MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
400.61 USD
+6.17 (+1.56%)
393.9 USD
-6.71 (-1.67%)
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. 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
- MSI had positive earnings in the past year.
- 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
- 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 Return On Equity of 90.93%. This is amongst the best in the industry. MSI outperforms 97.92% of its industry peers.
- With an excellent Return On Invested Capital value of 16.09%, MSI belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MSI is significantly above the industry average of 12.15%.
- The last Return On Invested Capital (16.09%) for MSI is well below the 3 year average (21.45%), which needs to be investigated, but indicates that MSI had better years and this may not be a problem.
| 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
- MSI has a Profit Margin of 18.70%. This is amongst the best in the industry. MSI outperforms 93.75% of its industry peers.
- MSI's Profit Margin has improved in the last couple of years.
- MSI has a Operating Margin of 25.00%. This is amongst the best in the industry. MSI outperforms 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.
- 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
- MSI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 3.73. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.73, MSI is doing good in the industry, outperforming 68.75% of the companies in the same industry.
- The Debt to FCF ratio of MSI is 3.87, which is a good value as it means it would take MSI, 3.87 years of fcf income to pay off 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.
- A Debt/Equity ratio of 4.01 is on the high side and indicates that MSI has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 4.01, MSI is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.73 |
ROIC/WACC1.71
WACC9.4%
2.3 Liquidity
- A Current Ratio of 1.03 indicates that MSI should not have too much problems paying its short term obligations.
- The Current ratio of MSI (1.03) is worse than 87.50% 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.
- Measured over the past years, MSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.71% on average per year.
- The Revenue has been growing slightly by 6.17% in the past 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
- MSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.40% yearly.
- 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
- Based on the Price/Earnings ratio of 26.98, the valuation of MSI can be described as expensive.
- Based on the Price/Earnings ratio, MSI is valued a bit cheaper than 68.75% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, MSI is valued at the same level.
- MSI is valuated rather expensively with a Price/Forward Earnings ratio of 24.30.
- MSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MSI is cheaper than 62.50% of the companies in the same industry.
- MSI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.98 | ||
| Fwd PE | 24.3 |
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 | 27.64 | ||
| EV/EBITDA | 23.23 |
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)2.53
PEG (5Y)2.3
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 1.84.
| 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 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)11.64%
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%
400.61
+6.17 (+1.56%)
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 Cap66.72B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts82.22
Price Target495.03 (23.57%)
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 | 26.98 | ||
| Fwd PE | 24.3 | ||
| P/S | 5.9 | ||
| P/FCF | 27.64 | ||
| P/OCF | 25.17 | ||
| P/B | 28.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.23 |
EPS(TTM)14.85
EY3.71%
EPS(NY)16.48
Fwd EY4.11%
FCF(TTM)14.49
FCFY3.62%
OCF(TTM)15.92
OCFY3.97%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.53
PEG (5Y)2.3
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 | 3.73 |
F-Score6
WACC9.4%
ROIC/WACC1.71
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 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 10.68% 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%.