Skip to Content

Motorola Solutions Inc MSI

Morningstar Rating
$325.32 +2.45 (0.76%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

Motorola Earnings: Another Terrific Period of Robust Demand Brings Valuation up to $230 From $223

We raise our fair value estimate for shares of narrow-moat Motorola Solutions to $230, from $223, after another quarter where results and guidance beat our expectations. Simply put, Motorola is seeing tremendous demand for public safety technology and is uniquely positioned to capitalize on this demand with its comprehensive portfolio. We see Motorola as competitively strong, with mission-critical, sticky products that underpin its economic moat. Still, we continue to find valuation challenging and see shares as overvalued.

Price vs Fair Value

MSI is trading at a 41% premium.
Price
$325.31
Fair Value
$412.00
Uncertainty
Medium
1-Star Price
$974.30
5-Star Price
$373.00
Economic Moat
Zdyjmsc
Capital Allocation
Qvftlpbv

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
$322.87
Day Range
$322.56325.90
52-Week Range
$251.25325.90
Bid/Ask
$325.31 / $326.62
Market Cap
$53.99 Bil
Volume/Avg
708,354 / 650,072

Key Statistics

Price/Earnings (Normalized)
27.92
Price/Sales
5.69
Dividend Yield
1.08%
Dividend Yield (Forward)
1.21%
Total Yield
2.31%

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
20,000

Competitors

Valuation

Metric
MSI
NOK
ERIC
Price/Earnings (Normalized)
27.929.6211.96
Price/Book Value
149.360.861.71
Price/Sales
5.690.760.64
Price/Cash Flow
22.266.1510.74
Price/Earnings
MSI
NOK
ERIC

Financial Strength

Metric
MSI
NOK
ERIC
Quick Ratio
0.721.350.79
Current Ratio
0.951.641.10
Interest Coverage
9.9624.02−5.57
Quick Ratio
MSI
NOK
ERIC

Profitability

Metric
MSI
NOK
ERIC
Return on Assets (Normalized)
16.32%4.74%−6.75%
Return on Equity (Normalized)
1,565.52%9.47%−17.96%
Return on Invested Capital (Normalized)
32.91%7.75%−12.80%
Return on Assets
MSI
NOK
ERIC

Communication Equipment Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
CSCO
Cisco Systems IncQgrrh$197.0 Bil
HPE
Hewlett Packard Enterprise CoBdtmg$21.7 Bil
NOKBF
Nokia OyjJcnq$19.5 Bil
NOK
Nokia Oyj ADRVph$19.5 Bil
ERIXF
Telefonaktiebolaget L M Ericsson Class BKbyk$16.7 Bil
ERIC
Telefonaktiebolaget L M Ericsson ADRPxg$16.7 Bil
ZTCOF
ZTE Corp Class HDywr$16.5 Bil
ZBRA
Zebra Technologies Corp Class ACvtrjg$12.4 Bil
JNPR
Juniper Networks IncJtcbnd$9.1 Bil