Is MOTOROLA SOLUTIONS INC (NYSE:MSI) a Strong Candidate for Quality Investing?

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.

Why NYSE:MSI may be interesting for quality investors.

• MOTOROLA SOLUTIONS INC has shown strong performance in revenue growth over the past 5 years, with a 6.32% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of MOTOROLA SOLUTIONS INC stands at 76.24%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 2.59, MOTOROLA SOLUTIONS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• MOTOROLA SOLUTIONS INC exhibits impressive Profit Quality (5-year) with a 135.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• 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 superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

MSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. While MSI belongs to the best of the industry regarding profitability, 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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.