MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - NYSE:MSI - US6200763075 - Common Stock
379.98 USD
-3.4 (-0.89%)
379.98 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 scores excellent on profitability, 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
In the past year MSI was profitable.
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
Looking at the Return On Assets, with a value of 11.26%, MSI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
MSI has a Return On Equity of 90.93%. This is amongst the best in the industry. MSI outperforms 97.92% of its industry peers.
The Return On Invested Capital of MSI (16.09%) is better 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 12.74%.
The 3 year average ROIC (21.45%) for MSI is well above the current ROIC(16.09%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of MSI (18.70%) is better than 93.75% of its industry peers.
MSI's Profit Margin has improved in the last couple of years.
MSI has a better Operating Margin (25.00%) than 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.
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% | ||
| 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.
Compared to 1 year ago, MSI has more shares outstanding
MSI has less shares outstanding than it did 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 3.61 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI has a better Altman-Z score (3.61) than 70.83% 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 52.08% 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's Debt to Equity ratio of 4.01 is on the low side compared to the rest of the industry. MSI is outperformed by 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.78
WACC9.04%
2.3 Liquidity
MSI has a Current Ratio of 1.03. 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 (1.03) than 87.50% of its industry peers.
A Quick Ratio of 0.86 indicates that MSI may have some problems paying 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 81.25% 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.
MSI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.17%.
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
The Earnings Per Share is expected to grow by 10.40% on average over the next years. This is quite good.
MSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.11% yearly.
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 25.59, the valuation of MSI can be described as expensive.
62.50% 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 25.89.
Based on the Price/Forward Earnings ratio of 23.16, the valuation of MSI can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MSI.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, MSI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 23.16 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA ratio is in line with the industry average.
MSI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MSI is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.22 | ||
| EV/EBITDA | 22.16 |
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)2.44
PEG (5Y)2.19
EPS Next 2Y8.91%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, MSI has a reasonable but not impressive dividend return.
MSI's Dividend Yield is rather good when compared to the industry average which is at 3.28. MSI pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 1.14, MSI pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
MSI pays out 33.55% of its income as dividend. This is a 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%
379.98
-3.4 (-0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change-2.43%
Ins Owners0.11%
Ins Owner Change-13.75%
Market Cap63.30B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts80
Price Target513.09 (35.03%)
Short Float %1.23%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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)0.3%
PT rev (3m)1.53%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)1.09%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)2.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 23.16 | ||
| P/S | 5.6 | ||
| P/FCF | 26.22 | ||
| P/OCF | 23.88 | ||
| P/B | 27.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.16 |
EPS(TTM)14.85
EY3.91%
EPS(NY)16.41
Fwd EY4.32%
FCF(TTM)14.49
FCFY3.81%
OCF(TTM)15.91
OCFY4.19%
SpS67.91
BVpS13.97
TBVpS-45.5
PEG (NY)2.44
PEG (5Y)2.19
Graham Number68.31
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 | 3.61 |
F-Score6
WACC9.04%
ROIC/WACC1.78
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.