MOTOROLA SOLUTIONS INC (MSI) Fundamental Analysis & Valuation

NYSE:MSI • US6200763075

Current stock price

459.16 USD
-8.12 (-1.74%)
At close:
459.16 USD
0 (0%)
After Hours:

This MSI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. MSI Profitability Analysis

1.1 Basic Checks

  • In the past year MSI was profitable.
  • MSI had a positive operating cash flow in the past year.
  • 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.
MSI Yearly Net Income VS EBIT VS OCF VS FCFMSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 11.11%, MSI belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • MSI has a Return On Equity of 89.38%. This is amongst the best in the industry. MSI outperforms 100.00% of its industry peers.
  • MSI has a better Return On Invested Capital (16.51%) than 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 10.05%.
  • The last Return On Invested Capital (16.51%) for MSI is well below the 3 year average (21.01%), which needs to be investigated, but indicates that MSI had better years and this may not be a problem.
Industry RankSector Rank
ROA 11.11%
ROE 89.38%
ROIC 16.51%
ROA(3y)11.58%
ROA(5y)11.12%
ROE(3y)139.34%
ROE(5y)N/A
ROIC(3y)21.01%
ROIC(5y)19.25%
MSI Yearly ROA, ROE, ROICMSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1K -1K -2K -3K

1.3 Margins

  • MSI has a better Profit Margin (18.44%) than 89.58% of its industry peers.
  • In the last couple of years the Profit Margin of MSI has grown nicely.
  • The Operating Margin of MSI (25.31%) is better than 95.83% of its industry peers.
  • MSI's Operating Margin has improved in the last couple of years.
  • MSI has a Gross Margin of 51.66%. This is in the better half of the industry: MSI outperforms 68.75% 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 RankSector Rank
OM 25.31%
PM (TTM) 18.44%
GM 51.66%
OM growth 3Y9.74%
OM growth 5Y5.85%
PM growth 3Y7.22%
PM growth 5Y7.57%
GM growth 3Y3.64%
GM growth 5Y1.2%
MSI Yearly Profit, Operating, Gross MarginsMSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40 50

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4

2. MSI Health Analysis

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 reduced compared to 1 year ago.
  • Compared to 5 years ago, MSI has less shares outstanding
  • MSI has a worse debt/assets ratio than last year.
MSI Yearly Shares OutstandingMSI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
MSI Yearly Total Debt VS Total AssetsMSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • MSI has an Altman-Z score of 4.04. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
  • MSI has a Altman-Z score of 4.04. This is in the better half of the industry: MSI outperforms 70.83% of its industry peers.
  • The Debt to FCF ratio of MSI is 3.56, which is a good value as it means it would take MSI, 3.56 years of fcf income to pay off all of its debts.
  • MSI has a Debt to FCF ratio of 3.56. This is comparable to the rest of the industry: MSI outperforms 56.25% of its industry peers.
  • A Debt/Equity ratio of 3.80 is on the high side and indicates that MSI has dependencies on debt financing.
  • MSI has a worse Debt to Equity ratio (3.80) than 91.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Altman-Z 4.04
ROIC/WACC1.78
WACC9.29%
MSI Yearly LT Debt VS Equity VS FCFMSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B 4B 6B 8B

2.3 Liquidity

  • MSI has a Current Ratio of 1.04. This is a normal value and indicates that MSI is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of MSI (1.04) is worse than 85.42% of its industry peers.
  • MSI has a Quick Ratio of 1.04. 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 has a Quick ratio of 0.87. This is amonst the worse of the industry: MSI underperforms 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.87
MSI Yearly Current Assets VS Current LiabilitesMSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. MSI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 11.35% 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 14.90% yearly.
  • The Revenue has been growing slightly by 7.99% in the past year.
  • The Revenue has been growing by 9.52% on average over the past years. This is quite good.
EPS 1Y (TTM)11.35%
EPS 3Y14.09%
EPS 5Y14.9%
EPS Q2Q%13.61%
Revenue 1Y (TTM)7.99%
Revenue growth 3Y8.63%
Revenue growth 5Y9.52%
Sales Q2Q%12.29%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.24% 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 6.79% yearly.
EPS Next Y10.07%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
EPS Next 5Y9.24%
Revenue Next Year9.03%
Revenue Next 2Y7.47%
Revenue Next 3Y7%
Revenue Next 5Y6.79%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
MSI Yearly Revenue VS EstimatesMSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
MSI Yearly EPS VS EstimatesMSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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3

