Federal Signal Corporation — Earnings Quality Grade F
FSS · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 10 days
AR growth 48.8% exceeds revenue growth 17.1%
Revenue 17.1%, CFFO 10.1%. Cash follows revenue
Expense Quality
Inventory growth 42.5% exceeds COGS 16.6%
CapEx growth -32.0% vs revenue 17.1%. Normal
SG&A/Gross Profit = 40.5%. Normal
Gross margin 28.9%, change +0.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.03. Profits backed by cash
FCF $0.2B, FCF/NI = 0.92
Accruals ratio = -0.3%. Low accruals
Cash $0.1B covers only 11% of debt $0.6B
Balance Sheet Health
Goodwill+Intangibles $1.0B = 73% of equity. Over 50%
Debt/EBITDA = 1.4x. Healthy
Other assets 26.9% vs revenue 17.1%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 48% YoY
Manipulation Score
M-Score = -2.18 (grey zone)
Portfolio monitoring
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25