MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
371.49 USD
-4.2 (-1.12%)
371.8 USD
+0.31 (+0.08%)
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 has a great profitability rating, there are some minor concerns on its financial health. MSI is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSI was profitable.
MSI had a positive operating cash flow in the past year.
Each year in the past 5 years MSI has been profitable.
MSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.26%, MSI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 90.93%, MSI belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
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.
MSI had an Average Return On Invested Capital over the past 3 years of 21.45%. This is significantly above the industry average of 12.32%.
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.
In the last couple of years the Profit Margin of MSI has grown nicely.
Looking at the Operating Margin, with a value of 25.00%, MSI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of MSI has grown nicely.
With a decent Gross Margin value of 51.41%, MSI is doing good in the industry, outperforming 70.83% of the companies in the same industry.
MSI's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, MSI has more shares outstanding
Compared to 5 years ago, MSI has less shares outstanding
The debt/assets ratio for MSI has been reduced compared to a year ago.
2.2 Solvency
MSI has an Altman-Z score of 3.58. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MSI (3.58) is better than 70.83% of its industry peers.
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.
MSI has a Debt to FCF ratio (3.87) which is in line with its industry peers.
MSI has a Debt/Equity ratio of 4.01. This is a high value indicating a heavy dependency on external financing.
MSI has a Debt to Equity ratio of 4.01. This is amonst the worse of the industry: MSI underperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.79
WACC9.01%
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 89.58% of its industry peers.
A Quick Ratio of 0.86 indicates that MSI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.86, MSI is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.47% 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 11.71% on average per year.
The Revenue has been growing slightly by 6.17% in the past year.
Measured over the past years, MSI shows a small growth in Revenue. The Revenue has been growing by 6.52% on average per year.
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.
MSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.11% yearly.
EPS Next Y10.47%
EPS Next 2Y8.91%
EPS Next 3Y9.68%
EPS Next 5Y10.4%
Revenue Next Year8.31%
Revenue Next 2Y7.59%
Revenue Next 3Y7.36%
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.
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 25.02 indicates a quite expensive valuation of MSI.
Compared to the rest of the industry, the Price/Earnings ratio of MSI indicates a somewhat cheap valuation: MSI is cheaper than 64.58% of the companies listed in the same industry.
MSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
The Price/Forward Earnings ratio is 22.64, which indicates a rather expensive current valuation of MSI.
MSI's Price/Forward Earnings is on the same level as the industry average.
MSI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 22.64 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA is on the same level as the industry average.
60.42% 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 | 25.63 | ||
| EV/EBITDA | 21.93 |
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)2.39
PEG (5Y)2.14
EPS Next 2Y8.91%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
MSI has a Yearly Dividend Yield of 1.31%.
In the last 3 months the price of MSI has falen by -22.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.35, MSI pays a better dividend. On top of this MSI pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of MSI grows each year by 11.64%, which is quite nice.
MSI has been paying a dividend for at least 10 years, so it has 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.
MSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP33.55%
EPS Next 2Y8.91%
EPS Next 3Y9.68%
371.49
-4.2 (-1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change-2.45%
Ins Owners0.11%
Ins Owner Change-4.86%
Market Cap61.87B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts80
Price Target503.42 (35.51%)
Short Float %1.27%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-1.59%
PT rev (3m)-1.07%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)1.09%
EPS NY rev (3m)1.24%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.02 | ||
| Fwd PE | 22.64 | ||
| P/S | 5.47 | ||
| P/FCF | 25.63 | ||
| P/OCF | 23.34 | ||
| P/B | 26.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.93 |
EPS(TTM)14.85
EY4%
EPS(NY)16.41
Fwd EY4.42%
FCF(TTM)14.49
FCFY3.9%
OCF(TTM)15.92
OCFY4.28%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.39
PEG (5Y)2.14
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 | 3.58 |
F-Score6
WACC9.01%
ROIC/WACC1.79
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 Y10.47%
EPS Next 2Y8.91%
EPS Next 3Y9.68%
EPS Next 5Y10.4%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%7.85%
Revenue Next Year8.31%
Revenue Next 2Y7.59%
Revenue Next 3Y7.36%
Revenue Next 5Y7.11%
EBIT growth 1Y5.09%
EBIT growth 3Y16.07%
EBIT growth 5Y10.49%
EBIT Next Year23%
EBIT Next 3Y13.57%
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 4 / 10 to MOTOROLA SOLUTIONS INC (MSI). This can be considered as Fairly Valued.
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 10.47% in the next year.