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 Analysis

Moderate growth potential with imperfect balance sheet.


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

Stable Share Price: MSI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

MSI

-5.3%

US Communications

-4.2%

US Market


1 Year Return

28.4%

MSI

-13.5%

US Communications

14.0%

US Market

Return vs Industry: MSI exceeded the US Communications industry which returned -13.5% over the past year.

Return vs Market: MSI exceeded the US Market which returned 14% over the past year.


Shareholder returns

MSIIndustryMarket
7 Day-1.7%-5.3%-4.2%
30 Day1.2%-9.2%-1.8%
90 Day8.6%-2.5%2.6%
1 Year30.3%28.4%-11.7%-13.5%16.3%14.0%
3 Year143.3%130.2%25.5%17.5%43.2%34.0%
5 Year194.8%166.8%48.6%31.9%65.9%47.6%

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?

34.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSI ($181.8) is trading above our estimate of fair value ($169.23)

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


Price To Earnings Ratio

PE vs Industry: MSI is poor value based on its PE Ratio (34.9x) compared to the Communications industry average (23.7x).

PE vs Market: MSI is poor value based on its PE Ratio (34.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: MSI is poor value based on its PEG Ratio (1.8x)


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

Future Growth

How is Motorola Solutions forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

19.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSI's forecast earnings growth (19.3% per year) is above the savings rate (1.7%).

Earnings vs Market: MSI's earnings (19.3% per year) are forecast to grow faster than the US market (13.1% per year).

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

Revenue vs Market: MSI's revenue (4.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MSI's revenue (4.5% 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 (369.6%).


Next Steps

Past Performance

How has Motorola Solutions performed over the past 5 years?

41.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSI has a large one-off loss of $484.0M impacting its December 31 2019 financial results.

Growing Profit Margin: MSI's current net profit margins (11%) are lower than last year (13.2%).


Past Earnings Growth Analysis

Earnings Trend: MSI has become profitable over the past 5 years, growing earnings by 41.9% per year.

Accelerating Growth: MSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MSI had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Communications industry average (-19.9%).


Return on Equity

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


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 (35.7%).

Interest Coverage: MSI's interest payments on its debt are well covered by EBIT (7.9x 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?

1.41%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 25 2020Ex Dividend DateMar 12 2020Dividend Pay DateApr 15 202034 days from Ex DividendBuy in the next 15 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: MSI's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: MSI's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MSI has been paying a dividend for less than 10 years.

Growing Dividend: MSI's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.1%), 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 (29.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Greg Brown (59yo)

8.8yrs

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 ($USD20.35M) is above average for companies of similar size in the US market ($USD10.82M).

Compensation vs Earnings: Greg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Brown
Chairman & CEO8.8yrsUS$20.35m0.24% $74.6m
Gino Bonanotte
Executive VP & CFO6.3yrsUS$4.85m0.027% $8.3m
Mark Hacker
Executive VP5.1yrsUS$3.69m0.0014% $446.6k
John Molloy
Executive Vice President of Products & Sales2.6yrsUS$4.08m0.016% $5.1m
Kelly Mark
Executive Vice President of Software & Services9.1yrsUS$2.12m0.015% $4.5m
Daniel Pekofske
Corporate VP & Chief Accounting Officer1.4yrsno data0.0016% $508.6k
Mahesh Saptharishi
Chief Technology Officer0.9yrsno datano data
Tim Yocum
Vice President of Investor Relations0yrsno datano data
Cynthia Yazdi
Senior VP and Chief of Staff1.5yrsno data0.0026% $803.2k
Manuel Cuevas-Trisán
Chief Human Resources Officer and Corporate VP of Employment Law & Data Protection0yrsno datano data

3.8yrs

Average Tenure

47yo

Average Age

Experienced Management: MSI's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Brown
Chairman & CEO8.8yrsUS$20.35m0.24% $74.6m
Egon Durban
Independent Director4.5yrsUS$290.34kno data
Gregory Mondre
Independent Director4.5yrsUS$300.43k0.000040% $12.4k
Joseph Tucci
Independent Director2.8yrsUS$290.06k0.00084% $260.5k
Kenneth Denman
Lead Independent Director1.1yrsUS$301.31k0.0016% $508.6k
Judy Lewent
Independent Director9.1yrsUS$315.06k0.020% $6.3m
Clayton Jones
Independent Director5.1yrsUS$300.06kno data
Anne Pramaggiore
Independent Director7.1yrsUS$310.30kno data

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: MSI's board of directors are considered experienced (4.8 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Top Shareholders

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$31.011b
  • Shares outstanding: 170.58m
  • 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
MTLXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
MTLADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
MOT-UETLX (Eurotlx)YesCommon StockITEURJan 1968
MOSIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
M1SI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

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 Integration, and Services and Software. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video solutions, as well as the implementation, optimization, and integration of networks, devices, software, and applications for government, public safety and first-responder agencies, municipalities, and commercial and industrial customers. Its products include two-way portable and vehicle-mounted radios, accessories, software features, and upgrades; video cameras; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Services segment provides repair, technical support, and hardware maintenance services. This segment also offers monitoring, software updates, and cybersecurity services; and public safety and enterprise command center software suite, unified communications applications, and video software solutions. It serves for government, public safety, and commercial communication networks. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:36
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.