MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
369.68 USD
+0.18 (+0.05%)
369.68 USD
0 (0%)
Overall MSI gets a fundamental rating of 6 out of 10. We evaluated MSI against 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MSI was profitable.
In the past year MSI had a positive cash flow from operations.
MSI had positive earnings in each of the past 5 years.
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.
With an excellent Return On Equity value of 90.93%, MSI belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
MSI has a better Return On Invested Capital (16.09%) than 91.67% of its industry peers.
MSI had an Average Return On Invested Capital over the past 3 years of 21.45%. This is significantly above the industry average of 12.81%.
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
Looking at the Profit Margin, with a value of 18.70%, 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 Profit Margin of MSI has grown nicely.
MSI has a Operating Margin of 25.00%. This is amongst the best in the industry. MSI outperforms 93.75% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSI is creating value.
The number of shares outstanding for MSI has been increased compared to 1 year ago.
Compared to 5 years ago, MSI has less shares outstanding
Compared to 1 year ago, MSI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.54 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI has a better Altman-Z score (3.54) than 68.75% of its industry peers.
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.
MSI's Debt to FCF ratio of 3.87 is in line compared to the rest of the industry. MSI outperforms 56.25% of its industry peers.
A Debt/Equity ratio of 4.01 is on the high side and indicates that MSI has dependencies on debt financing.
MSI has a worse Debt to Equity ratio (4.01) than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.54 |
ROIC/WACC1.77
WACC9.11%
2.3 Liquidity
A Current Ratio of 1.03 indicates that MSI should not have too much problems paying its short term obligations.
MSI's Current ratio of 1.03 is on the low side compared to the rest of the industry. MSI is outperformed by 89.58% 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.
MSI's Quick ratio of 0.86 is on the low side compared to the rest of the industry. MSI is outperformed by 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.
Looking at the last year, MSI shows a small growth in Revenue. The Revenue has grown by 6.17% in the last 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 Y10.47%
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 24.89 indicates a rather expensive valuation of MSI.
Based on the Price/Earnings ratio, MSI is valued a bit cheaper than 64.58% of the companies in the same industry.
MSI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.53, which indicates a rather expensive current valuation of MSI.
MSI's Price/Forward Earnings ratio is in line with the industry average.
MSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 22.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MSI is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSI indicates a somewhat cheap valuation: MSI is cheaper than 60.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.51 | ||
| EV/EBITDA | 21.62 |
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)2.38
PEG (5Y)2.13
EPS Next 2Y8.91%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
MSI has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MSI has falen by -21.75%. 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 3.35. MSI pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 1.31, MSI pays less dividend than the S&P500 average, which is at 2.32.
| 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 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
33.55% of the earnings are spent on dividend by MSI. This is a low number and sustainable payout ratio.
The dividend of MSI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.55%
EPS Next 2Y8.91%
EPS Next 3Y9.68%
369.68
+0.18 (+0.05%)
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 Cap61.57B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts80
Price Target503.42 (36.18%)
Short Float %1.15%
Short Ratio1.94
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 | 24.89 | ||
| Fwd PE | 22.53 | ||
| P/S | 5.44 | ||
| P/FCF | 25.51 | ||
| P/OCF | 23.23 | ||
| P/B | 26.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.62 |
EPS(TTM)14.85
EY4.02%
EPS(NY)16.41
Fwd EY4.44%
FCF(TTM)14.49
FCFY3.92%
OCF(TTM)15.92
OCFY4.31%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.38
PEG (5Y)2.13
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 | 3.54 |
F-Score6
WACC9.11%
ROIC/WACC1.77
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.