MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MSI • US6200763075
402.54 USD
-0.61 (-0.15%)
At close: Jan 30, 2026
402.54 USD
0 (0%)
After Hours: 1/30/2026, 8:07:26 PM
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. MSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- MSI had positive earnings in the past year.
- MSI had a positive operating cash flow in the past year.
- In the past 5 years MSI has always been profitable.
- In the past 5 years MSI always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 11.26%, MSI belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- 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.
- MSI's Return On Invested Capital of 16.09% is amongst the best of the industry. MSI outperforms 91.67% of its industry peers.
- MSI had an Average Return On Invested Capital over the past 3 years of 21.45%. This is significantly above the industry average of 12.17%.
- 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
- The Profit Margin of MSI (18.70%) is better than 93.75% of its industry peers.
- MSI's Profit Margin has improved in the last couple of years.
- MSI has a better Operating Margin (25.00%) than 93.75% of its industry peers.
- MSI's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 51.41%, MSI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSI is creating value.
- MSI has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for MSI has been reduced compared to 5 years ago.
- Compared to 1 year ago, MSI has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.75 indicates that MSI is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 3.75, MSI is doing good in the industry, outperforming 64.58% 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.
- MSI has a Debt to FCF ratio (3.87) which is in line with its industry peers.
- MSI has a Debt/Equity ratio of 4.01. This is a high value indicating a heavy dependency on external financing.
- MSI has a worse Debt to Equity ratio (4.01) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.75 |
ROIC/WACC1.65
WACC9.77%
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.
- MSI has a Current ratio of 1.03. This is amonst the worse of the industry: MSI underperforms 87.50% of its industry peers.
- MSI has a Quick Ratio of 1.03. This is a bad value and indicates that MSI is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of MSI (0.86) is worse than 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.
- 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%.
- 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
- Based on estimates for the next years, MSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
- 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 3Y9.5%
EPS Next 5Y10.4%
Revenue Next Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.28%
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 27.11.
- Based on the Price/Earnings ratio, MSI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.30. MSI is around the same levels.
- With a Price/Forward Earnings ratio of 24.42, MSI is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of MSI to the average of the S&P500 Index (25.57), we can say MSI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 24.42 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSI.
- 60.42% of the companies in the same industry are more expensive than MSI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.77 | ||
| EV/EBITDA | 23.36 |
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)2.54
PEG (5Y)2.31
EPS Next 2Y9.18%
EPS Next 3Y9.5%
5. Dividend
5.1 Amount
- MSI has a Yearly Dividend Yield of 1.20%. 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.
- MSI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
- On average, the dividend of MSI grows each year by 11.64%, which is quite nice.
- MSI has been paying a dividend for at least 10 years, so it has 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
- 33.55% of the earnings are spent on dividend by MSI. This is a low number and 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 2Y9.18%
EPS Next 3Y9.5%
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 4 / 10 to MOTOROLA SOLUTIONS INC (MSI). This can be considered as Fairly Valued.
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%.