MOTOROLA SOLUTIONS INC (MSI)
US6200763075 - Common Stock
MSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 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. While showing a medium growth rate, MSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MSI had positive earnings in the past year.
MSI had a positive operating cash flow in the past year.
MSI had positive earnings in each of the past 5 years.
MSI had a positive operating cash flow in each of the past 5 years.
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.
MSI has a better Return On Equity (117.80%) than 98.04% of its industry peers.
MSI has a Return On Invested Capital of 24.81%. This is amongst the best in 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 10.16%.
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
Looking at the Profit Margin, with a value of 14.66%, MSI belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
MSI's Profit Margin has improved in the last couple of years.
The Operating Margin of MSI (25.25%) is better than 96.08% of its industry peers.
In the last couple of years the Operating Margin of MSI has grown nicely.
The Gross Margin of MSI (50.85%) is better than 68.63% 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.
Compared to 1 year ago, MSI has less shares outstanding
Compared to 5 years ago, MSI has more shares outstanding
Compared to 1 year ago, MSI has an improved debt to assets ratio.
2.2 Solvency
MSI has an Altman-Z score of 5.65. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
MSI's Altman-Z score of 5.65 is amongst the best of the industry. MSI outperforms 90.20% of its industry peers.
MSI has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as MSI would need 2.59 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.59, MSI is doing good in the industry, outperforming 64.71% of the companies in the same industry.
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 86.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 5.65 |
ROIC/WACC2.67
WACC9.31%
2.3 Liquidity
A Current Ratio of 1.25 indicates that MSI should not have too much problems paying its short term obligations.
MSI's Current ratio of 1.25 is on the low side compared to the rest of the industry. MSI is outperformed by 82.35% 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 worse Quick ratio (1.07) than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
MSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.41%, which is quite good.
The Earnings Per Share has been growing by 10.90% on average over the past years. This is quite good.
The Revenue has grown by 8.33% in the past year. This is quite good.
MSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.32% yearly.
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
Based on estimates for the next years, MSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.82% on average per year.
Based on estimates for the next years, MSI will show a small growth in Revenue. The Revenue will grow by 6.29% on average per year.
EPS Next Y13.13%
EPS Next 2Y10.85%
EPS Next 3Y10.68%
EPS Next 5Y10.82%
Revenue Next Year8.65%
Revenue Next 2Y7.35%
Revenue Next 3Y6.9%
Revenue Next 5Y6.29%
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.
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
A Price/Earnings ratio of 36.59 indicates a quite expensive valuation of MSI.
Based on the Price/Earnings ratio, MSI is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MSI to the average of the S&P500 Index (29.20), we can say MSI is valued slightly more expensively.
A Price/Forward Earnings ratio of 34.08 indicates a quite expensive valuation of MSI.
The rest of the industry has a similar Price/Forward Earnings ratio as MSI.
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 | 36.59 | ||
| Fwd PE | 34.08 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MSI is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.18 | ||
| EV/EBITDA | 28.85 |
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)2.79
PEG (5Y)3.36
EPS Next 2Y10.85%
EPS Next 3Y10.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, MSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 11.68, MSI pays a better dividend. On top of this MSI pays more dividend than 80.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.21, MSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of MSI grows each year by 11.19%, 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.19%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
MSI pays out 40.72% of its income as dividend. This is a bit on the high side, but may be sustainable.
MSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.72%
EPS Next 2Y10.85%
EPS Next 3Y10.68%
MOTOROLA SOLUTIONS INC
NYSE:MSI (11/22/2024, 8:04:00 PM)
After market: 500.9 0 (0%)500.9
+6.06 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap83.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.59 | ||
| Fwd PE | 34.08 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.79
PEG (5Y)3.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 117.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.25% | ||
| PM (TTM) | 14.66% | ||
| GM | 50.85% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.41%
EPS 3Y15.86%
EPS 5Y
EPS Q2Q%
EPS Next Y13.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.33%
Revenue growth 3Y10.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y