MOTOROLA SOLUTIONS INC (MSI) Fundamental Analysis & Valuation

NYSE:MSI • US6200763075

462.44 USD
-1.67 (-0.36%)
Last: Mar 11, 2026, 03:42 PM
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This MSI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Taking everything into account, MSI scores 6 out of 10 in our fundamental rating. MSI was compared to 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.


Dividend Valuation Growth Profitability Health

9

1. MSI Profitability Analysis

1.1 Basic Checks

  • MSI had positive earnings in the past year.
  • In the past year MSI had a positive cash flow from operations.
  • Each year in the past 5 years MSI has been profitable.
  • In the past 5 years MSI always reported a positive cash flow from operatings.
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

  • Looking at the Return On Assets, with a value of 11.11%, MSI belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • MSI's Return On Equity of 89.38% is amongst the best of the industry. MSI outperforms 100.00% of its industry peers.
  • MSI's Return On Invested Capital of 16.51% is amongst the best of the industry. MSI outperforms 91.67% of its industry peers.
  • MSI had an Average Return On Invested Capital over the past 3 years of 21.01%. This is significantly above the industry average of 10.39%.
  • 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 89.58% 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 95.83% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MSI has grown nicely.
  • Looking at the Gross Margin, with a value of 51.66%, MSI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
  • 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.
  • MSI has less shares outstanding than it did 1 year ago.
  • MSI has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MSI has a worse debt to assets ratio.
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 4.02 indicates that MSI is not in any danger for bankruptcy at the moment.
  • MSI has a better Altman-Z score (4.02) than 70.83% of its industry peers.
  • 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.
  • MSI's Debt to Equity ratio of 3.80 is on the low side compared to the rest of the industry. MSI is outperformed by 91.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Altman-Z 4.02
ROIC/WACC1.75
WACC9.43%
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.
  • MSI has a worse Current ratio (1.04) than 85.42% of its industry peers.
  • A Quick Ratio of 0.87 indicates that MSI may have some problems paying its short term obligations.
  • MSI has a worse Quick ratio (0.87) than 83.33% of its industry peers.
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

  • The Earnings Per Share has grown by an nice 11.35% over the past year.
  • Measured over the past years, MSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.90% on average per year.
  • The Revenue has been growing slightly by 7.99% in the past year.
  • Measured over the past years, MSI shows a quite strong growth in Revenue. The Revenue has been growing by 9.52% on average per year.
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

  • The Earnings Per Share is expected to grow by 9.24% 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 6.79% yearly.
EPS Next Y10.07%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
EPS Next 5Y9.24%
Revenue Next Year9.03%
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

  • The Price/Earnings ratio is 30.03, which means the current valuation is very expensive for MSI.
  • Based on the Price/Earnings ratio, MSI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.25, MSI is valued at the same level.
  • MSI is valuated quite expensively with a Price/Forward Earnings ratio of 27.28.
  • MSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSI is cheaper than 60.42% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of MSI to the average of the S&P500 Index (24.39), we can say MSI is valued inline with the index average.
Industry RankSector Rank
PE 30.03
Fwd PE 27.28
MSI Price Earnings VS Forward Price EarningsMSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • MSI's Enterprise Value to EBITDA is on the same level as the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as MSI.
Industry RankSector Rank
P/FCF 29.79
EV/EBITDA 24.88
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 an expensive valuation of the company.
  • MSI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.98
PEG (5Y)2.02
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 1.04%. Purely for dividend investing, there may be better candidates out there.
  • MSI's Dividend Yield is rather good when compared to the industry average which is at 0.78. MSI pays more dividend than 81.25% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, MSI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.04%

5.2 History

  • The dividend of MSI is nicely growing with an annual growth rate of 11.27%!
  • 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)11.27%
Div Incr Years13
Div Non Decr Years13
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

  • MSI pays out 33.80% 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.
DP33.8%
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 (3/11/2026, 3:42:06 PM)

462.44

-1.67 (-0.36%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners87.89%
Inst Owner Change-1.18%
Ins Owners0.13%
Ins Owner Change9.64%
Market Cap76.61B
Revenue(TTM)11.68B
Net Income(TTM)2.15B
Analysts81.05
Price Target502.86 (8.74%)
Short Float %1.4%
Short Ratio1.83
Dividend
Industry RankSector Rank
Dividend Yield 1.04%
Yearly Dividend4.38
Dividend Growth(5Y)11.27%
DP33.8%
Div Incr Years13
Div Non Decr Years13
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)2.75%
PT rev (3m)0.27%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.72%
Valuation
Industry RankSector Rank
PE 30.03
Fwd PE 27.28
P/S 6.56
P/FCF 29.79
P/OCF 27
P/B 31.79
P/tB N/A
EV/EBITDA 24.88
EPS(TTM)15.4
EY3.33%
EPS(NY)16.95
Fwd EY3.67%
FCF(TTM)15.53
FCFY3.36%
OCF(TTM)17.13
OCFY3.7%
SpS70.52
BVpS14.55
TBVpS-45.24
PEG (NY)2.98
PEG (5Y)2.02
Graham Number71
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 4.02
F-Score6
WACC9.43%
ROIC/WACC1.75
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 Year9.03%
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 Year25.31%
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 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 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 earnings growth outlook for MOTOROLA SOLUTIONS INC?

The Earnings per Share (EPS) of MOTOROLA SOLUTIONS INC (MSI) is expected to grow by 10.07% 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 33.8%.