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Is MOTOROLA SOLUTIONS INC (NYSE:MSI) suited for quality investing?

By Mill Chart

Last update: Jun 6, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MOTOROLA SOLUTIONS INC (NYSE:MSI) is suited for quality investing. Investors should of course do their own research, but we spotted MOTOROLA SOLUTIONS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.


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Why NYSE:MSI may be interesting for quality investors.

  • Over the past 5 years, MOTOROLA SOLUTIONS INC has experienced impressive revenue growth, with 6.32% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a notable ROIC excluding cash and goodwill at 83.05%, MOTOROLA SOLUTIONS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of MOTOROLA SOLUTIONS INC stands at 2.88, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • With a robust Profit Quality (5-year) ratio of 135.0%, MOTOROLA SOLUTIONS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • MOTOROLA SOLUTIONS INC has experienced impressive EBIT growth over the past 5 years, with 11.92% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • MOTOROLA SOLUTIONS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NYSE:MSI telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, MSI scores 6 out of 10 in our fundamental rating. MSI was compared to 54 industry peers in the Communications Equipment industry. MSI has an excellent profitability rating, but there are some minor concerns on its financial health. MSI is quite expensive at the moment. It does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of MSI

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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