MSI Stock Overview
Motorola Solutions, Inc. provides mission critical communications and analytics in the United States, the United Kingdom, Canada, and internationally.
Motorola Solutions Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$229.62|
|52 Week High||US$273.65|
|52 Week Low||US$195.18|
|1 Month Change||-7.06%|
|3 Month Change||9.55%|
|1 Year Change||-2.56%|
|3 Year Change||39.65%|
|5 Year Change||168.12%|
|Change since IPO||545.31%|
Recent News & Updates
Motorola Solutions: Record Backlog Is 6x Q2 Revenue
Summary MSI's Q2 was a strong beat - led by growth in the Video Security and its Command Center Software businesses. That, along with a solid performance by the Land Mobile Radio business, led the company to increase its FY22 revenue and EPS guidance. Despite a continued FX headwind, MSI grew its backlog for the eighth straight quarter - ending Q2 with a record $13.8 billion, which is more than 6x Q2 total revenue. MSI's resilient businesses in the face of recession have enabled the stock to hang tough over the past year (down only ~2%), outperforming the S&P500 by ~18%. The stock yields 1.4%, trades with a forward P/E of 22.7x, and should earn $10+/share this year. As I have been reporting in my Seeking Alpha articles on Motorola Solutions (MSI), the company has been growing via strategic acquisitions in the video surveillance market - a complementary business that dovetails nicely with MSI's first-responder, critical-communications, and public safety radio & networks solutions. Video security and access control sales were up 21% yoy. That was one reason MSI's Q2 earnings report was a beat on both the top- and bottom-lines (there were other reasons as well). The strong Q2 and recent order flow led management to raise full-year 2022 revenue and earnings guidance. Meantime, MSI was able to grow the backlog to a record $13.4 billion - up 19% yoy - and more than 6x Q2's total revenue. This is why I would argue that Motorola is a great company to hold during a recession: regardless of the macro-economic background, for at least the next year-and-a-half or so, MSI is likely going to continue to perform very well and generate strong free-cash-flow. If you already hold MSI shares with a full-position, I rate it a HOLD here ($229). If you are looking to take a position in the company, I advise you BUY and to dollar-cost-average over time in order to take advantage of current market dynamics to pick-up shares on weakness. Q2 Earnings In early August, MSI released its Q2 Earnings Report, which was a strong beat on both the top- and bottom-lines. Non-GAAP EPS of $2.07 came in $0.20/share above estimates while revenue of $2.1 billion (+6.6 yoy) was a $40 million beat. Q2 highlights are shown below: MSI As mentioned in the bullets, the quarter was driven by excellent growth in Video Security and Command Center Software ("CCS"), both of which grew 21% yoy. Also, note the solid growth in MSI's Land Mobile Radio ("LMR") business, where sales were +5% yoy. MSI CEO Greg Brown informed investors on the Q2 conference call what is driving MSI's core LMR business: LMR is benefiting from the Tier P25 APX NEXT device (see graphic below) with customers embracing its unique ability to offer the must-have reliability of LMR while seamlessly leveraging broadband features such as remote programming, network extension and location services. MSI Notably, MSI has been able to take advantage of pent-up demand for its traditional civil-agency radios & networks, combined with new vertical markets like video & CCS, to grow its backlog for 8-straight quarters and ended Q2 with a record backlog of $13.4 billion, up a whopping 19% from a year ago and more than 6x Q2's total revenue. However, GAAP operating margin was 16.7% of sales, down from 18.8% in Q2 of last year primarily due to higher costs for semiconductors and higher operating costs for acquisitions. Going Forward: Raised Guidance, Strong Order Ramp-up As a result of the strong Q2 and continuing strength in orders and backlog, MSI raised FY2022 guidance and now expects revenue growth of ~8%, up from prior guidance of 7%. Non-GAAP EPS is now expected to be between $10.03-$10.13/share. The mid-point of the latest guidance ($10.08/share) is up from the mid-point of prior guidance ($9.88/share) by $0.20/share, or ~2%. The updated guidance included expectations of foreign currency headwinds of ~$170 million. MSI's CCS business continues to grow at a brisk pace. On the Q2 conference call, MSI CFO Jason Winkler reported: We also had 3 large Command Center Software in the U.S. -- orders in the U.S., $35 million from a large metropolitan city, $14 million from the Los Angeles Police Department and $11 million from Frederick County, Maryland. We were also awarded an $8 million body-worn camera order from the Detroit Police Department. In aggregate, that is $60 million in new CCS orders during the quarter and indicates that that relatively high-margin software business continues to ramp-up. Significant growth at MSI's Video Security & CCS business should enable MSI to expand its operating margin. On