MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
383.14 USD
+1.25 (+0.33%)
383.14 USD
0 (0%)
Overall MSI gets a fundamental rating of 6 out of 10. We evaluated MSI against 48 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSI was profitable.
MSI had a positive operating cash flow in the past year.
MSI had positive earnings in each of the past 5 years.
MSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MSI has a Return On Assets of 11.26%. This is amongst the best in the industry. MSI outperforms 91.67% of its industry peers.
With an excellent Return On Equity value of 90.93%, MSI belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.09%, MSI belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MSI is significantly above the industry average of 12.15%.
The 3 year average ROIC (21.45%) for MSI is well above the current ROIC(16.09%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 90.93% | ||
| ROIC | 16.09% |
ROA(3y)11.42%
ROA(5y)10.64%
ROE(3y)501.22%
ROE(5y)N/A
ROIC(3y)21.45%
ROIC(5y)19.32%
1.3 Margins
MSI's Profit Margin of 18.70% is amongst the best of the industry. MSI outperforms 93.75% of its industry peers.
MSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.00%, MSI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of MSI has grown nicely.
MSI has a better Gross Margin (51.41%) than 68.75% of its industry peers.
MSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25% | ||
| PM (TTM) | 18.7% | ||
| GM | 51.41% |
OM growth 3Y5.71%
OM growth 5Y3.73%
PM growth 3Y-1.46%
PM growth 5Y5.78%
GM growth 3Y1.01%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSI is creating value.
Compared to 1 year ago, MSI has more shares outstanding
Compared to 5 years ago, MSI has less shares outstanding
MSI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.63 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI's Altman-Z score of 3.63 is fine compared to the rest of the industry. MSI outperforms 68.75% of its industry peers.
MSI has a debt to FCF ratio of 3.87. This is a good value and a sign of high solvency as MSI would need 3.87 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.87, MSI perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
A Debt/Equity ratio of 4.01 is on the high side and indicates that MSI has dependencies on debt financing.
The Debt to Equity ratio of MSI (4.01) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.74
WACC9.23%
2.3 Liquidity
MSI has a Current Ratio of 1.03. This is a normal value and indicates that MSI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MSI (1.03) is worse than 87.50% of its industry peers.
A Quick Ratio of 0.86 indicates that MSI may have some problems paying its short term obligations.
MSI has a Quick ratio of 0.86. This is amonst the worse of the industry: MSI underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.47% over the past year.
The Earnings Per Share has been growing by 11.71% on average over the past years. This is quite good.
MSI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.17%.
MSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.52% yearly.
EPS 1Y (TTM)8.47%
EPS 3Y14.8%
EPS 5Y11.71%
EPS Q2Q%8.56%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%7.85%
3.2 Future
The Earnings Per Share is expected to grow by 10.40% on average over the next years. This is quite good.
Based on estimates for the next years, MSI will show a small growth in Revenue. The Revenue will grow by 7.11% on average per year.
EPS Next Y10.68%
EPS Next 2Y9.18%
EPS Next 3Y9.63%
EPS Next 5Y10.4%
Revenue Next Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.35%
Revenue Next 5Y7.11%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MSI is valuated quite expensively with a Price/Earnings ratio of 25.80.
MSI's Price/Earnings ratio is a bit cheaper when compared to the industry. MSI is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, MSI is valued at the same level.
With a Price/Forward Earnings ratio of 23.24, MSI is valued on the expensive side.
62.50% of the companies in the same industry are more expensive than MSI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, MSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.43 | ||
| EV/EBITDA | 22.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MSI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)2.2
EPS Next 2Y9.18%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
MSI has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.77, MSI pays a better dividend. On top of this MSI pays more dividend than 83.33% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 1.92, MSI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of MSI is nicely growing with an annual growth rate of 11.64%!
MSI has been paying a dividend for at least 10 years, so it has a reliable track record.
MSI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.64%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
33.55% of the earnings are spent on dividend by MSI. This is a low number and sustainable payout ratio.
MSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.55%
EPS Next 2Y9.18%
EPS Next 3Y9.63%
383.14
+1.25 (+0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.29%
Inst Owner Change0.08%
Ins Owners0.11%
Ins Owner Change-4.85%
Market Cap63.81B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts82.22
Price Target497.52 (29.85%)
Short Float %1.62%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend3.92
Dividend Growth(5Y)11.64%
DP33.55%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.97%
Min EPS beat(2)4.44%
Max EPS beat(2)5.5%
EPS beat(4)4
Avg EPS beat(4)4.39%
Min EPS beat(4)3%
Max EPS beat(4)5.5%
EPS beat(8)8
Avg EPS beat(8)6.29%
EPS beat(12)12
Avg EPS beat(12)5.89%
EPS beat(16)16
Avg EPS beat(16)5.7%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.3%
Max Revenue beat(2)0.25%
Revenue beat(4)1
Avg Revenue beat(4)-0.25%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)0.25%
Revenue beat(8)5
Avg Revenue beat(8)0.1%
Revenue beat(12)9
Avg Revenue beat(12)0.72%
Revenue beat(16)12
Avg Revenue beat(16)0.89%
PT rev (1m)-0.79%
PT rev (3m)-2.74%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)0.02%
EPS NY rev (1m)0%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 23.24 | ||
| P/S | 5.64 | ||
| P/FCF | 26.43 | ||
| P/OCF | 24.07 | ||
| P/B | 27.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.32 |
EPS(TTM)14.85
EY3.88%
EPS(NY)16.48
Fwd EY4.3%
FCF(TTM)14.49
FCFY3.78%
OCF(TTM)15.92
OCFY4.15%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.42
PEG (5Y)2.2
Graham Number68.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.26% | ||
| ROE | 90.93% | ||
| ROCE | 21.52% | ||
| ROIC | 16.09% | ||
| ROICexc | 17.18% | ||
| ROICexgc | 69.29% | ||
| OM | 25% | ||
| PM (TTM) | 18.7% | ||
| GM | 51.41% | ||
| FCFM | 21.34% |
ROA(3y)11.42%
ROA(5y)10.64%
ROE(3y)501.22%
ROE(5y)N/A
ROIC(3y)21.45%
ROIC(5y)19.32%
ROICexc(3y)27.05%
ROICexc(5y)24.32%
ROICexgc(3y)98.23%
ROICexgc(5y)78.04%
ROCE(3y)26.79%
ROCE(5y)24.13%
ROICexgc growth 3Y14.88%
ROICexgc growth 5Y11.67%
ROICexc growth 3Y9.54%
ROICexc growth 5Y6.55%
OM growth 3Y5.71%
OM growth 5Y3.73%
PM growth 3Y-1.46%
PM growth 5Y5.78%
GM growth 3Y1.01%
GM growth 5Y0.44%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 64.4% | ||
| Cap/Sales | 2.09% | ||
| Interest Coverage | 10.25 | ||
| Cash Conversion | 82.95% | ||
| Profit Quality | 114.08% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 3.63 |
F-Score6
WACC9.23%
ROIC/WACC1.74
Cap/Depr(3y)68.58%
Cap/Depr(5y)62.85%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.72%
Profit Quality(3y)118.36%
Profit Quality(5y)126.04%
High Growth Momentum
Growth
EPS 1Y (TTM)8.47%
EPS 3Y14.8%
EPS 5Y11.71%
EPS Q2Q%8.56%
EPS Next Y10.68%
EPS Next 2Y9.18%
EPS Next 3Y9.63%
EPS Next 5Y10.4%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%7.85%
Revenue Next Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.35%
Revenue Next 5Y7.11%
EBIT growth 1Y5.09%
EBIT growth 3Y16.07%
EBIT growth 5Y10.49%
EBIT Next Year23.49%
EBIT Next 3Y13.61%
EBIT Next 5Y9.56%
FCF growth 1Y32.13%
FCF growth 3Y10.21%
FCF growth 5Y6.26%
OCF growth 1Y27.94%
OCF growth 3Y9.18%
OCF growth 5Y5.57%
MOTOROLA SOLUTIONS INC / MSI FAQ
What is the ChartMill fundamental rating of MOTOROLA SOLUTIONS INC (MSI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MSI.
What is the valuation status of MOTOROLA SOLUTIONS INC (MSI) stock?
ChartMill assigns a valuation rating of 3 / 10 to MOTOROLA SOLUTIONS INC (MSI). This can be considered as Overvalued.
Can you provide the profitability details for MOTOROLA SOLUTIONS INC?
MOTOROLA SOLUTIONS INC (MSI) has a profitability rating of 9 / 10.
What is the earnings growth outlook for MOTOROLA SOLUTIONS INC?
The Earnings per Share (EPS) of MOTOROLA SOLUTIONS INC (MSI) is expected to grow by 10.68% in the next year.
Can you provide the dividend sustainability for MSI stock?
The dividend rating of MOTOROLA SOLUTIONS INC (MSI) is 6 / 10 and the dividend payout ratio is 33.55%.