MOTOROLA SOLUTIONS INC (MSI) Fundamental Analysis & Valuation

NYSE:MSI • US6200763075

Current stock price

427.25 USD
-7.49 (-1.72%)
Last:

This MSI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MSI Profitability Analysis

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.
  • Each year in the past 5 years MSI had a positive operating cash flow.
MSI Yearly Net Income VS EBIT VS OCF VS FCFMSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B

1.2 Ratios

  • With an excellent Return On Assets value of 11.11%, MSI belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
  • MSI has a better Return On Equity (89.38%) than 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 16.51%, MSI belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
  • MSI had an Average Return On Invested Capital over the past 3 years of 21.01%. This is significantly above the industry average of 10.45%.
  • The last Return On Invested Capital (16.51%) for MSI is well below the 3 year average (21.01%), which needs to be investigated, but indicates that MSI had better years and this may not be a problem.
Industry RankSector Rank
ROA 11.11%
ROE 89.38%
ROIC 16.51%
ROA(3y)11.58%
ROA(5y)11.12%
ROE(3y)139.34%
ROE(5y)N/A
ROIC(3y)21.01%
ROIC(5y)19.25%
MSI Yearly ROA, ROE, ROICMSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1K -1K -2K -3K

1.3 Margins

  • MSI has a better Profit Margin (18.44%) than 89.13% of its industry peers.
  • MSI's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 25.31%, MSI belongs to the top of the industry, outperforming 95.65% 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 51.66% is fine compared to the rest of the industry. MSI outperforms 67.39% of its industry peers.
  • MSI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 25.31%
PM (TTM) 18.44%
GM 51.66%
OM growth 3Y9.74%
OM growth 5Y5.85%
PM growth 3Y7.22%
PM growth 5Y7.57%
GM growth 3Y3.64%
GM growth 5Y1.2%
MSI Yearly Profit, Operating, Gross MarginsMSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. MSI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSI is creating value.
  • Compared to 1 year ago, MSI has less shares outstanding
  • Compared to 5 years ago, MSI has less shares outstanding
  • The debt/assets ratio for MSI is higher compared to a year ago.
MSI Yearly Shares OutstandingMSI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
MSI Yearly Total Debt VS Total AssetsMSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.86 indicates that MSI is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.86, MSI is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
  • MSI has a debt to FCF ratio of 3.56. This is a good value and a sign of high solvency as MSI would need 3.56 years to pay back of all of its debts.
  • MSI has a Debt to FCF ratio (3.56) which is in line with its industry peers.
  • MSI has a Debt/Equity ratio of 3.80. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 3.80, MSI is not doing good in the industry: 91.30% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Altman-Z 3.86
ROIC/WACC1.72
WACC9.62%
MSI Yearly LT Debt VS Equity VS FCFMSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.04 indicates that MSI should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.04, MSI is doing worse than 86.96% of the companies in the same industry.
  • MSI has a Quick Ratio of 1.04. This is a bad value and indicates that MSI is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.87, MSI is doing worse than 84.78% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.87
MSI Yearly Current Assets VS Current LiabilitesMSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. MSI Growth Analysis

3.1 Past

  • MSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.35%, 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 14.90% yearly.
  • The Revenue has been growing slightly by 7.99% in the past year.
  • MSI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.52% yearly.
EPS 1Y (TTM)11.35%
EPS 3Y14.09%
EPS 5Y14.9%
EPS Q2Q%13.61%
Revenue 1Y (TTM)7.99%
Revenue growth 3Y8.63%
Revenue growth 5Y9.52%
Sales Q2Q%12.29%

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 9.24% on average per year.
  • The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y10.07%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
EPS Next 5Y9.24%
Revenue Next Year9.04%
Revenue Next 2Y7.47%
Revenue Next 3Y7%
Revenue Next 5Y6.79%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MSI Yearly Revenue VS EstimatesMSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
MSI Yearly EPS VS EstimatesMSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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3

4. MSI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 27.74, the valuation of MSI can be described as expensive.
  • MSI's Price/Earnings ratio is a bit cheaper when compared to the industry. MSI is cheaper than 65.22% of the companies in the same industry.
  • MSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
  • MSI is valuated quite expensively with a Price/Forward Earnings ratio of 25.20.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MSI is on the same level as its industry peers.
  • When comparing the Price/Forward Earnings ratio of MSI to the average of the S&P500 Index (21.99), we can say MSI is valued inline with the index average.
Industry RankSector Rank
PE 27.74
Fwd PE 25.2
MSI Price Earnings VS Forward Price EarningsMSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • MSI's Enterprise Value to EBITDA is on the same level as the industry average.
  • 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 RankSector Rank
P/FCF 27.61
EV/EBITDA 23.51
MSI Per share dataMSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

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.
  • MSI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.75
PEG (5Y)1.86
EPS Next 2Y9.16%
EPS Next 3Y9.08%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. MSI Dividend Analysis

5.1 Amount

  • MSI has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.89, MSI pays a bit more dividend than its industry peers.
  • MSI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.09%

5.2 History

  • The dividend of MSI is nicely growing with an annual growth rate of 11.27%!
  • 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)11.27%
Div Incr Years14
Div Non Decr Years14
MSI Yearly Dividends per shareMSI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • 33.80% of the earnings are spent on dividend by MSI. This is a low number and sustainable payout ratio.
  • MSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.8%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
MSI Yearly Income VS Free CF VS DividendMSI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B
MSI Dividend Payout.MSI Dividend Payout, showing the Payout Ratio.MSI Dividend Payout.PayoutRetained Earnings

