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Federal SignalFRA:FSG 99 Altman Z-Score is 7.53 as of Aug. 03, 2026, which is 63% above its 10-year median of 4.63. 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 209 Farm & Heavy Construction Machinery companies, Federal Signal ranks better than 90.43% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 7.54 is strong.
Federal Signal has a Altman Z-Score of 7.53, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Federal Signal's Altman Z-Score or its related term are showing as below:
FRA:FSG'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.67 Med: 4.63 Max: 9.83
Current: 7.54
During the past 13 years, Federal Signal's highest Altman Z-Score was 9.83. The lowest was 2.67. And the median was 4.63.
Federal Signal (FRA:FSG) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Federal Signal Altman Z-Score Related Terms
Federal Signal Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Federal Signal's Altman Z-Score 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.
FRA:FSG vs TEX, AGCO, OSK: Altman Z-Score Comparison
For the Farm & Heavy Construction Machinery subindustry, Federal Signal's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Federal Signal's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Federal Signal's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Federal Signal's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.223
+
1.4
*
0.5957
+
3.3
*
0.1598
+
0.6
*
8.1785
+
1.0
*
0.9942
=
7.53
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Federal Signal (FRA:FSG) has a Altman Z-Score of 7.53 as of Aug. 03, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Federal Signal and its competitors. This is 63% above median its historical median of 4.63. Over the past decade, Federal Signal's Altman Z-Score has ranged from 2.67 to 9.83. According to the industry distribution chart, Federal Signal ranks #20 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 9.6%.
Is Federal Signal's Altman Z-Score too high?
Federal Signal's current Altman Z-Score of 7.53 is 63% above median its 10-year median of 4.63. Over the past 10 years, this metric has ranged from a low of 2.67 to a high of 9.83. The Farm & Heavy Construction Machinery industry median Altman Z-Score is 2.63. Federal Signal's value of 7.53 is 186.3% above this industry median. Based on the distribution chart, Federal Signal ranks #20 out of 209 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 Altman Z-Score compare to TEX and AGCO?
According to the Farm & Heavy Construction Machinery industry distribution chart, Federal Signal ranks #20 out of 209 companies for Altman Z-Score. This places Federal Signal in the top 10% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 2.63. Federal Signal's value of 7.53 is 186.3% above this benchmark. Historically, Federal Signal's own Altman Z-Score has ranged from 2.67 to 9.83 over the past decade. While the company's 10-year median is 4.63 vs. the industry median of 2.63, 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 Altman Z-Score for a Farm & Heavy Construction Machinery company?
The median Altman Z-Score among Farm & Heavy Construction Machinery companies is 2.63, based on 209 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federal Signal's current Altman Z-Score of 7.53 is 186.3% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Federal Signal and its competitors. For the Farm & Heavy Construction Machinery industry, the median Altman Z-Score is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federal Signal's current Altman Z-Score is 7.53, which is 63% above median its own 10-year median of 4.63. 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 Altman Z-Score is 7.53, which is 63% above median its 10-year median of 4.63 and 186.3% above the Farm & Heavy Construction Machinery industry median of 2.63. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Federal Signal (FRA:FSG), the current Altman Z-Score is 7.53 as of Aug. 03, 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:
Altman Z-Score: 7.53 (63% above median its 10-year median of 4.63)
GF Value™: €98.00 vs. price of €100.00 (2% above fair value)
Industry Position: 186.3% above the Farm & Heavy Construction Machinery median (#20 of 209)
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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