Skip to Content
Morningstar

Motorola Solutions Inc MSI

Morningstar Rating
Unlock
Stock XNYS Rating as of
$375.11 +1.30 (0.35%)
View Full Chart
As of Cboe BZX Real-Time Price Open
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Motorola Earnings: LMR Business Surprises on Growth and Margin Expansion; Valuation Increased

Eric Compton

We are increasing our fair value estimate for wide-moat-rated Motorola to $320 per share from $312 as the company reported excellent first-quarter earnings. Shares are slightly overvalued in our view. Given strong results and the updated outlook, we are slightly increasing our growth and margin expectations. We will keep an eye on margin development within land mobile radio as margin strength here surprised us, with management citing a shift toward feature-rich LMR products and improving scale and supply dynamics. We have slightly increased our longer-term gross margin estimate for this segment.

Read Full Report

Price vs Fair Value

View History
MSI is trading at a 777% premium.
Price
$373.80
Fair Value
$697.00
Uncertainty
Medium
1-Star Price
$721.00
5-Star Price
$446.00
Economic Moat
Zmjd
Capital Allocation
Pxgvcdbp

Bulls Say, Bears Say

Bulls

Motorola’s higher-growth, higher-margin, software-related businesses are becoming a larger portion of overall revenue. This will expand firmwide margins and opens a long runway of potential double-digit-percentage growth in each relevant segment.

Bears

If more governments use their power to unilaterally decrease Motorola’s pricing and/or threaten contracts, like what has happened in the UK, it would be a headwind to growth.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if MSI is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$373.81
Day Range
$371.51–375.51
52-Week Range
$269.70–375.51
Bid/Ask
$375.01 / $375.25
Market Cap
$62.56 Bil
Volume/Avg
139,910 / 677,236

Key Statistics

Price/Earnings (Normalized)
29.85
Price/Sales
6.25
Dividend Yield (Trailing)
1.00%
Dividend Yield (Forward)
1.05%
Total Yield
2.01%

Company Profile

Motorola Solutions is a leading provider of communications and analytics, primarily serving public safety departments as well as schools, hospitals, and businesses. The bulk of the firm’s revenue comes from sales of land mobile radios and radio network infrastructure, but the firm also sells surveillance equipment and dispatch software. Most of Motorola’s revenue comes from government agencies, while roughly 25% comes from schools and private businesses. Motorola has customers in over 100 countries and in every state in the United States.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Core
Total Number of Employees
21,000
Website
https://www.motorolasolutions.com

Competitors

Valuation

View More
Metric
MSI
TYL
NOK
Price/Earnings (Normalized)
 29.8557.9011.43
Price/Book Value
 119.676.700.93
Price/Sales
 6.2510.280.93
Price/Cash Flow
 24.7951.617.43
Price/Earnings
MSI
TYL
NOK

Financial Strength

Metric
MSI
TYL
NOK
Quick Ratio
 0.940.851.40
Current Ratio
 1.190.941.65
Interest Coverage
 7.2613.48—
Quick Ratio
MSI
TYL
NOK

Profitability

Metric
MSI
TYL
NOK
Return on Assets (Normalized)
 16.91%7.65%3.94%
Return on Equity (Normalized)
 494.72%12.39%7.69%
Return on Invested Capital (Normalized)
 33.00%10.10%5.98%
Return on Assets
MSI
TYL
NOK
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Communication Equipment Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Cisco Systems Inc
CSCO
LmkxmrtdgYxjt$184.7 Bil
 Hewlett Packard Enterprise Co
HPE
TbhpbnlXjmg$26.0 Bil
 Nokia Oyj
NOKBF
—Jpxj$21.4 Bil
 Nokia Oyj ADR
NOK
MmglzfytdNpcy$21.4 Bil
 Telefonaktiebolaget L M Ericsson ADR
ERIC
ZmhjgvmZzrcq$21.2 Bil
 Telefonaktiebolaget L M Ericsson Class B
ERIXF
NFYyy$20.5 Bil
 ZTE Corp Class H
ZTCOF
—Yqjmm$16.8 Bil
 Zebra Technologies Corp Class A
ZBRA
XwpjsbgTbcdfkl$15.6 Bil
 EchoStar Corp Class A
SATS
FxjVqjx$5.1 Bil

Sponsor Center