Exploring MOTOROLA SOLUTIONS INC (NYSE:MSI)s quality characteristics.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MOTOROLA SOLUTIONS INC (NYSE:MSI) is suited for quality investing. Investors should of course do their own research, but we spotted MOTOROLA SOLUTIONS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of MOTOROLA SOLUTIONS INC

• MOTOROLA SOLUTIONS INC has achieved substantial revenue growth over the past 5 years, with a 6.32% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 76.24%, MOTOROLA SOLUTIONS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a Debt/Free Cash Flow Ratio of 2.59, MOTOROLA SOLUTIONS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a favorable Profit Quality (5-year) ratio of 135.0%, MOTOROLA SOLUTIONS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 11.92%, MOTOROLA SOLUTIONS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of MOTOROLA SOLUTIONS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall MSI gets a fundamental rating of 6 out of 10. We evaluated MSI against 52 industry peers in the Communications Equipment industry. While MSI has a great profitability rating, there are some minor concerns on its financial health. MSI is not valued too expensively and it also shows a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of MSI

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.