4. MSI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 29.82, the valuation of MSI can be described as expensive.
  • Based on the Price/Earnings ratio, MSI is valued a bit cheaper than 66.67% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of MSI to the average of the S&P500 Index (25.73), we can say MSI is valued inline with the index average.
  • Based on the Price/Forward Earnings ratio of 27.09, the valuation of MSI can be described as expensive.
  • 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.
  • When comparing the Price/Forward Earnings ratio of MSI to the average of the S&P500 Index (23.72), we can say MSI is valued inline with the index average.
Industry RankSector Rank
PE 29.82
Fwd PE 27.09
MSI Price Earnings VS Forward Price EarningsMSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • MSI's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MSI is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 29.57
EV/EBITDA 25.03
MSI Per share dataMSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 -40 60

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.
  • MSI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.96
PEG (5Y)2
EPS Next 2Y9.16%
EPS Next 3Y9.08%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. MSI Dividend Analysis

5.1 Amount

  • MSI has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
  • MSI's Dividend Yield is rather good when compared to the industry average which is at 0.77. MSI pays more dividend than 81.25% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, MSI's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.05%

5.2 History

  • On average, the dividend of MSI grows each year by 11.27%, 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)11.27%
Div Incr Years13
Div Non Decr Years13
MSI Yearly Dividends per shareMSI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • MSI pays out 33.80% 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.
DP33.8%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
MSI Yearly Income VS Free CF VS DividendMSI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B 2.5B
MSI Dividend Payout.MSI Dividend Payout, showing the Payout Ratio.MSI Dividend Payout.PayoutRetained Earnings

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MSI Fundamentals: All Metrics, Ratios and Statistics

MOTOROLA SOLUTIONS INC

NYSE:MSI (3/19/2026, 8:17:41 PM)

After market: 459.16 0 (0%)

