(MSI) Motorola Solutions - NYSE
Sector: Technology | Industry: Communication Equipment | Exchange: NYSE (USA) | Market Cap: 68.432m USD | Total Return: 1.9% in 12m
Avg Turnover: 444M
EPS Trend: 90.7%
Qual. Beats: 2
Rev. Trend: 99.7%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Motorola Solutions, Inc. (MSI) specializes in mission-critical communications and security infrastructure for public safety, government, and enterprise clients. The company operates through two primary segments: Products and Systems Integration, which handles hardware like Land Mobile Radio (LMR) systems and video surveillance, and Software and Services, which manages command center applications and cybersecurity monitoring. Since rebranding in 2011, the firm has pivoted from consumer electronics to high-margin recurring revenue models based on long-term service contracts.
The business model relies on deep integration within government budgets, where high switching costs and strict regulatory standards create significant barriers to entry for competitors. In the communications equipment sector, demand is increasingly driven by the convergence of traditional LMR voice technology with AI-powered video analytics and broadband data integration. For a deeper look into these industry trends and company-specific metrics, consider reviewing the data on ValueRay.
Headquartered in Chicago, Motorola Solutions serves a diverse global client base ranging from emergency services and military defense to industrial sectors like mining and utilities. Its portfolio includes two-way radios, body-worn cameras, and access control systems designed for high-reliability environments.
- Government public safety budget allocations drive mission-critical radio and infrastructure demand
- Expansion of high-margin recurring software and cybersecurity services improves operating leverage
- Strategic acquisitions in video security and access control diversify non-radio revenue streams
- Multi-year record backlogs provide long-term revenue visibility despite macroeconomic volatility
- Global supply chain stability impacts hardware manufacturing costs and delivery timelines
| Net Income: 2.09b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -2.69 > 1.0 |
| NWC/Revenue: 2.62% < 20% (prev 8.92%; Δ -6.30% < -1%) |
| CFO/TA 0.15 > 3% & CFO 2.78b > Net Income 2.09b |
| Net Debt (9.33b) to EBITDA (3.64b): 2.56 < 3 |
| Current Ratio: 1.06 > 1.5 & < 3 |
| Outstanding Shares: last quarter (168.0m) vs 12m ago -1.06% < -2% |
| Gross Margin: 49.28% > 18% (prev 51.30%; Δ -2.02% > 0.5%) |
| Asset Turnover: 70.83% > 50% (prev 75.92%; Δ -5.09% > 0%) |
| Interest Coverage Ratio: 7.65 > 6 (EBIT TTM 3.11b / Interest Expense TTM 407.0m) |
| A: 0.02 (Total Current Assets 5.87b - Total Current Liabilities 5.56b) / Total Assets 19.1b |
| B: 0.14 (Retained Earnings 2.60b / Total Assets 19.1b) |
| C: 0.19 (EBIT TTM 3.11b / Avg Total Assets 16.8b) |
| D: 0.15 (Book Value of Equity 2.54b / Total Liabilities 16.5b) |
| Altman-Z'' = 1.96 = BBB |
| DSRI: 1.05 (Receivables 3.48b/3.06b, Revenue 11.9b/11.0b) |
| GMI: 1.04 (GM 51.30% / 49.28%) |
| AQI: 1.24 (AQ_t 0.60 / AQ_t-1 0.48) |
| SGI: 1.08 (Revenue 11.9b / 11.0b) |
| TATA: -0.04 (NI 2.09b - CFO 2.78b) / TA 19.1b) |
| Beneish M = -2.75 (Cap -4..+1) = A |
As of June 15, 2026, the stock is trading at USD 412.25 with a total of 602,332 shares traded.
Over the past week, the price has changed by +0.47%,
over one month by +3.61%,
over three months by -12.64% and
over the past year by +1.85%.
Motorola Solutions has received a consensus analysts rating of 4.36. Therefore, it is recommended to buy MSI.
