MOTOROLA SOLUTIONS INC (MSI)
US6200763075 - Common Stock
We assign a fundamental rating of 6 out of 10 to MSI. MSI was compared to 51 industry peers in the Communications Equipment industry. MSI has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, MSI is valued expensive at the moment.
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.
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
MSI's Return On Assets of 11.25% is amongst the best of the industry. MSI outperforms 94.12% of its industry peers.
With an excellent Return On Equity value of 117.80%, MSI belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
MSI's Return On Invested Capital of 24.81% is amongst the best of the industry. MSI outperforms 98.04% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MSI is significantly above the industry average of 11.02%.
The 3 year average ROIC (20.80%) for MSI is below the current ROIC(24.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 117.8% | ||
| ROIC | 24.81% |
ROA(3y)11.22%
ROA(5y)10.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.8%
ROIC(5y)19.59%
1.3 Margins
MSI's Profit Margin of 14.66% is amongst the best of the industry. MSI outperforms 90.20% of its industry peers.
MSI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.25%, MSI belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
In the last couple of years the Operating Margin of MSI has grown nicely.
MSI's Gross Margin of 50.85% is fine compared to the rest of the industry. MSI outperforms 66.67% of its industry peers.
MSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| PM (TTM) | 14.66% | ||
| GM | 50.85% |
OM growth 3Y7.46%
OM growth 5Y5.26%
PM growth 3Y10.19%
PM growth 5Y5.42%
GM growth 3Y0.78%
GM growth 5Y1%
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 less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MSI has more shares outstanding
The debt/assets ratio for MSI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.48 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI has a better Altman-Z score (5.48) than 86.27% of its industry peers.
The Debt to FCF ratio of MSI is 2.59, which is a good value as it means it would take MSI, 2.59 years of fcf income to pay off all of its debts.
MSI has a better Debt to FCF ratio (2.59) than 60.78% of its industry peers.
A Debt/Equity ratio of 4.28 is on the high side and indicates that MSI has dependencies on debt financing.
MSI's Debt to Equity ratio of 4.28 is on the low side compared to the rest of the industry. MSI is outperformed by 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 5.48 |
ROIC/WACC2.66
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.25 indicates that MSI should not have too much problems paying its short term obligations.
MSI has a Current ratio of 1.25. This is amonst the worse of the industry: MSI underperforms 80.39% of its industry peers.
MSI has a Quick Ratio of 1.07. 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 Quick ratio of 1.07. This is in the lower half of the industry: MSI underperforms 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.41% over the past year.
MSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.90% yearly.
The Revenue has grown by 8.33% in the past year. This is quite good.
Measured over the past years, MSI shows a small growth in Revenue. The Revenue has been growing by 6.32% on average per year.
EPS 1Y (TTM)17.41%
EPS 3Y15.86%
EPS 5Y10.9%
EPS Q2Q%17.24%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y10.41%
Revenue growth 5Y6.32%
Sales Q2Q%9.15%
3.2 Future
The Earnings Per Share is expected to grow by 11.37% on average over the next years. This is quite good.
MSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y15.56%
EPS Next 2Y11.33%
EPS Next 3Y10.56%
EPS Next 5Y11.37%
Revenue Next Year8.64%
Revenue Next 2Y7.32%
Revenue Next 3Y6.91%
Revenue Next 5Y6.57%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.43 indicates a quite expensive valuation of MSI.
Based on the Price/Earnings ratio, MSI is valued a bit cheaper than 62.75% of the companies in the same industry.
MSI is valuated rather expensively when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 31.79, MSI can be considered very expensive at the moment.
MSI's Price/Forward Earnings ratio is in line with the industry average.
MSI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.43 | ||
| Fwd PE | 31.79 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSI is on the same level as its industry peers.
62.75% 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 | 34.04 | ||
| EV/EBITDA | 27.61 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MSI may justify a higher PE ratio.
PEG (NY)2.21
PEG (5Y)3.16
EPS Next 2Y11.33%
EPS Next 3Y10.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, MSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 10.11, MSI pays a better dividend. On top of this MSI pays more dividend than 80.39% of the companies listed in the same industry.
With a Dividend Yield of 0.94, MSI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of MSI grows each year by 11.19%, 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)11.19%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
40.72% of the earnings are spent on dividend by MSI. This is a bit on the high side, but may be sustainable.
