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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Federal Signal's Sloan Ratio for the quarter that ended in Jun. 2026 was 16.47%.
As of Jun. 2026, Federal Signal has a Sloan Ratio of 16.47%, indicating there is a warning stage of accrual build up.
Federal Signal (STU:FSG) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Federal Signal has a Sloan Ratio of 16.47%, indicating there is a warning stage of accrual build up.
Federal Signal Sloan Ratio % Related Terms
Federal Signal Sloan Ratio % Historical Data
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The historical data trend for Federal Signal's Sloan Ratio % 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: Sloan Ratio % Comparison
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Federal Signal's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Federal Signal's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Federal Signal's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 58.021 (Sep. 2025 ) + 51.923 (Dec. 2025 ) + 60.896 (Mar. 2026 ) + 74.735 (Jun. 2026 ) = €246 Mil.
Federal Signal's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 52.057 (Sep. 2025 ) + 83.009 (Dec. 2025 ) + 87.624 (Mar. 2026 ) + 97.997 (Jun. 2026 ) = €321 Mil.
Federal Signal's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -5.964 (Sep. 2025 ) + -364.316 (Dec. 2025 ) + -44.634 (Mar. 2026 ) + -9.114 (Jun. 2026 ) = €-424 Mil.
* 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 (STU:FSG) has a Sloan Ratio % of 16.47% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Federal Signal and its competitors.
Is Federal Signal's Sloan Ratio % too high?
Federal Signal's current Sloan Ratio % is 16.47%. 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 Sloan Ratio % compare to TEX and AGCO?
Federal Signal's Sloan Ratio % of 16.47% can be compared against companies in the Farm & Heavy Construction Machinery industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Farm & Heavy Construction Machinery company?
A good Sloan Ratio % depends on the Farm & Heavy Construction Machinery industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Federal Signal and its competitors. Federal Signal's current Sloan Ratio % is 16.47%. 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 Sloan Ratio % is 16.47%. 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 Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Federal Signal (STU:FSG), the current Sloan Ratio % is 16.47% 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:
Sloan Ratio %: 16.47%
GF Value™: €106.46 vs. price of €107.00 (0.5% above fair value)
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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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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