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MSI Fundamentals: All Metrics, Ratios and Statistics

MOTOROLA SOLUTIONS INC

NYSE:MSI (4/29/2026, 3:24:56 PM)

427.25

-7.49 (-1.72%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Industry Strength91.93
Industry Growth94.41
Earnings (Last)02-11
Earnings (Next)05-07
Inst Owners87.9%
Inst Owner Change-0.08%
Ins Owners0.13%
Ins Owner Change10.13%
Market Cap71.01B
Revenue(TTM)11.68B
Net Income(TTM)2.15B
Analysts81.05
Price Target502.86 (17.7%)
Short Float %1.5%
Short Ratio2.45
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly Dividend4.38
Dividend Growth(5Y)11.27%
DP33.8%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-20
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)4.44%
Max EPS beat(2)4.57%
EPS beat(4)4
Avg EPS beat(4)4.79%
Min EPS beat(4)4.44%
Max EPS beat(4)5.5%
EPS beat(8)8
Avg EPS beat(8)6.07%
EPS beat(12)12
Avg EPS beat(12)5.95%
EPS beat(16)16
Avg EPS beat(16)5.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.3%
Max Revenue beat(2)0.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)0.25%
Revenue beat(8)5
Avg Revenue beat(8)0.08%
Revenue beat(12)9
Avg Revenue beat(12)0.24%
Revenue beat(16)13
Avg Revenue beat(16)0.98%
PT rev (1m)0%
PT rev (3m)1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
Industry RankSector Rank
PE 27.74
Fwd PE 25.2
P/S 6.08
P/FCF 27.61
P/OCF 25.03
P/B 29.46
P/tB N/A
EV/EBITDA 23.51
EPS(TTM)15.4
EY3.6%
EPS(NY)16.95
Fwd EY3.97%
FCF(TTM)15.48
FCFY3.62%
OCF(TTM)17.07
OCFY4%
SpS70.29
BVpS14.5
TBVpS-45.09
PEG (NY)2.75
PEG (5Y)1.86
Graham Number70.8834 (-83.41%)
Profitability
Industry RankSector Rank
ROA 11.11%
ROE 89.38%
ROCE 22.21%
ROIC 16.51%
ROICexc 18.01%
ROICexgc 77.63%
OM 25.31%
PM (TTM) 18.44%
GM 51.66%
FCFM 22.02%
ROA(3y)11.58%
ROA(5y)11.12%
ROE(3y)139.34%
ROE(5y)N/A
ROIC(3y)21.01%
ROIC(5y)19.25%
ROICexc(3y)25.94%
ROICexc(5y)23.84%
ROICexgc(3y)102.14%
ROICexgc(5y)83.79%
ROCE(3y)27.15%
ROCE(5y)24.75%
ROICexgc growth 3Y8.8%
ROICexgc growth 5Y13.39%
ROICexc growth 3Y-3.09%
ROICexc growth 5Y-0.09%
OM growth 3Y9.74%
OM growth 5Y5.85%
PM growth 3Y7.22%
PM growth 5Y7.57%
GM growth 3Y3.64%
GM growth 5Y1.2%
F-Score6
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Debt/EBITDA 2.71
Cap/Depr 62.35%
Cap/Sales 2.27%
Interest Coverage 10.38
Cash Conversion 83.89%
Profit Quality 119.41%
Current Ratio 1.04
Quick Ratio 0.87
Altman-Z 3.86
F-Score6
WACC9.62%
ROIC/WACC1.72
Cap/Depr(3y)69.97%
Cap/Depr(5y)64.71%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.59%
Profit Quality(3y)119.84%
Profit Quality(5y)120.51%
High Growth Momentum
Growth
EPS 1Y (TTM)11.35%
EPS 3Y14.09%
EPS 5Y14.9%
EPS Q2Q%13.61%
EPS Next Y10.07%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
EPS Next 5Y9.24%
Revenue 1Y (TTM)7.99%
Revenue growth 3Y8.63%
Revenue growth 5Y9.52%
Sales Q2Q%12.29%
Revenue Next Year9.04%
Revenue Next 2Y7.47%
Revenue Next 3Y7%
Revenue Next 5Y6.79%
EBIT growth 1Y9.97%
EBIT growth 3Y19.21%
EBIT growth 5Y15.92%
EBIT Next Year24.94%
EBIT Next 3Y12.99%
EBIT Next 5Y7.92%
FCF growth 1Y20.52%
FCF growth 3Y17.96%
FCF growth 5Y13%
OCF growth 1Y18.65%
OCF growth 3Y15.88%
OCF growth 5Y11.96%

MOTOROLA SOLUTIONS INC / MSI Fundamental Analysis 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 for MSI stock?

ChartMill assigns a valuation rating of 4 / 10 to MOTOROLA SOLUTIONS INC (MSI). This can be considered as Fairly Valued.


What is the profitability of MSI stock?

MOTOROLA SOLUTIONS INC (MSI) has a profitability rating of 9 / 10.


What are the PE and PB ratios of MOTOROLA SOLUTIONS INC (MSI) stock?

The Price/Earnings (PE) ratio for MOTOROLA SOLUTIONS INC (MSI) is 27.74 and the Price/Book (PB) ratio is 29.46.


Can you provide the financial health for MSI stock?

The financial health rating of MOTOROLA SOLUTIONS INC (MSI) is 4 / 10.