Skip to Content
Morningstar
Get 14 Days Free

Motorola Solutions Inc MSI

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Motorola Solutions Remains Poised to Win in Software and Services; Raising FVE to $174

Brian Colello, CPA Sector Director

Analyst Note

| Brian Colello, CPA |

Motorola Solutions reported solid fourth-quarter results with revenue and EPS ahead of the firm’s guidance and FactSet consensus estimates. Motorola had another strong quarter of year-over-year growth in software, video security, and command center systems. The company also witnessed a record high in orders for land mobile radios, or LMRs, in North America, which bodes well for the firm’s expectations of mid-single-digit growth in its product & systems integration, or P&SI,  segment in 2021. We are raising our fair value estimate for narrow-moat Motorola to $174 per share from $161, mostly as we roll our valuation model for the time value of money. We view shares as fairly valued.

Read Full Analysis

Company Profile

Business Description

Motorola Solutions provides communication infrastructure, devices, accessories, software, and services. The company operates two segments: products and systems integration, and services and software. The firm is considered the standard-bearer in the public safety space with 80% of the market. It also offers a variety of services such as repair, technical support and maintenance, monitoring, software updates, and cybersecurity services.

Contact
500 West Monroe Street, Suite 4400
Chicago, IL, 60661
T +1 847 576-5000
Sector Technology
Industry Communication Equipment
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 18,000

Related

Advisor Insights
Investing for Social Justice From the Bottom Up
Advisor Rachel Robasciotti listens to groups on the ground to make an impact.
Morningstar
Premium Article
9 High-Quality Stocks Newly on Sale
After another big market drop, these high-quality companies are now trading in 4-star territory.
Jeremy Glaser
Premium Article
5 Stocks With More Room to Run
Premium Exclusive: These stocks have momentum on their side yet still look undervalued by our metrics.
Susan Dziubinski
Quarter-End Insights
Technology: Shift to Cloud Computing Most Important Story
The sector looks modestly overvalued as a whole, but there are some attractive firms in enterprise software and IT services.
Brian Colello
Stock Strategist
Motorola Dominates Its Mission-Critical Niche
Expansion abroad, aided by recent M&A, bodes well for the top and bottom lines.
William Fitzsimmons
Fund Spy
The Top- and Bottom-Performing U.S. Equity Funds From the First Half
I look at the highlights and lowlights in equityland.
Russel Kinnel
Investing Specialists
Ultimate Stock-Pickers: Top Holdings of Top-Performing Managers
Our Ultimate Stock-Pickers Index continues to beat the market even as relatively few of our top managers are outperforming the S&P 500.
The Morningstar Ultimate Stock-Pickers Team
Fund Spy: Morningstar Medalist Edition
A Closer Look at a Fund Manager of the Year
Morgan Stanley's growth team rises above the crowds with its flexible process and distinctive culture.
Janet Yang, CFA
Quarter-End Insights
Our Outlook for Tech & Communication Services Stocks
Greed trumps fear in several pockets of the tech sector, but buying opportunities can still be found.
Peter Wahlstrom
Credit Insights
Where There Is Smoke, There Is a Raging Inferno?
J.P. Morgan's trading losses are certainly a negative mark on Jamie Dimon's reputation, but we do not believe this hit to the bank's capital levels is substantive enough to affect our issuer credit rating.
David Sekera
Investing Specialists
10 High-Conviction Buys From Our Ultimate Stock-Pickers
Our top managers' recent buying activity was much lighter than we've seen in past periods.
The Morningstar Ultimate Stock-Pickers Team
Quarter-End Insights
Our Outlook for Tech & Communication Services Stocks
Though pockets of weakness have emerged, we expect well-positioned tech and telecom firms will continue to prosper.
Michael Hodel
Fund Times
Dodge & Cox Stock Gets Going on Motorola Mobility Deal
Mairs & Power launches first new fund in 50 years, and more.
Morningstar Fund Analysts
Premium Article
More Picks for the Pullback
Hoping to buy on the dip? These stocks are a good place to look.
Jeremy Glaser
Stock Strategist Industry Reports
Tapping the Winners in Wireless Handsets
Our top pick has a strong signal, but could a competitor come calling?
Joseph Beaulieu
US Videos
Sizing Up Five Rivalries
Morningstar markets editor Jeremy Glaser gives the blow-by-blow on recent showdowns between Coke and Pepsi, Apple and Google, Facebook and Twitter, and more.
Jason Stipp
US Videos
What's the Real Value of an Economic Moat?
Morningstar's Pat Dorsey on why it's worth paying up a little bit for a wide moat business versus a no moat business.
Pat Dorsey
Stock Strategist
GDP May Have Slowed, but Earnings Didn't
Continued strength in corporate earnings shows there is still life in the recovery.
Jeremy Glaser
Market Update
Are Strong Earnings Leading to Strong Outlooks?
Results keep coming in above investor expectations, but management teams are generally being cautious about guidance.
Jeremy Glaser
Stock Strategist Industry Reports
For Investing in Smartphones, Stick with the Obvious Choices.
Motorola and Palm can't beat Apple and RIM; little money in Android.
Joseph Beaulieu