the Q2 conference call referenced earlier, CEO Brown also reported that MSI's Professional & Commercial Radio ("PCR") business continues ramping-up: We had record Q2 product orders at higher prices, including our single largest quarter ever for PCR orders, and we ended the quarter with record Q2 ending backlog. The pricing actions we've taken to offset higher input costs position us well for margin expansion for the back half of this year. During Q2, PCR sales were +15% yoy, and the company said it expects sales to grow 10% in FY2023. Valuation If the company hits the mid-range of EPS guidance ($10.08/share), at the current stock price of $229, that equates to a forward P/E of 22.7x. Maybe not a reason to buy (yet), but certainly a reason not to sell - especially given the very strong backlog. In my last article on MSI in July, shares were at $215/share and I recommended investors BUY the stock (see MSI: Record Backlog, Huge Video TAM Opportunity). The stock is up 6.3% since that article, out-performing the broad S&P500 by ~10%. I would still be a buyer if the market were to give you an opportunity at $215. Risks As I mentioned earlier, the nature of MSI's businesses, combined with the record backlog, implies that MSI will be very resilient over at least the next year-and-a-half in spite of numerous macro-economic headwinds. However, note that free-cash-flow was actually negative in Q2 (-$49 million) compared to $326 million of FCF generated in the prior year. MSI is typically a fairly stable and excellent generator of FCF, but the "miss" this time was due to "planned investments in inventory to navigate the dynamic supply-chain environment and position us to fulfill the record demand we're seeing in Video and LMR." In other words, the company was using free-cash-flow to position itself up for future out-performance.
Many Would Be Envious Of Motorola Solutions' (NYSE:MSI) Excellent Returns On Capital
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...
|MSI||US Communications||US Market|
Return vs Industry: MSI exceeded the US Communications industry which returned -20.7% over the past year.
Return vs Market: MSI exceeded the US Market which returned -22.1% over the past year.
|MSI Average Weekly Movement||3.4%|
|Communications Industry Average Movement||7.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: MSI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MSI's weekly volatility (3%) has been stable over the past year.
About the Company
Motorola Solutions, Inc. provides mission critical communications and analytics in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation, and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce.
Motorola Solutions Fundamentals Summary
|MSI fundamental statistics|
Is MSI overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MSI income statement (TTM)|
|Cost of Revenue||US$4.38b|
Last Reported Earnings
Jul 02, 2022
Next Earnings Date
|Earnings per share (EPS)||7.21|
|Net Profit Margin||14.22%|
How did MSI perform over the long term?See historical performance and comparison
1.4%Current Dividend Yield
Is MSI undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for MSI?
Other financial metrics that can be useful for relative valuation.
|What is MSI's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does MSI's PE Ratio compare to its peers?
|MSI PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
ANET Arista Networks
JNPR Juniper Networks
CSCO Cisco Systems
MSI Motorola Solutions
Price-To-Earnings vs Peers: MSI is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the peer average (29.6x).
Price to Earnings Ratio vs Industry
How does MSI's PE Ratio compare vs other companies in the US Communications Industry?
Price-To-Earnings vs Industry: MSI is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the US Communications industry average (22.9x)
Price to Earnings Ratio vs Fair Ratio
What is MSI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||31.9x|
|Fair PE Ratio||23.3x|
Price-To-Earnings vs Fair Ratio: MSI is expensive based on its Price-To-Earnings Ratio (31.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.3x).
Share Price vs Fair Value
What is the Fair Price of MSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MSI ($229.62) is trading below our estimate of fair value ($323.72)
Significantly Below Fair Value: MSI is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Motorola Solutions forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MSI's forecast earnings growth (11.7% per year) is above the savings rate (1.9%).
Earnings vs Market: MSI's earnings (11.7% per year) are forecast to grow slower than the US market (14.8% per year).
High Growth Earnings: MSI's earnings are forecast to grow, but not significantly.
Revenue vs Market: MSI's revenue (6% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MSI's revenue (6% 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 (159.7%).
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How has Motorola Solutions performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MSI has high quality earnings.