MSI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.72%
EPS Next 2Y11.33%
EPS Next 3Y10.56%
MOTOROLA SOLUTIONS INC
NYSE:MSI (12/26/2024, 8:04:00 PM)
After market: 471.31 0 (0%)471.31
-1.14 (-0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.96%
Inst Owner Change0.19%
Ins Owners0.13%
Ins Owner Change-2.52%
Market Cap78.77B
Analysts83.33
Price Target523.06 (10.98%)
Short Float %0.89%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)11.19%
DP40.72%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.17%
Min EPS beat(2)6.65%
Max EPS beat(2)9.69%
EPS beat(4)4
Avg EPS beat(4)8.19%
Min EPS beat(4)6.34%
Max EPS beat(4)10.1%
EPS beat(8)8
Avg EPS beat(8)6.63%
EPS beat(12)12
Avg EPS beat(12)6.13%
EPS beat(16)16
Avg EPS beat(16)6.7%
Revenue beat(2)2
Avg Revenue beat(2)0.34%
Min Revenue beat(2)0.07%
Max Revenue beat(2)0.61%
Revenue beat(4)4
Avg Revenue beat(4)0.44%
Min Revenue beat(4)0.07%
Max Revenue beat(4)0.89%
Revenue beat(8)8
Avg Revenue beat(8)1.2%
Revenue beat(12)11
Avg Revenue beat(12)1.27%
Revenue beat(16)15
Avg Revenue beat(16)1.15%
PT rev (1m)15.99%
PT rev (3m)19.37%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)2.14%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.43 | ||
| Fwd PE | 31.79 | ||
| P/S | 7.39 | ||
| P/FCF | 34.04 | ||
| P/OCF | 30.7 | ||
| P/B | 59.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.61 |
EPS(TTM)13.69
EY2.9%
EPS(NY)14.82
Fwd EY3.15%
FCF(TTM)13.85
FCFY2.94%
OCF(TTM)15.35
OCFY3.26%
SpS63.76
BVpS7.93
TBVpS-20.9
PEG (NY)2.21
PEG (5Y)3.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 117.8% | ||
| ROCE | 29.17% | ||
| ROIC | 24.81% | ||
| ROICexc | 29.27% | ||
| ROICexgc | 76.24% | ||
| OM | 25.25% | ||
| PM (TTM) | 14.66% | ||
| GM | 50.85% | ||
| FCFM | 21.72% |
ROA(3y)11.22%
ROA(5y)10.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.8%
ROIC(5y)19.59%
ROICexc(3y)26.29%
ROICexc(5y)24.17%
ROICexgc(3y)94.63%
ROICexgc(5y)75.63%
ROCE(3y)24.45%
ROCE(5y)23.03%
ROICexcg growth 3Y53.44%
ROICexcg growth 5Y26.91%
ROICexc growth 3Y20.22%
ROICexc growth 5Y8.58%
OM growth 3Y7.46%
OM growth 5Y5.26%
PM growth 3Y10.19%
PM growth 5Y5.42%
GM growth 3Y0.78%
GM growth 5Y1%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 75.22% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 12.69 | ||
| Cash Conversion | 84.8% | ||
| Profit Quality | 148.14% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 5.48 |
F-Score6
WACC9.33%
ROIC/WACC2.66
Cap/Depr(3y)61.58%
Cap/Depr(5y)60.15%
Cap/Sales(3y)2.77%
Cap/Sales(5y)2.88%
Profit Quality(3y)115.93%
Profit Quality(5y)135.27%
High Growth Momentum
Growth
EPS 1Y (TTM)17.41%
EPS 3Y15.86%
EPS 5Y10.9%
EPS Q2Q%17.24%
EPS Next Y15.56%
EPS Next 2Y11.33%
EPS Next 3Y10.56%
EPS Next 5Y11.37%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y10.41%
Revenue growth 5Y6.32%
Sales Q2Q%9.15%
Revenue Next Year8.64%
Revenue Next 2Y7.32%
Revenue Next 3Y6.91%
Revenue Next 5Y6.57%
EBIT growth 1Y17.46%
EBIT growth 3Y18.65%
EBIT growth 5Y11.92%
EBIT Next Year33.11%
EBIT Next 3Y14.9%
EBIT Next 5Y11.45%
FCF growth 1Y130.94%
FCF growth 3Y8.66%
FCF growth 5Y15.32%
OCF growth 1Y104.79%
OCF growth 3Y8.21%
OCF growth 5Y13.71%