MOTOROLA SOLUTIONS INC (MSI) Fundamental Analysis & Valuation

NYSE:MSI • US6200763075

Current stock price

438.96 USD
+4.83 (+1.11%)
At close:
438.96 USD
0 (0%)
After Hours:

This MSI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MSI Profitability Analysis

1.1 Basic Checks

  • MSI had positive earnings in the past year.
  • In the past year MSI had a positive cash flow from operations.
  • Each year in the past 5 years MSI has been profitable.
  • MSI had a positive operating cash flow in each of the past 5 years.
MSI Yearly Net Income VS EBIT VS OCF VS FCFMSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B

1.2 Ratios

  • MSI's Return On Assets of 11.11% is amongst the best of the industry. MSI outperforms 87.50% of its industry peers.
  • The Return On Equity of MSI (89.38%) is better than 100.00% of its industry peers.
  • The Return On Invested Capital of MSI (16.51%) is better than 91.67% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MSI is significantly above the industry average of 10.22%.
  • The 3 year average ROIC (21.01%) for MSI is well above the current ROIC(16.51%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 11.11%
ROE 89.38%
ROIC 16.51%
ROA(3y)11.58%
ROA(5y)11.12%
ROE(3y)139.34%
ROE(5y)N/A
ROIC(3y)21.01%
ROIC(5y)19.25%
MSI Yearly ROA, ROE, ROICMSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1K -1K -2K -3K

1.3 Margins

  • MSI has a better Profit Margin (18.44%) than 89.58% of its industry peers.
  • MSI's Profit Margin has improved in the last couple of years.
  • The Operating Margin of MSI (25.31%) is better than 95.83% of its industry peers.
  • In the last couple of years the Operating Margin of MSI has grown nicely.
  • MSI's Gross Margin of 51.66% is fine compared to the rest of the industry. MSI outperforms 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 RankSector Rank
OM 25.31%
PM (TTM) 18.44%
GM 51.66%
OM growth 3Y9.74%
OM growth 5Y5.85%
PM growth 3Y7.22%
PM growth 5Y7.57%
GM growth 3Y3.64%
GM growth 5Y1.2%
MSI Yearly Profit, Operating, Gross MarginsMSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. MSI Health Analysis

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 less shares outstanding
  • MSI has less shares outstanding than it did 5 years ago.
  • MSI has a worse debt/assets ratio than last year.
MSI Yearly Shares OutstandingMSI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
MSI Yearly Total Debt VS Total AssetsMSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • MSI has an Altman-Z score of 3.87. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
  • MSI's Altman-Z score of 3.87 is fine compared to the rest of the industry. MSI outperforms 70.83% of its industry peers.
  • MSI has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as MSI would need 3.56 years to pay back of all of its debts.
  • MSI has a Debt to FCF ratio (3.56) which is in line with its industry peers.
  • MSI has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
  • The Debt to Equity ratio of MSI (3.80) is worse than 91.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Altman-Z 3.87
ROIC/WACC1.97
WACC8.4%
MSI Yearly LT Debt VS Equity VS FCFMSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • MSI has a Current Ratio of 1.04. This is a normal value and indicates that MSI is financially healthy and should not expect problems in meeting its short term obligations.
  • MSI has a worse Current ratio (1.04) than 85.42% of its industry peers.
  • A Quick Ratio of 0.87 indicates that MSI may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.87, MSI is doing worse than 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.87
MSI Yearly Current Assets VS Current LiabilitesMSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. MSI Growth Analysis

3.1 Past

  • MSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.35%, which is quite good.
  • The Earnings Per Share has been growing by 14.90% 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 7.99%.
  • The Revenue has been growing by 9.52% on average over the past years. This is quite good.
EPS 1Y (TTM)11.35%
EPS 3Y14.09%
EPS 5Y14.9%
EPS Q2Q%13.61%
Revenue 1Y (TTM)7.99%
Revenue growth 3Y8.63%
Revenue growth 5Y9.52%
Sales Q2Q%12.29%

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 9.24% yearly.
  • Based on estimates for the next years, MSI will show a small growth in Revenue. The Revenue will grow by 6.79% on average per year.
EPS Next Y10.07%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
EPS Next 5Y9.24%
Revenue Next Year9.04%
Revenue Next 2Y7.47%
Revenue Next 3Y7%
Revenue Next 5Y6.79%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
MSI Yearly Revenue VS EstimatesMSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
MSI Yearly EPS VS EstimatesMSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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3

4. MSI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 28.50, which means the current valuation is very expensive for MSI.
  • Based on the Price/Earnings ratio, MSI is valued a bit cheaper than 66.67% of the companies in the same industry.
  • MSI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.60, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 25.90 indicates a quite expensive valuation of MSI.
  • The rest of the industry has a similar Price/Forward Earnings ratio as MSI.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, MSI is valued at the same level.
Industry RankSector Rank
PE 28.5
Fwd PE 25.9
MSI Price Earnings VS Forward Price EarningsMSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • MSI's Enterprise Value to EBITDA is on the same level as the industry average.
  • MSI's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 28.27
EV/EBITDA 23.64
MSI Per share dataMSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of MSI may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)1.91
EPS Next 2Y9.16%
EPS Next 3Y9.08%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. MSI Dividend Analysis

5.1 Amount

  • MSI has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
  • MSI's Dividend Yield is rather good when compared to the industry average which is at 0.76. MSI pays more dividend than 83.33% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, MSI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.08%

