MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
373.35 USD
+3.67 (+0.99%)
373.35 USD
0 (0%)
MSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years MSI has always been profitable.
In the past 5 years MSI always reported a positive cash flow from operatings.
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.
MSI has a Return On Invested Capital of 16.09%. This is amongst the best in the industry. MSI outperforms 91.67% 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 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.
MSI's Profit Margin has improved in the last couple of years.
MSI has a Operating Margin of 25.00%. This is amongst the best in the industry. MSI outperforms 93.75% of its industry peers.
MSI's Operating Margin has improved in the last couple of years.
The Gross Margin of MSI (51.41%) is better than 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
MSI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MSI has more shares outstanding than it did 1 year ago.
MSI has less shares outstanding than it did 5 years ago.
MSI has a better debt/assets ratio than last year.
2.2 Solvency
MSI has an Altman-Z score of 3.57. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
MSI has a better Altman-Z score (3.57) than 68.75% 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.
The Debt to FCF ratio of MSI (3.87) 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.
With a Debt to Equity ratio value of 4.01, MSI is not doing good in the industry: 93.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.57 |
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.
With a Current ratio value of 1.03, MSI is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that MSI may have some problems paying its short term obligations.
MSI has a Quick ratio of 0.86. This is amonst the worse of the industry: MSI underperforms 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.
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.
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
MSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.40% yearly.
Based on estimates for the next years, MSI will show a small growth in Revenue. The Revenue will grow by 7.11% on average per year.
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
Based on the Price/Earnings ratio of 25.14, the valuation of MSI can be described as expensive.
64.58% of the companies in the same industry are more expensive than MSI, based on the Price/Earnings ratio.
MSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.11.
MSI is valuated rather expensively with a Price/Forward Earnings ratio of 22.76.
MSI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.21. MSI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.14 | ||
| Fwd PE | 22.76 |
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 | 25.76 | ||
| EV/EBITDA | 21.81 |
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)2.4
PEG (5Y)2.15
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 -22.05%. 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 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
33.55% of the earnings are spent on dividend by MSI. This is a low number and 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%
373.35
+3.67 (+0.99%)
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 Cap62.18B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts80
Price Target503.42 (34.84%)
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 | 25.14 | ||
| Fwd PE | 22.76 | ||
| P/S | 5.5 | ||
| P/FCF | 25.76 | ||
| P/OCF | 23.46 | ||
| P/B | 26.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.81 |
EPS(TTM)14.85
EY3.98%
EPS(NY)16.41
Fwd EY4.39%
FCF(TTM)14.49
FCFY3.88%
OCF(TTM)15.92
OCFY4.26%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.4
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
WACC9.11%
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.