Motorola Solutions, Inc.
Motorola Solutions, Inc. Fundamental Analysis
Motorola Solutions, Inc. (MSI) shows moderate financial fundamentals with a PE ratio of 31.25, profit margin of 17.61%, and ROE of 90.39%. The company generates $11.9B in annual revenue with moderate year-over-year growth of 8.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MSI's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMSI demonstrates superior asset utilization.
Valuation Score
WeakMSI trades at a premium to fair value.
Growth Score
ExcellentMSI delivers strong and consistent growth momentum.
Financial Health Score
ModerateMSI shows balanced financial health with some risks.
Profitability Score
ExcellentMSI achieves industry-leading margins.
Key Financial Metrics
Is MSI Expensive or Cheap?
P/E Ratio
MSI trades at 31.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MSI's PEG of 12.35 indicates potential overvaluation.
Price to Book
The market values Motorola Solutions, Inc. at 25.67 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.83 times EBITDA. This signals the market has high growth expectations.
How Well Does MSI Make Money?
Net Profit Margin
For every $100 in sales, Motorola Solutions, Inc. keeps $17.61 as profit after all expenses.
Operating Margin
Core operations generate 24.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $90.39 in profit for every $100 of shareholder equity.
ROA
Motorola Solutions, Inc. generates $10.95 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Motorola Solutions, Inc. produces operating cash flow of $2.78B, showing steady but balanced cash generation.
Free Cash Flow
Motorola Solutions, Inc. generates strong free cash flow of $2.49B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $15.01 in free cash annually.
FCF Yield
MSI converts 3.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
25.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.90
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How MSI Stacks Against Its Sector Peers
| Metric | MSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.25 | 36.81 | Better (Cheaper) |
| ROE | 90.39% | 974.00% | Weak |
| Net Margin | 17.61% | 5914823191.00% | Weak |
| Debt/Equity | 3.77 | 0.34 | Weak (High Leverage) |
| Current Ratio | 1.06 | 4.93 | Neutral |
| ROA | 10.95% | -294975.00% (disorted) | Strong |
MSI outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Motorola Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
61.17%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
132.17%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
79.90%
Industry Style: Growth, Innovation, High Beta
High Growth