NYSE:MSI

Stock Analysis Report

Motorola Solutions

Executive Summary

Motorola Solutions, Inc. provides mission-critical communication solutions in the United States, the United Kingdom, Canada, and internationally.

Snowflake

Fundamentals

Acceptable track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Motorola Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.2%

MSI

2.9%

US Communications

1.0%

US Market


1 Year Return

43.1%

MSI

1.6%

US Communications

8.0%

US Market

Return vs Industry: MSI exceeded the US Communications industry which returned 1.6% over the past year.

Return vs Market: MSI exceeded the US Market which returned 8% over the past year.


Shareholder returns

MSIIndustryMarket
7 Day5.2%2.9%1.0%
30 Day5.9%-3.0%-0.07%
90 Day3.1%-14.9%-1.0%
1 Year45.3%43.1%3.9%1.6%10.4%8.0%
3 Year150.1%136.3%53.0%43.2%46.2%36.7%
5 Year210.2%180.3%96.6%75.2%64.3%46.2%

Price Volatility Vs. Market

How volatile is Motorola Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Motorola Solutions undervalued compared to its fair value and its price relative to the market?

28.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSI ($176.01) is trading above our estimate of fair value ($152.13)

Significantly Below Fair Value: MSI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MSI is good value based on its PE Ratio (28.1x) compared to the Communications industry average (29.3x).

PE vs Market: MSI is poor value based on its PE Ratio (28.1x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: MSI is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: MSI has negative assets, so we can't compare its PB Ratio to the US Communications industry average.


Next Steps

  • Explore potentially undervalued companies in the Tech industry.

Future Growth

How is Motorola Solutions forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSI's forecast earnings growth (11.4% per year) is above the savings rate (2.7%).

Earnings vs Market: MSI's earnings (11.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MSI's earnings are forecast to grow, but not significantly.

Revenue vs Market: MSI's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: MSI's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSI's Return on Equity is forecast to be very high in 3 years time (594.2%).


Next Steps

Past Performance

How has Motorola Solutions performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MSI's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: MSI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MSI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (23.8%).


Return on Equity

High ROE: MSI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: MSI has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: MSI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Motorola Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: MSI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: MSI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: MSI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: MSI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: MSI's debt is well covered by operating cash flow (31.1%).

Interest Coverage: MSI's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: MSI has a low level of unsold assets or inventory.

Debt Coverage by Assets: MSI has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Motorola Solutions's current dividend yield, its reliability and sustainability?

1.30%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MSI's dividend (1.3%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MSI's dividend (1.3%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: MSI's dividend payments have been volatile in the past 10 years.

Growing Dividend: MSI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), MSI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MSI's dividends in 3 years are forecast to be well covered by earnings (29% payout ratio).


Next Steps

Management

What is the CEO of Motorola Solutions's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Greg Brown (59yo)

8.4yrs

Tenure

US$20,348,558

Compensation

Mr. Gregory Q. Brown, also known as Greg, has been the Chief Executive Officer of Motorola Solutions, Inc. since May 3, 2011. Mr. Brown has been an Executive Director of Motorola Solutions, Inc., since Jul ...


CEO Compensation Analysis

Compensation vs. Market: Greg's total compensation ($USD20.35M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.5yrs

Average Tenure

47yo

Average Age

Experienced Management: MSI's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

60yo

Average Age

Experienced Board: MSI's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$224,06705 Jun 19
Gino Bonanotte
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,429
Max PriceUS$156.80
SellUS$257,61928 May 19
Rajan Naik
EntityIndividual
Shares1,708
Max PriceUS$150.83
SellUS$3,173,63714 May 19
Gregory Brown
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares21,600
Max PriceUS$147.66
SellUS$139,72726 Feb 19
Cynthia Yazdi
EntityIndividual
Role
Head of Corporate Communications
Senior VP and Chief of Staff
Shares999
Max PriceUS$139.87
SellUS$91,65508 Nov 18
Cynthia Yazdi
EntityIndividual
Role
Head of Corporate Communications
Senior VP and Chief of Staff
Shares735
Max PriceUS$124.70
SellUS$14,40607 Nov 18
Daniel Pekofske
EntityIndividual
Role
Chief Accounting Officer
Corporate VP & Chief Accounting Officer
Shares117
Max PriceUS$123.13

Ownership Breakdown


Management Team

  • Greg Brown (59yo)

    Chairman & CEO

    • Tenure: 8.4yrs
    • Compensation: US$20.35m
  • Kelly Mark (47yo)

    Executive Vice President of Services & Software

    • Tenure: 8.8yrs
    • Compensation: US$2.12m
  • Chris Kutsor

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Mahesh Saptharishi

    Chief Technology Officer

    • Tenure: 0.6yrs
  • Gino Bonanotte (54yo)

    Executive VP & CFO

    • Tenure: 5.9yrs
    • Compensation: US$4.85m
  • Manuel Cuevas-Trisán

    Chief Human Resources Officer and Corporate VP of Employment Law & Data Protection

    • Tenure: 0yrs
  • Mark Hacker (47yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$3.69m
  • Jack Molloy (47yo)

    Executive Vice President of Products & Sales

    • Tenure: 2.3yrs
    • Compensation: US$4.08m
  • Cynthia Yazdi (54yo)

    Senior VP and Chief of Staff

    • Tenure: 1.2yrs
  • Dan Pekofske (43yo)

    Corporate VP & Chief Accounting Officer

    • Tenure: 1.1yrs

Board Members

  • Egon Durban (46yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$290.34k
  • Greg Mondre (45yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$300.43k
  • Joe Tucci (72yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$290.06k
  • Ken Denman (60yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$301.31k
  • Greg Brown (59yo)

    Chairman & CEO

    • Tenure: 8.4yrs
    • Compensation: US$20.35m
  • Judy Lewent (70yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$315.06k
  • Clay Jones (70yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$300.06k
  • Anne Pramaggiore (60yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$310.30k

Company Information

Motorola Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Motorola Solutions, Inc.
  • Ticker: MSI
  • Exchange: NYSE
  • Founded: 1928
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$29.315b
  • Shares outstanding: 166.56m
  • Website: https://www.motorolasolutions.com

Number of Employees


Location

  • Motorola Solutions, Inc.
  • 500 West Monroe Street
  • Suite 4400
  • Chicago
  • Illinois
  • 60661
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0K3HLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
MTLADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968

Biography

Motorola Solutions, Inc. provides mission-critical communication solutions in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:39
End of Day Share Price2019/10/21 00:00
Earnings2019/06/29
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.