MOTOROLA SOLUTIONS INC (MSI) Fundamental Analysis & Valuation

NYSE:MSI • US6200763075

Current stock price

438.26 USD
-4.91 (-1.11%)
At close:
438.26 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

  • MSI had positive earnings in the past year.
  • MSI had a positive operating cash flow in the past year.
  • Each year in the past 5 years MSI has been profitable.
  • Each year in the past 5 years MSI had a positive operating cash flow.
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

  • MSI has a Return On Assets of 11.11%. This is amongst the best in the industry. MSI outperforms 86.96% of its industry peers.
  • MSI's Return On Equity of 89.38% is amongst the best of the industry. MSI outperforms 100.00% of its industry peers.
  • MSI has a Return On Invested Capital of 16.51%. This is amongst the best in the industry. MSI outperforms 89.13% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MSI is significantly above the industry average of 10.44%.
  • The 3 year average ROIC (21.01%) for MSI is well above the current ROIC(16.51%). The reason for the recent decline needs to be investigated.
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

  • The Profit Margin of MSI (18.44%) is better than 89.13% 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 25.31%, MSI belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • MSI's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 51.66%, MSI is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MSI is creating value.
  • MSI has less shares outstanding than it did 1 year ago.
  • MSI has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for MSI is higher compared to a year ago.
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 3.91. This indicates that MSI is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.91, MSI is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
  • 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.
  • With a Debt to FCF ratio value of 3.56, MSI perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
  • 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 93.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.8
Debt/FCF 3.56
Altman-Z 3.91
ROIC/WACC1.72
WACC9.6%
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

  • A Current Ratio of 1.04 indicates that MSI should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.04, MSI is doing worse than 86.96% of the companies in the same industry.
  • 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 84.78% 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

  • MSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.35%, 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 14.90% yearly.
  • Looking at the last year, MSI shows a small growth in Revenue. The Revenue has grown by 7.99% in the last year.
  • Measured over the past years, MSI shows a quite strong growth in Revenue. The Revenue has been growing by 9.52% on average per year.
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

  • MSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
  • 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 Year9.04%
Revenue Next 2Y7.47%
Revenue Next 3Y7%
Revenue Next 5Y6.79%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • A Price/Earnings ratio of 28.46 indicates a quite expensive 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 63.04% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of MSI to the average of the S&P500 Index (27.42), we can say MSI is valued inline with the index average.
  • The Price/Forward Earnings ratio is 25.85, which means the current valuation is very expensive for MSI.
  • MSI's Price/Forward Earnings is on the same level as the industry average.
  • MSI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.24, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28.46
Fwd PE 25.85
MSI Price Earnings VS Forward Price EarningsMSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as MSI.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as MSI.
Industry RankSector Rank
P/FCF 28.32
EV/EBITDA 23.92
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 an expensive valuation of the company.
  • MSI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.83
PEG (5Y)1.91
EPS Next 2Y9.16%
EPS Next 3Y9.08%

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

6

5. MSI Dividend Analysis

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 1.91, MSI pays a better dividend. On top of this MSI pays more dividend than 80.43% of the companies listed in the same industry.
  • MSI's Dividend Yield is slightly below the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.09%

5.2 History

  • The dividend of MSI is nicely growing with an annual growth rate of 11.27%!
  • 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)11.27%
Div Incr Years14
Div Non Decr Years14
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.
  • The dividend of MSI is growing, but the earnings are growing slower. 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 (4/24/2026, 8:04:00 PM)

After market: 438.26 0 (0%)

438.26

-4.91 (-1.11%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-11
Earnings (Next)05-07
Inst Owners87.9%
Inst Owner Change-0.22%
Ins Owners0.13%
Ins Owner Change10.13%
Market Cap72.84B
Revenue(TTM)11.68B
Net Income(TTM)2.15B
Analysts81.05
Price Target502.86 (14.74%)
Short Float %1.5%
Short Ratio2.25
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly Dividend4.38
Dividend Growth(5Y)11.27%
DP33.8%
Div Incr Years14
Div Non Decr Years14
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)0%
PT rev (3m)1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0%
EPS NY rev (3m)2.83%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-2.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
Industry RankSector Rank
PE 28.46
Fwd PE 25.85
P/S 6.24
P/FCF 28.32
P/OCF 25.67
P/B 30.22
P/tB N/A
EV/EBITDA 23.92
EPS(TTM)15.4
EY3.51%
EPS(NY)16.95
Fwd EY3.87%
FCF(TTM)15.48
FCFY3.53%
OCF(TTM)17.07
OCFY3.89%
SpS70.29
BVpS14.5
TBVpS-45.09
PEG (NY)2.83
PEG (5Y)1.91
Graham Number70.8834 (-83.83%)
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 3.91
F-Score6
WACC9.6%
ROIC/WACC1.72
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 Year9.04%
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 Year24.94%
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 for MSI stock?

ChartMill assigns a valuation rating of 3 / 10 to MOTOROLA SOLUTIONS INC (MSI). This can be considered as Overvalued.


What is the profitability of MSI stock?

MOTOROLA SOLUTIONS INC (MSI) has a profitability rating of 9 / 10.


What are the PE and PB ratios of MOTOROLA SOLUTIONS INC (MSI) stock?

The Price/Earnings (PE) ratio for MOTOROLA SOLUTIONS INC (MSI) is 28.46 and the Price/Book (PB) ratio is 30.22.


Can you provide the financial health for MSI stock?

The financial health rating of MOTOROLA SOLUTIONS INC (MSI) is 4 / 10.