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Should you consider MOTOROLA SOLUTIONS INC (NYSE:MSI) for quality investing?

By Mill Chart

Last update: Jun 27, 2024

In this article we will dive into MOTOROLA SOLUTIONS INC (NYSE:MSI) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MOTOROLA SOLUTIONS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.


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A Deep Dive into MOTOROLA SOLUTIONS INC's Quality Metrics.

  • MOTOROLA SOLUTIONS INC has achieved substantial revenue growth over the past 5 years, with a 6.32% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a robust ROIC excluding cash and goodwill at 83.05%, MOTOROLA SOLUTIONS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • MOTOROLA SOLUTIONS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.88, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • MOTOROLA SOLUTIONS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 135.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • The 5-year EBIT growth of MOTOROLA SOLUTIONS INC has been remarkable, with 11.92% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • MOTOROLA SOLUTIONS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, MSI scores 6 out of 10 in our fundamental rating. MSI was compared to 53 industry peers in the Communications Equipment industry. MSI scores excellent on profitability, but there are some minor concerns on its financial health. MSI is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of MSI for a complete fundamental analysis.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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