MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
374.39 USD
+2.9 (+0.78%)
374.39 USD
0 (0%)
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. While showing a medium growth rate, MSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MSI was profitable.
MSI had a positive operating cash flow in the past year.
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.
1.2 Ratios
MSI's Return On Assets of 11.26% is amongst the best of the industry. MSI outperforms 91.67% of its industry peers.
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.
The Return On Invested Capital of MSI (16.09%) is better than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MSI is significantly above the industry average of 12.31%.
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
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.
MSI's Gross Margin of 51.41% is fine compared to the rest of the industry. MSI outperforms 70.83% of its industry peers.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSI is creating value.
MSI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MSI has been reduced compared to 5 years ago.
Compared to 1 year ago, MSI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.57 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI's Altman-Z score of 3.57 is fine compared to the rest of the industry. MSI outperforms 66.67% 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 comparable to the rest of the industry.
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 | 3.57 |
ROIC/WACC1.75
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.03 indicates that MSI should not have too much problems paying its short term obligations.
MSI has a Current ratio of 1.03. This is amonst the worse of the industry: MSI underperforms 89.58% of its industry peers.
A Quick Ratio of 0.86 indicates that MSI may have some problems paying its short term obligations.
MSI has a worse Quick ratio (0.86) than 85.42% 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.
MSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.71% yearly.
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
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.
The Revenue is expected to grow by 7.11% on average over the next years.
EPS Next Y10.68%
EPS Next 2Y9.1%
EPS Next 3Y9.68%
EPS Next 5Y10.4%
Revenue Next Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.35%
Revenue Next 5Y7.11%
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
With a Price/Earnings ratio of 25.21, MSI can be considered very expensive at the moment.
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.
When comparing the Price/Earnings ratio of MSI to the average of the S&P500 Index (26.49), we can say MSI is valued inline with the index average.
The Price/Forward Earnings ratio is 22.74, which indicates a rather expensive current valuation of MSI.
60.42% of the companies in the same industry are more expensive than MSI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.69. MSI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 22.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSI.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.83 | ||
| EV/EBITDA | 21.86 |
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)2.36
PEG (5Y)2.15
EPS Next 2Y9.1%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
MSI has a Yearly Dividend Yield of 1.30%.
In the last 3 months the price of MSI has falen by -21.84%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MSI's Dividend Yield is rather good when compared to the industry average which is at 3.36. MSI pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 1.30, MSI pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
5.2 History
The dividend of MSI is nicely growing with an annual growth rate of 11.64%!
MSI has paid a dividend for at least 10 years, which is 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 2Y9.1%
EPS Next 3Y9.68%
374.39
+2.9 (+0.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.32%
Inst Owner Change-2.43%
Ins Owners0.11%
Ins Owner Change-4.86%
Market Cap62.35B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts78.89
Price Target501.49 (33.95%)
Short Float %1.27%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)-2.26%
PT rev (3m)-2.15%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.19%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 22.74 | ||
| P/S | 5.51 | ||
| P/FCF | 25.83 | ||
| P/OCF | 23.52 | ||
| P/B | 26.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.86 |
EPS(TTM)14.85
EY3.97%
EPS(NY)16.46
Fwd EY4.4%
FCF(TTM)14.49
FCFY3.87%
OCF(TTM)15.92
OCFY4.25%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.36
PEG (5Y)2.15
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 | 3.57 |
F-Score6
WACC9.18%
ROIC/WACC1.75
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 2Y9.1%
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 Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.35%
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.
Can you provide the valuation status for MOTOROLA SOLUTIONS INC?
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 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 10.68% in the next year.