MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
376.48 USD
-1.9 (-0.5%)
375.77 USD
-0.71 (-0.19%)
MSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. MSI has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, MSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MSI was profitable.
In the past year MSI had a positive cash flow from operations.
Each year in the past 5 years MSI has been profitable.
Each year in the past 5 years MSI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MSI (11.26%) is better than 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 90.93%, MSI belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
MSI has a Return On Invested Capital of 16.09%. This is amongst the best in the industry. MSI outperforms 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MSI is significantly above the industry average of 12.35%.
The last Return On Invested Capital (16.09%) for MSI is well below the 3 year average (21.45%), which needs to be investigated, but indicates that MSI had better years and this may not be a problem.
| 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
The Profit Margin of MSI (18.70%) is better than 93.75% of its industry peers.
In the last couple of years the Profit Margin of MSI has grown nicely.
MSI has a Operating Margin of 25.00%. This is amongst the best in the industry. MSI outperforms 93.75% of its industry peers.
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.
In the last couple of years the Gross Margin of MSI has remained more or less at the same level.
| 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
MSI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MSI has been increased compared to 1 year ago.
MSI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MSI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.60 indicates that MSI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.60, MSI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of MSI is 3.87, which is a good value as it means it would take MSI, 3.87 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.87, MSI is in line with its industry, outperforming 54.17% of the companies in the same industry.
MSI has a Debt/Equity ratio of 4.01. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 4.01, MSI is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.6 |
ROIC/WACC1.74
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.03 indicates that MSI should not have too much problems paying its short term obligations.
MSI's Current ratio of 1.03 is on the low side compared to the rest of the industry. MSI is outperformed by 89.58% 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 85.42% 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.
Measured over the past years, MSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.71% on average per year.
MSI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.17%.
Measured over the past years, MSI shows a small growth in Revenue. The Revenue has been growing by 6.52% on average per year.
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
MSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.40% yearly.
The Revenue is expected to grow by 7.11% on average over the next years.
EPS Next Y10.68%
EPS Next 2Y9.1%
EPS Next 3Y9.68%
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
Based on the Price/Earnings ratio of 25.35, the valuation of MSI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MSI indicates a somewhat cheap valuation: MSI is cheaper than 64.58% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MSI to the average of the S&P500 Index (26.59), we can say MSI is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.87, MSI is valued on the expensive side.
MSI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.03. MSI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.87 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA ratio is in line with the industry average.
MSI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.97 | ||
| EV/EBITDA | 22.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MSI may justify a higher PE ratio.
PEG (NY)2.37
PEG (5Y)2.17
EPS Next 2Y9.1%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
MSI has a Yearly Dividend Yield of 1.30%.
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.
MSI's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
On average, the dividend of MSI grows each year by 11.64%, which is quite nice.
MSI has paid a dividend for at least 10 years, which is a reliable track record.
MSI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.64%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
MSI pays out 33.55% of its income as dividend. This is a sustainable payout ratio.
The dividend of MSI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.55%
EPS Next 2Y9.1%
EPS Next 3Y9.68%
376.48
-1.9 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.32%
Inst Owner Change-2.43%
Ins Owners0.11%
Ins Owner Change-4.86%
Market Cap62.70B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts78.89
Price TargetN/A
Short Float %1.37%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend3.92
Dividend Growth(5Y)11.64%
DP33.55%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)-2.26%
PT rev (3m)-2.15%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.19%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.35 | ||
| Fwd PE | 22.87 | ||
| P/S | 5.54 | ||
| P/FCF | 25.97 | ||
| P/OCF | 23.65 | ||
| P/B | 26.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.07 |
EPS(TTM)14.85
EY3.94%
EPS(NY)16.46
Fwd EY4.37%
FCF(TTM)14.49
FCFY3.85%
OCF(TTM)15.92
OCFY4.23%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.37
PEG (5Y)2.17
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 | 3.6 |
F-Score6
WACC9.27%
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 2Y9.1%
EPS Next 3Y9.68%
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.
Can you provide the valuation status for MOTOROLA SOLUTIONS INC?
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 financial health of MOTOROLA SOLUTIONS INC (MSI) stock?
The financial health rating of MOTOROLA SOLUTIONS INC (MSI) is 4 / 10.
What is the expected EPS growth for MOTOROLA SOLUTIONS INC (MSI) stock?
The Earnings per Share (EPS) of MOTOROLA SOLUTIONS INC (MSI) is expected to grow by 10.68% in the next year.