MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MSI - US6200763075 - Common Stock
369.97 USD
-3.77 (-1.01%)
369.87 USD
-0.1 (-0.03%)
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. While showing a medium growth rate, MSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MSI was profitable.
MSI had a positive operating cash flow in the past year.
In the past 5 years MSI has always been profitable.
MSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MSI has a Return On Assets of 11.26%. This is amongst the best in the industry. MSI outperforms 91.67% of its industry peers.
MSI has a better Return On Equity (90.93%) than 97.92% of its industry peers.
MSI's Return On Invested Capital of 16.09% is amongst the best of 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 12.35%.
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
MSI's Profit Margin of 18.70% is amongst the best of the industry. MSI outperforms 93.75% of its industry peers.
In the last couple of years the Profit Margin of MSI has grown nicely.
With an excellent Operating Margin value of 25.00%, 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 Operating Margin of MSI has grown nicely.
Looking at the Gross Margin, with a value of 51.41%, MSI is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
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.
The number of shares outstanding for MSI has been increased compared to 1 year ago.
Compared to 5 years ago, MSI has less shares outstanding
Compared to 1 year ago, MSI has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.57 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI has a Altman-Z score of 3.57. This is in the better half of the industry: MSI outperforms 66.67% 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.
MSI's Debt to FCF ratio of 3.87 is in line compared to the rest of the industry. MSI outperforms 54.17% of its industry peers.
MSI has a Debt/Equity ratio of 4.01. This is a high value indicating a heavy dependency on external financing.
MSI has a Debt to Equity ratio of 4.01. This is amonst the worse of the industry: MSI underperforms 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.01 | ||
| Debt/FCF | 3.87 | ||
| Altman-Z | 3.57 |
ROIC/WACC1.76
WACC9.12%
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's Current ratio of 1.03 is on the low side compared to the rest of the industry. MSI is outperformed by 89.58% of its industry peers.
MSI has a Quick Ratio of 1.03. This is a bad value and indicates that MSI is not financially healthy enough and could expect problems in meeting 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 85.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.47% over the past year.
The Earnings Per Share has been growing by 11.71% on average over the past years. This is quite good.
Looking at the last year, MSI shows a small growth in Revenue. The Revenue has grown by 6.17% in the last 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.
The Revenue is expected to grow by 7.11% on average over the next years.
EPS Next Y10.68%
EPS Next 2Y9.1%
EPS Next 3Y9.68%
EPS Next 5Y10.4%
Revenue Next Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.35%
Revenue Next 5Y7.11%
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
The Price/Earnings ratio is 24.91, which indicates a rather expensive current valuation of MSI.
Compared to the rest of the industry, the Price/Earnings ratio of MSI indicates a somewhat cheap valuation: MSI is cheaper than 64.58% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.38. MSI is around the same levels.
MSI is valuated rather expensively with a Price/Forward Earnings ratio of 22.47.
Based on the Price/Forward Earnings ratio, MSI is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.83. MSI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 22.47 |
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.
MSI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.53 | ||
| EV/EBITDA | 21.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MSI may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)2.13
EPS Next 2Y9.1%
EPS Next 3Y9.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.30%, MSI has a reasonable but not impressive dividend return.
The stock price of MSI dropped by -22.31% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MSI's Dividend Yield is rather good when compared to the industry average which is at 0.75. MSI pays more dividend than 83.33% of the companies in the same industry.
MSI's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of MSI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.55%
EPS Next 2Y9.1%
EPS Next 3Y9.68%
369.97
-3.77 (-1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.32%
Inst Owner Change-2.43%
Ins Owners0.11%
Ins Owner Change-4.86%
Market Cap61.62B
Revenue(TTM)11.31B
Net Income(TTM)2.12B
Analysts78.89
Price Target501.49 (35.55%)
Short Float %1.37%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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)-2.26%
PT rev (3m)-2.15%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.19%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.56%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.91 | ||
| Fwd PE | 22.47 | ||
| P/S | 5.45 | ||
| P/FCF | 25.53 | ||
| P/OCF | 23.24 | ||
| P/B | 26.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.83 |
EPS(TTM)14.85
EY4.01%
EPS(NY)16.46
Fwd EY4.45%
FCF(TTM)14.49
FCFY3.92%
OCF(TTM)15.92
OCFY4.3%
SpS67.93
BVpS13.97
TBVpS-45.51
PEG (NY)2.33
PEG (5Y)2.13
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
WACC9.12%
ROIC/WACC1.76
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 Y10.68%
EPS Next 2Y9.1%
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 Year7.78%
Revenue Next 2Y8.01%
Revenue Next 3Y7.35%
Revenue Next 5Y7.11%
EBIT growth 1Y5.09%
EBIT growth 3Y16.07%
EBIT growth 5Y10.49%
EBIT Next Year23.49%
EBIT Next 3Y13.61%
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 3 / 10 to MOTOROLA SOLUTIONS INC (MSI). This can be considered as Overvalued.
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 10.68% in the next year.