MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
377.04 USD
+0.56 (+0.15%)
377.04 USD
0 (0%)
MSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While MSI belongs to the best of the industry regarding profitability, 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.
In the past year MSI had a positive cash flow from operations.
MSI had positive earnings in each of the past 5 years.
In the past 5 years MSI always reported a positive cash flow from operatings.
1.2 Ratios
MSI has a better Return On Assets (11.26%) than 91.67% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for MSI 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.
With an excellent Operating Margin value of 25.00%, MSI belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
MSI's Operating Margin has improved in the last couple of years.
MSI has a Gross Margin of 51.41%. This is in the better half 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 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.
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
MSI has an Altman-Z score of 3.59. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.59, MSI is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.68
WACC9.58%
2.3 Liquidity
A Current Ratio of 1.03 indicates that MSI should not have too much problems paying 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.
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
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.
MSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.71% yearly.
Looking at the last year, MSI shows a small growth in Revenue. The Revenue has grown by 6.17% in the last year.
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 3Y9.63%
EPS Next 5Y10.4%
Revenue Next Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.35%
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
The Price/Earnings ratio is 25.39, which means the current valuation is very expensive for MSI.
64.58% of the companies in the same industry are more expensive than MSI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MSI to the average of the S&P500 Index (26.92), 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.
62.50% of the companies in the same industry are more expensive than MSI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, MSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| 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 | 26.01 | ||
| EV/EBITDA | 22 |
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)2.17
EPS Next 2Y9.18%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
MSI has a Yearly Dividend Yield of 1.29%.
MSI's Dividend Yield is rather good when compared to the industry average which is at 0.77. MSI pays more dividend than 83.33% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.00, MSI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y9.18%
EPS Next 3Y9.63%
377.04
+0.56 (+0.15%)
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-4.87%
Market Cap62.80B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts78.89
Price Target497.52 (31.95%)
Short Float %1.37%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)-1.17%
PT rev (3m)-2.93%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)0.19%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.39 | ||
| Fwd PE | 22.87 | ||
| P/S | 5.55 | ||
| P/FCF | 26.01 | ||
| P/OCF | 23.69 | ||
| P/B | 26.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22 |
EPS(TTM)14.85
EY3.94%
EPS(NY)16.48
Fwd EY4.37%
FCF(TTM)14.49
FCFY3.84%
OCF(TTM)15.92
OCFY4.22%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.38
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 | 3.59 |
F-Score6
WACC9.58%
ROIC/WACC1.68
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 3Y7.35%
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.