Is FEDERAL SIGNAL CORP /DE/ (FSS) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 9.0% / 30% | 1.0% / 30% | 4.4% / 30% | 0.84% / 5% | ✓ HALAL |
| DJIM | 9.0% / 33% | 1.0% / 33% | 4.4% / 33% | 0.84% / 5% | ✓ HALAL |
| MSCI | 24.9% / 33% | 2.7% / 33% | 12.2% / 33% | 0.84% / 5% | ✓ HALAL |
| S&P | 9.0% / 33% | 1.0% / 33% | 4.4% / 33% | 0.84% / 5% | ✓ HALAL |
| FTSE | 24.9% / 33% | 2.7% / 33% | 12.2% / 50% | 0.84% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 28.9% | |
| Operating Margin | 16.1% | |
| Net Margin | 11.3% | |
| Return on Equity (ROE) | 19.2% | |
| Return on Assets (ROA) | 10.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $255M |
| Free Cash Flow | $227M |
| Total Debt | $595M |
| Debt-to-Equity | 43.0 |
| Current Ratio | 3.0 |
| Total Assets | $2.4B |
Price & Trading
| Last Close | $108.55 |
| 50-Day MA | $112.90 |
| 200-Day MA | $115.11 |
| Avg Volume | 446K |
| Beta | 1.3 |
|
52-Week Range
$66.47
| |
About FEDERAL SIGNAL CORP /DE/ (FSS)
Federal Signal Corporation designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, Environmental Solutions Group, and Safety and Security Systems Group. The company offers street sweepers, sewer cleaners, industrial vacuum loaders, safe-digging trucks, dump truck bodies, and trailers, as well as waterblasting, road-marking, line-removal, metal extraction support equipment, and multi-purpose maintenance vehicles under the ELGIN, VACTOR, GUZZLER, TRUVAC, WESTECH, JETSTREAM, BLASTERS, MARK RITE LINES, HOG, NEW WAY, TRACKLESS, OX BODIES, CRYSTEEL, J-CRAFT, DURACLASS, RUGBY, TRAVIS, OSW, NTE, WTB, GROUND FORCE, TOWHAUL, BUCKS, AND SWITCH-N-GO brands; and provides refuse and recycling collection vehicles through a dealer network or direct sales to service customers. It is also involved in sale of parts, service and repair, equipment rentals, and training. The company also provides systems for community alerting, emergency vehicles, first responder interoperable communications, and industrial communications; public safety equipment, such as vehicle lightbars and sirens, industrial signaling equipment, public warning systems, and general alarm/public address systems under the Federal Signal, Federal Signal VAMA, and Victor brand names through wholesalers, distributors, independent manufacturer representatives, original equipment manufacturers, and direct sales force, as well as independent foreign distributors. Federal Signal Corporation was founded in 1901 and is based in Downers Grove, Illinois.
Purification Calculator
As a halal stock with 0.84% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is FEDERAL SIGNAL CORP /DE/ (FSS) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), FEDERAL SIGNAL CORP /DE/ is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is FEDERAL SIGNAL CORP /DE/'s debt ratio?
FEDERAL SIGNAL CORP /DE/'s debt ratio is 9.0% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 24.9%.
Does FEDERAL SIGNAL CORP /DE/ require dividend purification?
Yes, FEDERAL SIGNAL CORP /DE/ has an impermissible income ratio of 0.84%, which means 0.84% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are FEDERAL SIGNAL CORP /DE/'s key financial metrics?
FEDERAL SIGNAL CORP /DE/ has a market capitalization of $6.5B, trailing P/E ratio of 26.6, and revenue of $2.2B. The company maintains a gross margin of 28.9% and a net margin of 11.3%. Return on equity stands at 19.2%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.