MOTOROLA SOLUTIONS INC (1MSI.MI) Stock Fundamental Analysis
BIT:1MSI - US6200763075 - Common Stock
405.7 EUR
-34.4 (-7.82%)
We assign a fundamental rating of 5 out of 10 to 1MSI. 1MSI was compared to 27 industry peers in the Communications Equipment industry. While 1MSI has a great profitability rating, there are some minor concerns on its financial health. 1MSI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MSI was profitable.
In the past year 1MSI had a positive cash flow from operations.
In the past 5 years 1MSI has always been profitable.
In the past 5 years 1MSI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 11.25%, 1MSI belongs to the best of the industry, outperforming 92.59% of the companies in the same industry.
Looking at the Return On Equity, with a value of 117.80%, 1MSI belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MSI has a better Return On Invested Capital (24.81%) than 100.00% of its industry peers.
1MSI had an Average Return On Invested Capital over the past 3 years of 20.80%. This is significantly above the industry average of 12.67%.
The last Return On Invested Capital (24.81%) for 1MSI is above the 3 year average (20.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 117.8% | ||
| ROIC | 24.81% |
ROA(3y)11.22%
ROA(5y)10.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.8%
ROIC(5y)19.59%
1.3 Margins
1MSI has a better Profit Margin (14.66%) than 88.89% of its industry peers.
1MSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.25%, 1MSI belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
1MSI's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 50.85%, 1MSI is doing good in the industry, outperforming 62.96% of the companies in the same industry.
In the last couple of years the Gross Margin of 1MSI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| PM (TTM) | 14.66% | ||
| GM | 50.85% |
OM growth 3Y7.46%
OM growth 5Y5.26%
PM growth 3Y10.19%
PM growth 5Y5.42%
GM growth 3Y0.78%
GM growth 5Y1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MSI is creating value.
The number of shares outstanding for 1MSI has been reduced compared to 1 year ago.
The number of shares outstanding for 1MSI has been increased compared to 5 years ago.
1MSI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.50 indicates that 1MSI is not in any danger for bankruptcy at the moment.
1MSI has a better Altman-Z score (5.50) than 85.19% of its industry peers.
The Debt to FCF ratio of 1MSI is 2.59, which is a good value as it means it would take 1MSI, 2.59 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1MSI (2.59) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 4.28 is on the high side and indicates that 1MSI has dependencies on debt financing.
1MSI's Debt to Equity ratio of 4.28 is on the low side compared to the rest of the industry. 1MSI is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 5.5 |
ROIC/WACC2.57
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.25 indicates that 1MSI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, 1MSI is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
1MSI has a Quick Ratio of 1.07. This is a normal value and indicates that 1MSI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1MSI (1.07) is worse than 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
1MSI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.68%.
1MSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.10% yearly.
The Revenue has grown by 8.33% in the past year. This is quite good.
The Revenue has been growing slightly by 6.32% on average over the past years.
EPS 1Y (TTM)-7.68%
EPS 3Y22.14%
EPS 5Y12.1%
EPS Q2Q%21.85%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y10.41%
Revenue growth 5Y6.32%
Sales Q2Q%9.15%
3.2 Future
The Earnings Per Share is expected to grow by 11.60% on average over the next years. This is quite good.
1MSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y16.77%
EPS Next 2Y11.91%
EPS Next 3Y10.95%
EPS Next 5Y11.6%
Revenue Next Year8.64%
Revenue Next 2Y7.32%
Revenue Next 3Y6.91%
Revenue Next 5Y6.57%
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.
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
With a Price/Earnings ratio of 34.76, 1MSI can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1MSI is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
1MSI is valuated rather expensively when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
1MSI is valuated quite expensively with a Price/Forward Earnings ratio of 32.10.
1MSI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1MSI to the average of the S&P500 Index (22.66), we can say 1MSI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.76 | ||
| Fwd PE | 32.1 |
4.2 Price Multiples
62.96% of the companies in the same industry are cheaper than 1MSI, based on the Enterprise Value to EBITDA ratio.