Growing Profit Margin: MSI's current net profit margins (14.2%) are lower than last year (14.6%).
Past Earnings Growth Analysis
Earnings Trend: MSI's earnings have grown significantly by 27.3% per year over the past 5 years.
Accelerating Growth: MSI's earnings growth over the past year (4.4%) is below its 5-year average (27.3% per year).
Earnings vs Industry: MSI earnings growth over the past year (4.4%) underperformed the Communications industry 11.6%.
Return on Equity
High ROE: MSI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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How is Motorola Solutions's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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 (20.6%).
Interest Coverage: MSI's interest payments on its debt are well covered by EBIT (8.1x coverage).
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What is Motorola Solutions's current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Motorola Solutions Dividend Yield vs Market|
|Company (Motorola Solutions)||1.4%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Communications)||3.6%|
|Analyst forecast in 3 Years (Motorola Solutions)||1.5%|
Notable Dividend: MSI's dividend (1.38%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: MSI's dividend (1.38%) is low compared to the top 25% of dividend payers in the US market (4.69%).
Stability and Growth of Payments
Stable Dividend: MSI's dividends per share have been stable in the past 10 years.
Growing Dividend: MSI's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (43.1%), MSI's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (52.8%), MSI's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Greg Brown (62 yo)
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
|Greg Brown's Compensation vs Motorola Solutions Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jul 02 2022||n/a||n/a|
|Apr 02 2022||n/a||n/a|
|Dec 31 2021||US$20m||US$1m|
|Oct 02 2021||n/a||n/a|
|Jul 03 2021||n/a||n/a|
|Apr 03 2021||n/a||n/a|
|Dec 31 2020||US$23m||US$938k|
|Sep 26 2020||n/a||n/a|
|Jun 27 2020||n/a||n/a|
|Mar 28 2020||n/a||n/a|
|Dec 31 2019||US$24m||US$1m|
|Sep 28 2019||n/a||n/a|
|Jun 29 2019||n/a||n/a|
|Mar 30 2019||n/a||n/a|
|Dec 31 2018||US$20m||US$1m|
|Sep 29 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||US$15m||US$1m|
|Sep 30 2017||n/a||n/a|
|Jul 01 2017||n/a||n/a|
|Apr 01 2017||n/a||n/a|
|Dec 31 2016||US$12m||US$1m|
|Oct 01 2016||n/a||n/a|
|Jul 02 2016||n/a||n/a|
|Apr 02 2016||n/a||n/a|
|Dec 31 2015||US$13m||US$1m|
Compensation vs Market: Greg's total compensation ($USD19.98M) is above average for companies of similar size in the US market ($USD13.05M).
Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.
Experienced Management: MSI's management team is considered experienced (3.8 years average tenure).
Experienced Board: MSI's board of directors are considered experienced (7.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MSI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|12 Sep 22||SellUS$645,279||Cynthia Yazdi||Individual||2,546||US$253.45|
|12 Aug 22||SellUS$127,145||Cynthia Yazdi||Individual||500||US$254.29|
|10 Aug 22||SellUS$224,849||Cynthia Yazdi||Individual||886||US$253.78|
|08 Aug 22||SellUS$1,967,523||Mark Hacker||Individual||7,900.11||US$249.05|
|07 Jun 22||SellUS$5,493,789||Gregory Brown||Individual||25,000||US$220.99|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||72,884||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Motorola Solutions, Inc.'s employee growth, exchange listings and data sources
- Name: Motorola Solutions, Inc.
- Ticker: MSI
- Exchange: NYSE
- Founded: 1928
- Industry: Communications Equipment
- Sector: Tech
- Implied Market Cap: US$38.320b
- Shares outstanding: 166.89m
- Website: https://www.motorolasolutions.com
Number of Employees
- Motorola Solutions, Inc.
- 500 West Monroe Street
- Suite 4400
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MSI||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Jan 1968|
|0K3H||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Jan 1968|
|MTLA||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Jan 1968|
|MSI *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jan 1968|
|MTLA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jan 1968|
|MOT-U||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Jan 1968|
|MOSI||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Jan 1968|
|MSI||BASE (Buenos Aires Stock Exchange)||CEDEAR EACH REP 1/5 ORD USD3||AR||ARS||Sep 2000|
|M1SI34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 4 REPR 1 COM||BR||BRL||Jan 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
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.