Forensic Analysis · OEM & Vehicle Bodies · as of Nov 9, 2026
Federal Signal Corp /De/ (FSS)
A forensic read on Federal Signal Corp /De/ built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
5.8
Distress distance
2
Forensic signals
19.2%
ROE
17.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Federal Signal Corp /De/ earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 5.8, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of NOA).
What the filings flag
+19.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +19.7% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. Net operating assets also rose $261.8M through acquisitions (increase in goodwill and intangibles); that purchase is investing and is excluded from this ratio. The build is led by receivables up +49% against revenue +17% and inventory up +42% against +17% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 1% of net operating assets, against an accruals ratio of 19.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.Accruals ratio: the year-over-year change in net operating assets, relative to their own average.NOA (net operating assets): the money tied up in running the business, operating assets minus operating liabilities.
95d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 87 to 95 FY2024→FY2025 (against cost of goods sold; inventory +42% vs +17% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
Key fundamentals
Latest Revenue$2.18B
Revenue Growth YoY+17.1%
Revenue CAGR (2yr)+12.5%
Net Margin11.3%
Free Cash Flow$227.1M
Return on Equity19.2%
Debt / Equity0.41x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Federal Signal Corp /De/'s actual 10-K/10-Q/8-K filings?