5.2 History

  • On average, the dividend of MSI grows each year by 11.27%, 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)11.27%
Div Incr Years13
Div Non Decr Years13
MSI Yearly Dividends per shareMSI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • 33.80% 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.
DP33.8%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
MSI Yearly Income VS Free CF VS DividendMSI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B
MSI Dividend Payout.MSI Dividend Payout, showing the Payout Ratio.MSI Dividend Payout.PayoutRetained Earnings

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MSI Fundamentals: All Metrics, Ratios and Statistics

MOTOROLA SOLUTIONS INC

NYSE:MSI (4/2/2026, 8:04:00 PM)

After market: 438.96 0 (0%)

438.96

+4.83 (+1.11%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners87.89%
Inst Owner Change-1.18%
Ins Owners0.13%
Ins Owner Change10.12%
Market Cap72.72B
Revenue(TTM)11.68B
Net Income(TTM)2.15B
Analysts81.05
Price Target502.86 (14.56%)
Short Float %1.32%
Short Ratio1.82
Dividend
Industry RankSector Rank
Dividend Yield 1.08%
Yearly Dividend4.38
Dividend Growth(5Y)11.27%
DP33.8%
Div Incr Years13
Div Non Decr Years13
Ex-Date03-20
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)4.44%
Max EPS beat(2)4.57%
EPS beat(4)4
Avg EPS beat(4)4.79%
Min EPS beat(4)4.44%
Max EPS beat(4)5.5%
EPS beat(8)8
Avg EPS beat(8)6.07%
EPS beat(12)12
Avg EPS beat(12)5.95%
EPS beat(16)16
Avg EPS beat(16)5.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.3%
Max Revenue beat(2)0.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)0.25%
Revenue beat(8)5
Avg Revenue beat(8)0.08%
Revenue beat(12)9
Avg Revenue beat(12)0.24%
Revenue beat(16)13
Avg Revenue beat(16)0.98%
PT rev (1m)0%
PT rev (3m)1.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.09%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.73%
Valuation
Industry RankSector Rank
PE 28.5
Fwd PE 25.9
P/S 6.22
P/FCF 28.27
P/OCF 25.63
P/B 30.17
P/tB N/A
EV/EBITDA 23.64
EPS(TTM)15.4
EY3.51%
EPS(NY)16.95
Fwd EY3.86%
FCF(TTM)15.53
FCFY3.54%
OCF(TTM)17.13
OCFY3.9%
SpS70.52
BVpS14.55
TBVpS-45.24
PEG (NY)2.83
PEG (5Y)1.91
Graham Number71
Profitability
Industry RankSector Rank
ROA 11.11%
ROE 89.38%
ROCE 22.21%
ROIC 16.51%
ROICexc 18.01%
ROICexgc 77.63%
OM 25.31%
PM (TTM) 18.44%
GM 51.66%
FCFM 22.02%
ROA(3y)11.58%
ROA(5y)11.12%
ROE(3y)139.34%
ROE(5y)N/A
ROIC(3y)21.01%
ROIC(5y)19.25%
ROICexc(3y)25.94%
ROICexc(5y)23.84%
ROICexgc(3y)102.14%
ROICexgc(5y)83.79%
ROCE(3y)27.15%
ROCE(5y)24.75%
ROICexgc growth 3Y8.8%
ROICexgc growth 5Y13.39%
ROICexc growth 3Y-3.09%
ROICexc growth 5Y-0.09%
OM growth 3Y9.74%
OM growth 5Y5.85%
PM growth 3Y7.22%
PM growth 5Y7.57%
GM growth 3Y3.64%
GM growth 5Y1.2%
F-Score6
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Debt/EBITDA 2.71
Cap/Depr 62.35%
Cap/Sales 2.27%
Interest Coverage 10.38
Cash Conversion 83.89%
Profit Quality 119.41%
Current Ratio 1.04
Quick Ratio 0.87
Altman-Z 3.87
F-Score6
WACC8.4%
ROIC/WACC1.97
Cap/Depr(3y)69.97%
Cap/Depr(5y)64.71%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.59%
Profit Quality(3y)119.84%
Profit Quality(5y)120.51%
High Growth Momentum
Growth
EPS 1Y (TTM)11.35%
EPS 3Y14.09%
EPS 5Y14.9%
EPS Q2Q%13.61%
EPS Next Y10.07%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
EPS Next 5Y9.24%
Revenue 1Y (TTM)7.99%
Revenue growth 3Y8.63%
Revenue growth 5Y9.52%
Sales Q2Q%12.29%
Revenue Next Year9.04%
Revenue Next 2Y7.47%
Revenue Next 3Y7%
Revenue Next 5Y6.79%
EBIT growth 1Y9.97%
EBIT growth 3Y19.21%
EBIT growth 5Y15.92%
EBIT Next Year25.31%
EBIT Next 3Y12.99%
EBIT Next 5Y7.92%
FCF growth 1Y20.52%
FCF growth 3Y17.96%
FCF growth 5Y13%
OCF growth 1Y18.65%
OCF growth 3Y15.88%
OCF growth 5Y11.96%

MOTOROLA SOLUTIONS INC / MSI Fundamental Analysis 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 for MSI stock?

ChartMill assigns a valuation rating of 3 / 10 to MOTOROLA SOLUTIONS INC (MSI). This can be considered as Overvalued.


What is the profitability of MSI stock?

MOTOROLA SOLUTIONS INC (MSI) has a profitability rating of 9 / 10.


What are the PE and PB ratios of MOTOROLA SOLUTIONS INC (MSI) stock?

The Price/Earnings (PE) ratio for MOTOROLA SOLUTIONS INC (MSI) is 28.5 and the Price/Book (PB) ratio is 30.17.


Can you provide the financial health for MSI stock?

The financial health rating of MOTOROLA SOLUTIONS INC (MSI) is 4 / 10.