1MSI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.36 | ||
| EV/EBITDA | 27.8 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MSI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.07
PEG (5Y)2.87
EPS Next 2Y11.91%
EPS Next 3Y10.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, 1MSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.85, 1MSI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, 1MSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
On average, the dividend of 1MSI grows each year by 11.19%, which is quite nice.
Dividend Growth(5Y)11.19%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
40.72% of the earnings are spent on dividend by 1MSI. This is a bit on the high side, but may be sustainable.
1MSI's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP40.72%
EPS Next 2Y11.91%
EPS Next 3Y10.95%
BIT:1MSI (9/5/2025, 7:00:00 PM)
405.7
-34.4 (-7.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.96%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap67.80B
Analysts83.33
Price Target485.23 (19.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend3.52
Dividend Growth(5Y)11.19%
DP40.72%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.17%
Min EPS beat(2)6.65%
Max EPS beat(2)9.69%
EPS beat(4)4
Avg EPS beat(4)8.19%
Min EPS beat(4)6.34%
Max EPS beat(4)10.1%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)0.34%
Min Revenue beat(2)0.07%
Max Revenue beat(2)0.61%
Revenue beat(4)4
Avg Revenue beat(4)0.44%
Min Revenue beat(4)0.07%
Max Revenue beat(4)0.89%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.76 | ||
| Fwd PE | 32.1 | ||
| P/S | 7.46 | ||
| P/FCF | 34.36 | ||
| P/OCF | 30.99 | ||
| P/B | 59.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.8 |
EPS(TTM)11.67
EY2.88%
EPS(NY)12.64
Fwd EY3.12%
FCF(TTM)11.81
FCFY2.91%
OCF(TTM)13.09
OCFY3.23%
SpS54.37
BVpS6.77
TBVpS-17.82
PEG (NY)2.07
PEG (5Y)2.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.25% | ||
| ROE | 117.8% | ||
| ROCE | 29.17% | ||
| ROIC | 24.81% | ||
| ROICexc | 29.27% | ||
| ROICexgc | 76.24% | ||
| OM | 25.25% | ||
| PM (TTM) | 14.66% | ||
| GM | 50.85% | ||
| FCFM | 21.72% |
ROA(3y)11.22%
ROA(5y)10.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)20.8%
ROIC(5y)19.59%
ROICexc(3y)26.29%
ROICexc(5y)24.17%
ROICexgc(3y)94.63%
ROICexgc(5y)75.63%
ROCE(3y)24.45%
ROCE(5y)23.03%
ROICexcg growth 3Y53.44%
ROICexcg growth 5Y26.91%
ROICexc growth 3Y20.22%
ROICexc growth 5Y8.58%
OM growth 3Y7.46%
OM growth 5Y5.26%
PM growth 3Y10.19%
PM growth 5Y5.42%
GM growth 3Y0.78%
GM growth 5Y1%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.28 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 1.88 | ||
| Cap/Depr | 75.22% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 12.69 | ||
| Cash Conversion | 84.8% | ||
| Profit Quality | 148.14% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 5.5 |
F-Score6
WACC9.66%
ROIC/WACC2.57
Cap/Depr(3y)61.58%
Cap/Depr(5y)60.15%
Cap/Sales(3y)2.77%
Cap/Sales(5y)2.88%
Profit Quality(3y)115.93%
Profit Quality(5y)135.27%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.68%
EPS 3Y22.14%
EPS 5Y12.1%
EPS Q2Q%21.85%
EPS Next Y16.77%
EPS Next 2Y11.91%
EPS Next 3Y10.95%
EPS Next 5Y11.6%
Revenue 1Y (TTM)8.33%
Revenue growth 3Y10.41%
Revenue growth 5Y6.32%
Sales Q2Q%9.15%
Revenue Next Year8.64%
Revenue Next 2Y7.32%
Revenue Next 3Y6.91%
Revenue Next 5Y6.57%
EBIT growth 1Y17.46%
EBIT growth 3Y18.65%
EBIT growth 5Y11.92%
EBIT Next Year33.11%
EBIT Next 3Y14.9%
EBIT Next 5Y11.45%
FCF growth 1Y130.94%
FCF growth 3Y8.66%
FCF growth 5Y15.32%
OCF growth 1Y104.79%
OCF growth 3Y8.21%
OCF growth 5Y13.71%