Skip to Content

Motorola Solutions Inc MSI

Morningstar Rating
$335.77 +0.21 (0.06%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Motorola Solutions Earnings: Public Safety Demand Keeps Humming; Valuation Up to $237 From $230

We raise our fair value estimate for narrow-moat Motorola Solutions to $237 per share, from $230, to incorporate slightly higher 2024 guidance and account for the time value of money. Motorola beat its quarterly guidance again and provided an upbeat outlook for the first quarter and full year. Strong results continue to demonstrate durable demand for public safety across Motorola’s radio, video, and software portfolio. We see the firm as uniquely positioned to benefit from public safety with its comprehensive solution set, which also undergirds our moat rating. We continue to see shares as overvalued, however. Shares dipped roughly 3% afterhours following the release of results, which we see as a moderation in high expectations that have driven shares to levels above the firm’s fundamentals.

Price vs Fair Value

MSI is trading at a 42% premium.
Price
$335.77
Fair Value
$426.00
Uncertainty
Medium
1-Star Price
$574.58
5-Star Price
$452.80
Economic Moat
Jxdsrx
Capital Allocation
Ynrjcrjk

Bulls Say, Bears Say

Bulls

We think Motorola’s video and software businesses becoming a larger portion of overall revenue will expand firmwide gross and operating margins.

Bears

We think the merged L3Harris could create a more robust competitor to Motorola’s land mobile radio business and potentially eat into the latter's market share and top-line growth potential.

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.

News

Trading Information

Previous Close Price
$335.56
Day Range
$332.84335.80
52-Week Range
$255.85335.88
Bid/Ask
$334.53 / $336.13
Market Cap
$55.78 Bil
Volume/Avg
507,536 / 666,261

Key Statistics

Price/Earnings (Normalized)
28.10
Price/Sales
5.79
Dividend Yield (Trailing)
1.08%
Dividend Yield (Forward)
1.17%
Total Yield
2.33%

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

Competitors

Valuation

Metric
MSI
TYL
NOK
Price/Earnings (Normalized)
28.1056.1811.91
Price/Book Value
77.086.310.88
Price/Sales
5.799.600.84
Price/Cash Flow
24.9149.317.17
Price/Earnings
MSI
TYL
NOK

Financial Strength

Metric
MSI
TYL
NOK
Quick Ratio
0.810.791.37
Current Ratio
1.000.861.66
Interest Coverage
9.499.394.05
Quick Ratio
MSI
TYL
NOK

Profitability

Metric
MSI
TYL
NOK
Return on Assets (Normalized)
16.28%7.19%3.94%
Return on Equity (Normalized)
580.09%12.03%7.69%
Return on Invested Capital (Normalized)
32.32%9.68%5.98%
Return on Assets
MSI
TYL
NOK
See how this stock stacks up to its competitors with Morningstar Investor

Communication Equipment Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
CSCO
Cisco Systems IncGxzt$198.9 Bil
HPE
Hewlett Packard Enterprise CoXpg$22.3 Bil
NOKBF
Nokia OyjSbzr$19.9 Bil
NOK
Nokia Oyj ADRFblzw$19.9 Bil
ZTCOF
ZTE Corp Class HLdc$18.8 Bil
ERIXF
Telefonaktiebolaget L M Ericsson Class BCcyr$18.3 Bil
ERIC
Telefonaktiebolaget L M Ericsson ADRBjqb$18.3 Bil
ZBRA
Zebra Technologies Corp Class ATmbfwj$15.0 Bil
SATS
EchoStar Corp Class AYvnd$3.5 Bil

Sponsor Center