MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - NYSE:MSI - US6200763075 - Common Stock
474.55 USD
-3.3 (-0.69%)
474.55 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. MSI has an excellent profitability rating, but 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.
Each year in the past 5 years MSI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MSI (12.89%) is better than 91.67% of its industry peers.
Looking at the Return On Equity, with a value of 107.52%, MSI belongs to the top of the industry, outperforming 97.92% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.65%, MSI belongs to the top 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 13.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 107.52% | ||
| ROIC | 18.65% |
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 19.07%, 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 25.09%, MSI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
MSI's Operating Margin has improved in the last couple of years.
MSI's Gross Margin of 51.33% is fine compared to the rest of the industry. MSI outperforms 70.83% 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 | 25.09% | ||
| PM (TTM) | 19.07% | ||
| GM | 51.33% |
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
The number of shares outstanding for MSI has been reduced compared to 5 years ago.
The debt/assets ratio for MSI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.98 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI has a Altman-Z score of 4.98. This is in the better half of the industry: MSI outperforms 79.17% of its industry peers.
MSI has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as MSI would need 3.24 years to pay back of all of its debts.
MSI has a Debt to FCF ratio of 3.24. This is comparable to the rest of the industry: MSI outperforms 52.08% of its industry peers.
A Debt/Equity ratio of 3.89 is on the high side and indicates that MSI has dependencies on debt financing.
The Debt to Equity ratio of MSI (3.89) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.91
WACC9.78%
2.3 Liquidity
MSI has a Current Ratio of 1.73. 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 Current ratio (1.73) than 60.42% of its industry peers.
MSI has a Quick Ratio of 1.54. 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 Quick ratio (1.54) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
MSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.58%, which is quite good.
The Earnings Per Share has been growing by 11.71% on average over the past years. This is quite good.
MSI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
The Revenue has been growing slightly by 6.52% on average over the past years.
EPS 1Y (TTM)10.58%
EPS 3Y14.8%
EPS 5Y11.71%
EPS Q2Q%10.19%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%5.21%
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 10.04% yearly.
Based on estimates for the next years, MSI will show a small growth in Revenue. The Revenue will grow by 6.86% on average per year.
EPS Next Y9.12%
EPS Next 2Y8.44%
EPS Next 3Y9.77%
EPS Next 5Y10.04%
Revenue Next Year7.8%
Revenue Next 2Y7.72%
Revenue Next 3Y7.51%
Revenue Next 5Y6.86%
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 32.66, MSI can be considered very expensive at the moment.
MSI's Price/Earnings ratio is a bit cheaper when compared to the industry. MSI is cheaper than 60.42% 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 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.18, the valuation of MSI can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MSI.
When comparing the Price/Forward Earnings ratio of MSI to the average of the S&P500 Index (22.88), we can say MSI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 29.18 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA is on the same level as the industry average.
MSI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.16 | ||
| EV/EBITDA | 26.96 |
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)3.58
PEG (5Y)2.79
EPS Next 2Y8.44%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
MSI has a yearly dividend return of 0.89%, which is pretty low.
MSI's Dividend Yield is rather good when compared to the industry average which is at 3.64. MSI pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 0.89, MSI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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 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
32.70% 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.
DP32.7%
EPS Next 2Y8.44%
EPS Next 3Y9.77%
474.55
-3.3 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.72%
Inst Owner Change-0.72%
Ins Owners0.12%
Ins Owner Change-4.6%
Market Cap79.06B
Analysts81.11
Price Target512.51 (8%)
Short Float %1.48%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend3.92
Dividend Growth(5Y)11.64%
DP32.7%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.07%
Min EPS beat(2)4.64%
Max EPS beat(2)5.5%
EPS beat(4)4
Avg EPS beat(4)5.71%
Min EPS beat(4)3%
Max EPS beat(4)9.69%
EPS beat(8)8
Avg EPS beat(8)6.32%
EPS beat(12)12
Avg EPS beat(12)5.78%
EPS beat(16)16
Avg EPS beat(16)6.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.25%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)0.25%
Revenue beat(8)6
Avg Revenue beat(8)0.16%
Revenue beat(12)10
Avg Revenue beat(12)0.87%
Revenue beat(16)13
Avg Revenue beat(16)1.02%
PT rev (1m)1.42%
PT rev (3m)1.42%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)1.56%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)2.09%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 29.18 | ||
| P/S | 7.13 | ||
| P/FCF | 33.16 | ||
| P/OCF | 30.27 | ||
| P/B | 40.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.96 |
EPS(TTM)14.53
EY3.06%
EPS(NY)16.26
Fwd EY3.43%
FCF(TTM)14.31
FCFY3.02%
OCF(TTM)15.68
OCFY3.3%
SpS66.59
BVpS11.81
TBVpS-19.41
PEG (NY)3.58
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 107.52% | ||
| ROCE | 23.3% | ||
| ROIC | 18.65% | ||
| ROICexc | 25.49% | ||
| ROICexgc | 62.93% | ||
| OM | 25.09% | ||
| PM (TTM) | 19.07% | ||
| GM | 51.33% | ||
| FCFM | 21.49% |
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%
ROICexcg growth 3Y14.88%
ROICexcg 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-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 3.24 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 67.66% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 9.91 | ||
| Cash Conversion | 83.69% | ||
| Profit Quality | 112.67% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 4.98 |
F-Score7
WACC9.78%
ROIC/WACC1.91
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)10.58%
EPS 3Y14.8%
EPS 5Y11.71%
EPS Q2Q%10.19%
EPS Next Y9.12%
EPS Next 2Y8.44%
EPS Next 3Y9.77%
EPS Next 5Y10.04%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%5.21%
Revenue Next Year7.8%
Revenue Next 2Y7.72%
Revenue Next 3Y7.51%
Revenue Next 5Y6.86%
EBIT growth 1Y6.5%
EBIT growth 3Y16.07%
EBIT growth 5Y10.49%
EBIT Next Year19.26%
EBIT Next 3Y11.75%
EBIT Next 5Y9.24%
FCF growth 1Y59.36%
FCF growth 3Y10.21%
FCF growth 5Y6.26%
OCF growth 1Y49.6%
OCF growth 3Y9.18%
OCF growth 5Y5.57%