459.16

-8.12 (-1.74%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners87.89%
Inst Owner Change-1.17%
Ins Owners0.13%
Ins Owner Change7.29%
Market Cap76.06B
Revenue(TTM)11.68B
Net Income(TTM)2.15B
Analysts81.05
Price Target502.86 (9.52%)
Short Float %1.53%
Short Ratio2.1
Dividend
Industry RankSector Rank
Dividend Yield 1.05%
Yearly Dividend4.38
Dividend Growth(5Y)11.27%
DP33.8%
Div Incr Years13
Div Non Decr Years13
Ex-Date03-20
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.5%
Min EPS beat(2)4.44%
Max EPS beat(2)4.57%
EPS beat(4)4
Avg EPS beat(4)4.79%
Min EPS beat(4)4.44%
Max EPS beat(4)5.5%
EPS beat(8)8
Avg EPS beat(8)6.07%
EPS beat(12)12
Avg EPS beat(12)5.95%
EPS beat(16)16
Avg EPS beat(16)5.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.13%
Min Revenue beat(2)-0.3%
Max Revenue beat(2)0.03%
Revenue beat(4)2
Avg Revenue beat(4)-0.13%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)0.25%
Revenue beat(8)5
Avg Revenue beat(8)0.08%
Revenue beat(12)9
Avg Revenue beat(12)0.24%
Revenue beat(16)13
Avg Revenue beat(16)0.98%
PT rev (1m)2.75%
PT rev (3m)0.27%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)2.83%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)-2.12%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.72%
Valuation
Industry RankSector Rank
PE 29.82
Fwd PE 27.09
P/S 6.51
P/FCF 29.57
P/OCF 26.81
P/B 31.56
P/tB N/A
EV/EBITDA 25.03
EPS(TTM)15.4
EY3.35%
EPS(NY)16.95
Fwd EY3.69%
FCF(TTM)15.53
FCFY3.38%
OCF(TTM)17.13
OCFY3.73%
SpS70.52
BVpS14.55
TBVpS-45.24
PEG (NY)2.96
PEG (5Y)2
Graham Number71
Profitability
Industry RankSector Rank
ROA 11.11%
ROE 89.38%
ROCE 22.21%
ROIC 16.51%
ROICexc 18.01%
ROICexgc 77.63%
OM 25.31%
PM (TTM) 18.44%
GM 51.66%
FCFM 22.02%
ROA(3y)11.58%
ROA(5y)11.12%
ROE(3y)139.34%
ROE(5y)N/A
ROIC(3y)21.01%
ROIC(5y)19.25%
ROICexc(3y)25.94%
ROICexc(5y)23.84%
ROICexgc(3y)102.14%
ROICexgc(5y)83.79%
ROCE(3y)27.15%
ROCE(5y)24.75%
ROICexgc growth 3Y8.8%
ROICexgc growth 5Y13.39%
ROICexc growth 3Y-3.09%
ROICexc growth 5Y-0.09%
OM growth 3Y9.74%
OM growth 5Y5.85%
PM growth 3Y7.22%
PM growth 5Y7.57%
GM growth 3Y3.64%
GM growth 5Y1.2%
F-Score6
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Debt/EBITDA 2.71
Cap/Depr 62.35%
Cap/Sales 2.27%
Interest Coverage 10.38
Cash Conversion 83.89%
Profit Quality 119.41%
Current Ratio 1.04
Quick Ratio 0.87
Altman-Z 4.04
F-Score6
WACC9.29%
ROIC/WACC1.78
Cap/Depr(3y)69.97%
Cap/Depr(5y)64.71%
Cap/Sales(3y)2.39%
Cap/Sales(5y)2.59%
Profit Quality(3y)119.84%
Profit Quality(5y)120.51%
High Growth Momentum
Growth
EPS 1Y (TTM)11.35%
EPS 3Y14.09%
EPS 5Y14.9%
EPS Q2Q%13.61%
EPS Next Y10.07%
EPS Next 2Y9.16%
EPS Next 3Y9.08%
EPS Next 5Y9.24%
Revenue 1Y (TTM)7.99%
Revenue growth 3Y8.63%
Revenue growth 5Y9.52%
Sales Q2Q%12.29%
Revenue Next Year9.03%
Revenue Next 2Y7.47%
Revenue Next 3Y7%
Revenue Next 5Y6.79%
EBIT growth 1Y9.97%
EBIT growth 3Y19.21%
EBIT growth 5Y15.92%
EBIT Next Year25.31%
EBIT Next 3Y12.99%
EBIT Next 5Y7.92%
FCF growth 1Y20.52%
FCF growth 3Y17.96%
FCF growth 5Y13%
OCF growth 1Y18.65%
OCF growth 3Y15.88%
OCF growth 5Y11.96%

MOTOROLA SOLUTIONS INC / MSI Fundamental Analysis FAQ

What is the ChartMill fundamental rating of MOTOROLA SOLUTIONS INC (MSI) stock?

ChartMill assigns a fundamental rating of 6 / 10 to MSI.


What is the valuation status of MOTOROLA SOLUTIONS INC (MSI) stock?

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 earnings growth outlook for MOTOROLA SOLUTIONS INC?

The Earnings per Share (EPS) of MOTOROLA SOLUTIONS INC (MSI) is expected to grow by 10.07% in the next year.


Can you provide the dividend sustainability for MSI stock?

The dividend rating of MOTOROLA SOLUTIONS INC (MSI) is 6 / 10 and the dividend payout ratio is 33.8%.