MOTOROLA SOLUTIONS INC (MSI) Stock Fundamental Analysis
USA - NYSE:MSI - US6200763075 - Common Stock
444.83 USD
-2.03 (-0.45%)
444.83 USD
0 (0%)
Overall MSI gets a fundamental rating of 6 out of 10. We evaluated MSI against 48 industry peers in the Communications Equipment industry. MSI has an excellent profitability rating, but there are some minor concerns on its financial health. MSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MSI had positive earnings in the past year.
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
With an excellent Return On Assets value of 12.89%, MSI belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Return On Equity of MSI (107.52%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 18.65%, MSI belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MSI is significantly above the industry average of 13.08%.
| 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
The Profit Margin of MSI (19.07%) is better than 93.75% of its industry peers.
MSI's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 25.09%, MSI belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
MSI's Operating Margin has improved in the last couple of years.
MSI's Gross Margin of 51.33% is fine compared to the rest of the industry. MSI outperforms 70.83% of its industry peers.
MSI's Gross Margin has been stable in the last couple of years.
| 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.
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
MSI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.77 indicates that MSI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.77, MSI is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
MSI has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as MSI would need 3.24 years to pay back of all of its debts.
MSI's Debt to FCF ratio of 3.24 is in line compared to the rest of the industry. MSI outperforms 52.08% of its industry peers.
MSI has a Debt/Equity ratio of 3.89. This is a high value indicating a heavy dependency on external financing.
MSI's Debt to Equity ratio of 3.89 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 | 3.89 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | 4.77 |
ROIC/WACC2.08
WACC8.97%
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.
With a Current ratio value of 1.73, MSI is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
A Quick Ratio of 1.54 indicates that MSI should not have too much problems paying 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.
MSI shows a small growth in Revenue. In the last year, the Revenue has grown by 6.45%.
MSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.52% yearly.
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.
MSI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.86% yearly.
EPS Next Y9.28%
EPS Next 2Y8.52%
EPS Next 3Y9.78%
EPS Next 5Y10.04%
Revenue Next Year7.69%
Revenue Next 2Y7.59%
Revenue Next 3Y7.42%
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.
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 30.61, the valuation of MSI can be described as expensive.
Based on the Price/Earnings ratio, MSI is valued a bit cheaper than the industry average as 60.42% of the companies are valued more expensively.
MSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.57.
The Price/Forward Earnings ratio is 27.31, which means the current valuation is very expensive for MSI.
MSI's Price/Forward Earnings ratio is in line with the industry average.
MSI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.61 | ||
| Fwd PE | 27.31 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MSI is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.09 | ||
| EV/EBITDA | 25.3 |
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)3.3
PEG (5Y)2.61
EPS Next 2Y8.52%
EPS Next 3Y9.78%
5. Dividend
5.1 Amount
MSI has a yearly dividend return of 1.00%, which is pretty low.
MSI's Dividend Yield is rather good when compared to the industry average which is at 3.55. MSI pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
On average, the dividend of MSI grows each year by 11.64%, which is quite nice.
MSI has paid a dividend for at least 10 years, which is 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
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 2Y8.52%
EPS Next 3Y9.78%
444.83
-2.03 (-0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners88.19%
Inst Owner Change0.66%
Ins Owners0.11%
Ins Owner Change-4.6%
Market Cap74.11B
Revenue(TTM)11.09B
Net Income(TTM)2.12B
Analysts80
Price Target511.56 (15%)
Short Float %1.56%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)-0.19%
PT rev (3m)1.37%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)0.14%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.2%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.61 | ||
| Fwd PE | 27.31 | ||
| P/S | 6.68 | ||
| P/FCF | 31.09 | ||
| P/OCF | 28.37 | ||
| P/B | 37.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.3 |
EPS(TTM)14.53
EY3.27%
EPS(NY)16.29
Fwd EY3.66%
FCF(TTM)14.31
FCFY3.22%
OCF(TTM)15.68
OCFY3.52%
SpS66.59
BVpS11.81
TBVpS-19.41
PEG (NY)3.3
PEG (5Y)2.61
Graham Number62.14
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%
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-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 | 4.77 |
F-Score7
WACC8.97%
ROIC/WACC2.08
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 Y9.28%
EPS Next 2Y8.52%
EPS Next 3Y9.78%
EPS Next 5Y10.04%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y9.8%
Revenue growth 5Y6.52%
Sales Q2Q%5.21%
Revenue Next Year7.69%
Revenue Next 2Y7.59%
Revenue Next 3Y7.42%
Revenue Next 5Y6.86%
EBIT growth 1Y6.5%
EBIT growth 3Y16.07%
EBIT growth 5Y10.49%
EBIT Next Year23%
EBIT Next 3Y13.57%
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%