- StrongBuy: 7
- Buy: 5
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 506.6 | 22.9% |
P/E Trailing = 33.2728
P/E Forward = 23.8663
P/S = 5.7661
P/B = 26.7753
P/EG = 2.2116
Revenue TTM = 11.9b USD
EBIT TTM = 3.11b USD
EBITDA TTM = 3.64b USD
Long Term Debt = 8.41b USD (from longTermDebt, last quarter)
Short Term Debt = 680.0m USD (from shortTermDebt, last quarter)
Debt = 10.2b USD (from shortLongTermDebtTotal, last quarter) + Leases 624.0m
Net Debt = 9.33b USD (calculated: Debt 10.2b - CCE 886.0m)
Enterprise Value = 77.8b USD (68.4b + Debt 10.2b - CCE 886.0m)
Interest Coverage Ratio = 7.65 (Ebit TTM 3.11b / Interest Expense TTM 407.0m)
EV/FCF = 31.25x (Enterprise Value 77.8b / FCF TTM 2.49b)
FCF Yield = 3.20% (FCF TTM 2.49b / Enterprise Value 77.8b)
FCF Margin = 20.96% (FCF TTM 2.49b / Revenue TTM 11.9b)
Net Margin = 17.61% (Net Income TTM 2.09b / Revenue TTM 11.9b)
Gross Margin = 49.28% ((Revenue TTM 11.9b - Cost of Revenue TTM 6.02b) / Revenue TTM)
Gross Margin QoQ = 47.42% (prev 48.73%)
Tobins Q-Ratio = 4.08 (Enterprise Value 77.8b / Total Assets 19.1b)
Interest Expense / Debt = 3.99% (Interest Expense 407.0m / Debt 10.2b)
Taxrate = 22.53% (610.0m / 2.71b)
NOPAT = 2.41b (EBIT 3.11b * (1 - 22.53%))
Current Ratio = 1.06 (Total Current Assets 5.87b / Total Current Liabilities 5.56b)
Debt / Equity = 4.01 (Debt 10.2b / totalStockholderEquity, last quarter 2.54b)
Debt / EBITDA = 2.56 (Net Debt 9.33b / EBITDA 3.64b)
Debt / FCF = 3.75 (Net Debt 9.33b / FCF TTM 2.49b)
Total Stockholder Equity = 2.31b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.47% (Net Income 2.09b / Total Assets 19.1b)
RoE = 90.39% (Net Income TTM 2.09b / Total Stockholder Equity 2.31b)
RoCE = 29.03% (EBIT 3.11b / Capital Employed (Equity 2.31b + L.T.Debt 8.41b))
RoIC = 17.73% (NOPAT 2.41b / Invested Capital 13.6b)
WACC = 6.82% (E(68.4b)/V(78.6b) * Re(7.38%) + D(10.2b)/V(78.6b) * Rd(3.99%) * (1-Tc(0.23)))
Discount Rate = 7.38% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -51.11 | Cagr: -0.91%
[DCF] Terminal Value 76.61% ; FCFF base≈2.40b ; Y1≈2.60b ; Y5≈3.21b
[DCF] Fair Price = 239.9 (EV 49.1b - Net Debt 9.33b = Equity 39.8b / Shares 166.0m; r=8.35% [WACC [floored]]; 5y FCF grow 9.56% → 2.50% )
EPS Correlation: 90.66 | EPS CAGR: 8.81% | SUE: 1.24 | # QB: 2
Revenue Correlation: 99.73 | Revenue CAGR: 7.67% | SUE: 0.93 | # QB: 4
EPS current Quarter (2026-06-30): EPS=3.85 | Chg30d=-0.16% | Revisions=+0% | Analysts=13
EPS next Quarter (2026-09-30): EPS=4.42 | Chg30d=+0.42% | Revisions=-14% | Analysts=13
EPS current Year (2026-12-31): EPS=16.97 | Chg30d=+1.06% | Revisions=+75% | GrowthEPS=+10.3% | GrowthRev=+9.6%
EPS next Year (2027-12-31): EPS=18.52 | Chg30d=+1.44% | Revisions=+67% | GrowthEPS=+9.1% | GrowthRev=+6.3%
[Analyst] Revisions Ratio: +75%