MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
369.5 USD
-0.01 (0%)
370 USD
+0.5 (+0.14%)
Overall MSI gets a fundamental rating of 6 out of 10. We evaluated MSI against 48 industry peers in the Communications Equipment industry. MSI scores excellent on profitability, but 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
Looking at the Return On Assets, with a value of 11.26%, MSI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
MSI's Return On Equity of 90.93% is amongst the best of the industry. MSI outperforms 97.92% of its industry peers.
The Return On Invested Capital of MSI (16.09%) is better than 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 12.82%.
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.
In the last couple of years the Profit Margin of MSI has grown nicely.
The Operating Margin of MSI (25.00%) is better than 93.75% of its industry peers.
In the last couple of years the Operating Margin of MSI has grown nicely.
The Gross Margin of MSI (51.41%) is better than 70.83% 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.
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.
MSI has a better debt/assets ratio than last year.
2.2 Solvency
MSI has an Altman-Z score of 3.54. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
MSI's Altman-Z score of 3.54 is fine compared to the rest of the industry. MSI outperforms 68.75% of its industry peers.
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.
With a Debt to FCF ratio value of 3.87, MSI perfoms like the industry average, outperforming 54.17% 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.
Looking at the Debt to Equity ratio, with a value of 4.01, MSI is doing worse than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.76
WACC9.14%
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 89.58% of its industry peers.
A Quick Ratio of 0.86 indicates that MSI may have some problems paying its short term obligations.
With a Quick ratio value of 0.86, MSI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
MSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.47%, which is quite good.
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.
The Revenue has been growing slightly by 6.17% in the past year.
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
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 Y10.47%
EPS Next 2Y8.91%
EPS Next 3Y9.68%
EPS Next 5Y10.4%
Revenue Next Year8.31%
Revenue Next 2Y7.59%
Revenue Next 3Y7.36%
Revenue Next 5Y7.11%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 24.88, MSI is valued on the expensive side.
Based on the Price/Earnings ratio, MSI is valued a bit cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.15. MSI is around the same levels.
Based on the Price/Forward Earnings ratio of 22.52, the valuation of MSI can be described as rather expensive.
MSI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.12. MSI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 22.52 |
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 | 25.5 | ||
| EV/EBITDA | 21.61 |
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)2.38
PEG (5Y)2.12
EPS Next 2Y8.91%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, MSI has a reasonable but not impressive dividend return.
In the last 3 months the price of MSI has falen by -21.79%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MSI's Dividend Yield is rather good when compared to the industry average which is at 3.36. MSI pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 1.32, MSI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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 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 2Y8.91%
EPS Next 3Y9.68%
369.5
-0.01 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change-2.45%
Ins Owners0.11%
Ins Owner Change-5.01%
Market Cap61.56B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts80
Price Target503.42 (36.24%)
Short Float %1.15%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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)-1.59%
PT rev (3m)-1.07%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)1.09%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.88 | ||
| Fwd PE | 22.52 | ||
| P/S | 5.44 | ||
| P/FCF | 25.5 | ||
| P/OCF | 23.22 | ||
| P/B | 26.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.61 |
EPS(TTM)14.85
EY4.02%
EPS(NY)16.41
Fwd EY4.44%
FCF(TTM)14.49
FCFY3.92%
OCF(TTM)15.91
OCFY4.31%
SpS67.91
BVpS13.97
TBVpS-45.5
PEG (NY)2.38
PEG (5Y)2.12
Graham Number68.31
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 | 3.54 |
F-Score6
WACC9.14%
ROIC/WACC1.76
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 Y10.47%
EPS Next 2Y8.91%
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 Year8.31%
Revenue Next 2Y7.59%
Revenue Next 3Y7.36%
Revenue Next 5Y7.11%
EBIT growth 1Y5.09%
EBIT growth 3Y16.07%
EBIT growth 5Y10.49%
EBIT Next Year23%
EBIT Next 3Y13.57%
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 10.47% in the next year.