MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
NYSE:MSI - US6200763075 - Common Stock
478.98 USD
+0.36 (+0.08%)
478.98 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. While MSI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MSI 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 MSI was profitable.
In the past year MSI had a positive cash flow from operations.
MSI had positive earnings in each of the past 5 years.
In the past 5 years MSI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.89%, MSI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Equity value of 107.52%, MSI belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
MSI's Return On Invested Capital of 18.65% is amongst the best of the industry. MSI outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MSI is significantly above the industry average of 13.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 107.52% | ||
| ROIC | 18.65% |
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 has a better Profit Margin (19.07%) than 93.75% of its industry peers.
MSI's Profit Margin has improved in the last couple of years.
The Operating Margin of MSI (25.09%) is better than 93.75% of its industry peers.
MSI's Operating Margin has improved in the last couple of years.
MSI has a better Gross Margin (51.33%) than 70.83% of its industry peers.
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 | 25.09% | ||
| PM (TTM) | 19.07% | ||
| GM | 51.33% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MSI is creating value.
Compared to 1 year ago, MSI has more shares outstanding
Compared to 5 years ago, MSI has less shares outstanding
The debt/assets ratio for MSI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.99 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI has a better Altman-Z score (4.99) than 79.17% of its industry peers.
The Debt to FCF ratio of MSI is 3.24, which is a good value as it means it would take MSI, 3.24 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.24, MSI perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
MSI has a Debt/Equity ratio of 3.89. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MSI (3.89) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 4.99 |
ROIC/WACC1.93
WACC9.65%
2.3 Liquidity
MSI has a Current Ratio of 1.73. 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 Current ratio of 1.73. This is in the lower half of the industry: MSI underperforms 60.42% of its industry peers.
MSI has a Quick Ratio of 1.54. 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 Quick ratio of 1.54. This is comparable to the rest of the industry: MSI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.54 |
3. Growth
3.1 Past
MSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.58%, 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 6.45% in the past year.
The Revenue has been growing slightly by 6.52% on average over the past years.
EPS 1Y (TTM)10.58%
EPS 3Y14.8%
EPS 5Y11.71%
EPS Q2Q%10.19%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%5.21%
3.2 Future
Based on estimates for the next years, MSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.04% on average per year.
The Revenue is expected to grow by 6.86% on average over the next years.
EPS Next Y9.12%
EPS Next 2Y8.44%
EPS Next 3Y9.77%
EPS Next 5Y10.04%
Revenue Next Year7.62%
Revenue Next 2Y7.54%
Revenue Next 3Y7.59%
Revenue Next 5Y6.86%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 32.96, the valuation of MSI can be described as expensive.
MSI's Price/Earnings ratio is a bit cheaper when compared to the industry. MSI is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. MSI is valued slightly more expensive when compared to this.
MSI is valuated quite expensively with a Price/Forward Earnings ratio of 29.45.
The rest of the industry has a similar Price/Forward Earnings ratio as MSI.
When comparing the Price/Forward Earnings ratio of MSI to the average of the S&P500 Index (22.69), we can say MSI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 29.45 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA is on the same level as the industry average.
MSI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.47 | ||
| EV/EBITDA | 27.02 |
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)3.62
PEG (5Y)2.82
EPS Next 2Y8.44%
EPS Next 3Y9.77%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, MSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.68, MSI pays a better dividend. On top of this MSI pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of MSI is nicely growing with an annual growth rate of 11.64%!
MSI has paid a dividend for at least 10 years, which is 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
32.70% of the earnings are spent on dividend by MSI. This is a low number and sustainable payout ratio.
The dividend of MSI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP32.7%
EPS Next 2Y8.44%
EPS Next 3Y9.77%
478.98
+0.36 (+0.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.72%
Inst Owner Change-0.72%
Ins Owners0.12%
Ins Owner Change-6.36%
Market Cap79.80B
Analysts81.11
Price Target512.51 (7%)
Short Float %1.63%
Short Ratio2.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend3.92
Dividend Growth(5Y)11.64%
DP32.7%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.07%
Min EPS beat(2)4.64%
Max EPS beat(2)5.5%
EPS beat(4)4
Avg EPS beat(4)5.71%
Min EPS beat(4)3%
Max EPS beat(4)9.69%
EPS beat(8)8
Avg EPS beat(8)6.32%
EPS beat(12)12
Avg EPS beat(12)5.78%
EPS beat(16)16
Avg EPS beat(16)6.01%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.25%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)0.25%
Revenue beat(8)6
Avg Revenue beat(8)0.16%
Revenue beat(12)10
Avg Revenue beat(12)0.87%
Revenue beat(16)13
Avg Revenue beat(16)1.02%
PT rev (1m)1.56%
PT rev (3m)1.42%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)-0.77%
EPS NY rev (1m)1.56%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)2.1%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)1.93%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 29.45 | ||
| P/S | 7.19 | ||
| P/FCF | 33.47 | ||
| P/OCF | 30.55 | ||
| P/B | 40.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.02 |
EPS(TTM)14.53
EY3.03%
EPS(NY)16.26
Fwd EY3.4%
FCF(TTM)14.31
FCFY2.99%
OCF(TTM)15.68
OCFY3.27%
SpS66.59
BVpS11.81
TBVpS-19.41
PEG (NY)3.62
PEG (5Y)2.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 107.52% | ||
| ROCE | 23.3% | ||
| ROIC | 18.65% | ||
| ROICexc | 25.49% | ||
| ROICexgc | 62.93% | ||
| OM | 25.09% | ||
| PM (TTM) | 19.07% | ||
| GM | 51.33% | ||
| FCFM | 21.49% |
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%
ROICexcg growth 3Y14.88%
ROICexcg 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-Score7
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.89 | ||
| Debt/FCF | 3.24 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 67.66% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 9.91 | ||
| Cash Conversion | 83.69% | ||
| Profit Quality | 112.67% | ||
| Current Ratio | 1.73 | ||
| Quick Ratio | 1.54 | ||
| Altman-Z | 4.99 |
F-Score7
WACC9.65%
ROIC/WACC1.93
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)10.58%
EPS 3Y14.8%
EPS 5Y11.71%
EPS Q2Q%10.19%
EPS Next Y9.12%
EPS Next 2Y8.44%
EPS Next 3Y9.77%
EPS Next 5Y10.04%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%5.21%
Revenue Next Year7.62%
Revenue Next 2Y7.54%
Revenue Next 3Y7.59%
Revenue Next 5Y6.86%
EBIT growth 1Y6.5%
EBIT growth 3Y16.07%
EBIT growth 5Y10.49%
EBIT Next Year19.26%
EBIT Next 3Y11.75%
EBIT Next 5Y9.24%
FCF growth 1Y59.36%
FCF growth 3Y10.21%
FCF growth 5Y6.26%
OCF growth 1Y49.6%
OCF growth 3Y9.18%
OCF growth 5Y5.57%