MOTOROLA SOLUTIONS INC (MSI)
US6200763075 - Common Stock
MSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Communications Equipment industry. MSI scores excellent on profitability, but 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
MSI had positive earnings in the past year.
MSI had a positive operating cash flow in the past year.
In the past 5 years MSI has always been profitable.
In the past 5 years MSI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MSI (10.45%) is better than 92.59% of its industry peers.
MSI's Return On Equity of 267.18% is amongst the best of the industry. MSI outperforms 98.15% of its industry peers.
MSI's Return On Invested Capital of 24.30% is amongst the best of the industry. MSI outperforms 98.15% 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 10.09%.
The last Return On Invested Capital (24.30%) for MSI is above the 3 year average (20.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 267.18% | ||
| ROIC | 24.3% |
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
MSI has a Profit Margin of 13.65%. This is amongst the best in the industry. MSI outperforms 90.74% of its industry peers.
MSI's Profit Margin has improved in the last couple of years.
MSI's Operating Margin of 24.38% is amongst the best of the industry. MSI outperforms 94.44% of its industry peers.
MSI's Operating Margin has improved in the last couple of years.
The Gross Margin of MSI (50.17%) is better than 70.37% of its industry peers.
MSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.38% | ||
| PM (TTM) | 13.65% | ||
| GM | 50.17% |
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 MSI is creating value.
The number of shares outstanding for MSI has been reduced compared to 1 year ago.
MSI has more shares outstanding than it did 5 years ago.
MSI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.45 indicates that MSI is not in any danger for bankruptcy at the moment.
MSI's Altman-Z score of 4.45 is amongst the best of the industry. MSI outperforms 88.89% of its industry peers.
The Debt to FCF ratio of MSI is 2.88, which is a good value as it means it would take MSI, 2.88 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.88, MSI is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
MSI has a Debt/Equity ratio of 11.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 11.50, MSI is doing worse than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.5 | ||
| Debt/FCF | 2.88 | ||
| Altman-Z | 4.45 |
ROIC/WACC2.68
WACC9.06%
2.3 Liquidity
MSI has a Current Ratio of 1.19. 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 (1.19) than 79.63% of its industry peers.
MSI has a Quick Ratio of 1.01. 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 Quick ratio value of 1.01, MSI is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.24% over the past year.
MSI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.90% yearly.
Looking at the last year, MSI shows a quite strong growth in Revenue. The Revenue has grown by 8.58% in the last year.
MSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.32% yearly.
EPS 1Y (TTM)15.24%
EPS 3Y15.86%
EPS 5Y10.9%
EPS growth Q2Q26.58%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y10.41%
Revenue growth 5Y6.32%
Revenue growth Q2Q10.04%
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 9.84% yearly.
Based on estimates for the next years, MSI will show a small growth in Revenue. The Revenue will grow by 6.20% on average per year.
EPS Next Y7.62%
EPS Next 2Y8.12%
EPS Next 3Y9.07%
EPS Next 5Y9.84%
Revenue Next Year6.58%
Revenue Next 2Y6.18%
Revenue Next 3Y6.26%
Revenue Next 5Y6.2%
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
A Price/Earnings ratio of 29.12 indicates a quite expensive valuation of MSI.
MSI's Price/Earnings ratio is in line with the industry average.
MSI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.91.
The Price/Forward Earnings ratio is 26.15, which means the current valuation is very expensive for MSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MSI is on the same level as its industry peers.
MSI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.12 | ||
| Fwd PE | 26.15 |
4.2 Price Multiples
MSI's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MSI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.74 | ||
| EV/EBITDA | 23.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MSI does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MSI may justify a higher PE ratio.
PEG (NY)3.82
PEG (5Y)2.67
EPS Next 2Y8.12%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, MSI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 17.22, MSI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.09, MSI pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
On average, the dividend of MSI grows each year by 11.19%, which is quite nice.
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)11.19%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
MSI pays out 43.39% of its income as dividend. This is a bit on the high side, but may be sustainable.
MSI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP43.39%
EPS Next 2Y8.12%
EPS Next 3Y9.07%
MOTOROLA SOLUTIONS INC
NYSE:MSI (5/16/2024, 12:45:37 PM)
365.51
+0.48 (+0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap60.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.12 | ||
| Fwd PE | 26.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.82
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.45% | ||
| ROE | 267.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.38% | ||
| PM (TTM) | 13.65% | ||
| GM | 50.17% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 11.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.24%
EPS 3Y15.86%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.58%
Revenue growth 3Y10.41%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y