year RORE % is 9.20 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:
3-Year RORE %: 9.20
GF Value™: €106.46 vs. price of €107.00 (0.5% above fair value)
Industry Position: 834% above the Farm & Heavy Construction Machinery median (#74 of 196)
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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