MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
397.49 USD
+2.54 (+0.64%)
397.49 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 has a great profitability rating, 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.
- MSI has a better Return On Equity (90.93%) than 97.92% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 16.09%, MSI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- MSI had an Average Return On Invested Capital over the past 3 years of 21.45%. This is significantly above the industry average of 12.15%.
- 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
- With an excellent Profit Margin value of 18.70%, MSI belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
- 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.
- 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.
- 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.
- The debt/assets ratio for MSI has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.70 indicates that MSI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of MSI (3.70) is better than 66.67% 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.
- MSI has a Debt/Equity ratio of 4.01. This is a high value indicating a heavy dependency on external financing.
- MSI's Debt to Equity ratio of 4.01 is on the low side compared to the rest of the industry. MSI is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.7 |
ROIC/WACC1.7
WACC9.44%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that MSI should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.03, MSI is doing worse than 87.50% of the companies in the same industry.
- A Quick Ratio of 0.86 indicates that MSI may have some problems paying its short term obligations.
- MSI's Quick ratio of 0.86 is on the low side compared to the rest of the industry. MSI is outperformed by 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.
- Looking at the last year, MSI shows a small growth in Revenue. The Revenue has grown by 6.17% in the last year.
- The Revenue has been growing slightly by 6.52% on average over the past years.
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.
- The Revenue is expected to grow by 7.11% on average over the next years.
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 3Y7.28%
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 26.77.
- MSI's Price/Earnings ratio is a bit cheaper when compared to the industry. MSI is cheaper than 68.75% 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 27.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 24.11, 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.
- When comparing the Price/Forward Earnings ratio of MSI to the average of the S&P500 Index (24.30), we can say MSI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.77 | ||
| Fwd PE | 24.11 |
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 | 27.42 | ||
| EV/EBITDA | 22.93 |
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)2.51
PEG (5Y)2.29
EPS Next 2Y9.18%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
- MSI has a Yearly Dividend Yield of 1.23%. 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 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
- The dividend of MSI is nicely growing with an annual growth rate of 11.64%!
- 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.
- 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%
397.49
+2.54 (+0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners88.29%
Inst Owner Change-0.23%
Ins Owners0.11%
Ins Owner Change-4.85%
Market Cap66.20B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts82.22
Price Target495.03 (24.54%)
Short Float %1.53%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)-1.29%
PT rev (3m)-3.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.05%
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 | 26.77 | ||
| Fwd PE | 24.11 | ||
| P/S | 5.85 | ||
| P/FCF | 27.42 | ||
| P/OCF | 24.97 | ||
| P/B | 28.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.93 |
EPS(TTM)14.85
EY3.74%
EPS(NY)16.48
Fwd EY4.15%
FCF(TTM)14.49
FCFY3.65%
OCF(TTM)15.92
OCFY4%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.51
PEG (5Y)2.29
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 | 3.7 |
F-Score6
WACC9.44%
ROIC/WACC1.7
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 3Y7.28%
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 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%.