Motorola (MSI) Stock Analysis
This is a peer-relative look at Motorola (MSI): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Technology Hardware & Equipment peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | MSI |
|---|---|
| Name | Motorola Solutions, Inc. |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Technology Hardware & Equipment |
| GICS Industry | Communications Equipment |
| GICS Sub-Industry | Communications Equipment |
| Market Capitalization | 85.07 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | January 2, 1962 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| Total Return (1Y) | 35.63% | 19.81% |
| Total Return (3Y, Annualized) | 20.55% | 26.50% |
| Total Return (5Y, Annualized) | 17.37% | 9.52% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 25.11% | 55.75% |
| Beta (5Y) | 0.84 | 1.39 |
| Max Drawdown (5Y) | -27.23% | -58.83% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.25 | 0.28 |
| Sortino Ratio (1Y) | 1.90 | 0.40 |
Profitability
ROE (TTM)
Motorola (MSI) posts ROE of 76.98%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
MSI
Technology Hardware & Equipment industry group
76.98%
Group distribution
- MSI
- 76.98%
- Max
- 42.47%
- Q3
- 19.13%
- Median
- 11.00%
- Q1
- 1.63%
- Min
- -20.62%
Largest peers
- AAPL
- 142.26%
- SNDK
- 141.17%
- MSI
- 76.98%
- APH
- 40.08%
- ANET
- 33.52%
- CSCO
- 27.32%
- DELL
- --
Net Margin (TTM)
Motorola (MSI) keeps 16.54% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
MSI
Technology Hardware & Equipment industry group
16.54%
Group distribution
- Max
- 27.60%
- MSI
- 16.54%
- Q3
- 11.66%
- Median
- 4.08%
- Q1
- 0.00%
- Min
- -11.02%
Largest peers
- SNDK
- 67.04%
- ANET
- 39.97%
- AAPL
- 27.60%
- CSCO
- 20.95%
- APH
- 17.95%
- MSI
- 16.54%
- DELL
- 7.53%
Operating Margin (TTM)
Motorola (MSI) turns 24.62% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
MSI
Technology Hardware & Equipment industry group
24.62%
Group distribution
- Max
- 36.27%
- MSI
- 24.62%
- Q3
- 18.36%
- Median
- 8.84%
- Q1
- 1.46%
- Min
- -21.39%
Largest peers
- SNDK
- 79.59%
- ANET
- 44.90%
- AAPL
- 31.13%
- APH
- 29.68%
- CSCO
- 27.72%
- MSI
- 24.62%
- DELL
- 12.02%
Profitability Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| ROE (TTM) | 76.98% | 11.00% |
| ROA (TTM) | 9.64% | 4.78% |
| Net Margin (TTM) | 16.54% | 4.08% |
| Operating Margin (TTM) | 24.62% | 8.84% |
| Gross Margin (TTM) | 51.75% | 39.87% |
Growth
Revenue Growth
Motorola (MSI) grew revenue 8.00%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Motorola (MSI) grew earnings per share 38.14%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 8.00% | 10.87% |
| Revenue Growth (3Y CAGR) | 8.63% | 2.79% |
| EPS Growth (YoY) | 38.14% | 14.29% |
| EPS Growth (3Y CAGR) | 17.15% | 3.49% |
Financial Strength
Current Ratio (MRQ)
Motorola (MSI) has current ratio of 1.10, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
MSI
Technology Hardware & Equipment industry group
1.10
Group distribution
- Max
- 5.34
- Q3
- 3.02
- Median
- 1.95
- Q1
- 1.32
- MSI
- 1.10
- Min
- 0.17
Largest peers
- ANET
- 3.29
- SNDK
- 2.58
- APH
- 1.94
- MSI
- 1.10
- AAPL
- 1.02
- DELL
- 0.96
- CSCO
- 0.93
Debt / Equity (MRQ)
Motorola (MSI) has debt-to-equity ratio of 3.46, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.
MSI
Technology Hardware & Equipment industry group
3.46
Group distribution
- MSI
- 3.46
- Max
- 1.76
- Q3
- 0.78
- Median
- 0.24
- Q1
- 0.04
- Min
- 0.01
Largest peers
- MSI
- 3.46
- APH
- 1.03
- AAPL
- 0.84
- CSCO
- 0.62
- SNDK
- 0.01
- ANET
- --
- DELL
- --
Financial Strength Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.10 | 1.95 |
| Debt / Equity (MRQ) | 3.46 | 0.24 |
| Net Debt / EBITDA | 2.70 | 0.16 |
Dividends
Dividend Yield (TTM)
Motorola (MSI) has dividend yield of 0.94%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.
MSI
Technology Hardware & Equipment industry group
0.94%
Group distribution
- MSI
- 0.94%
- Max
- 0.73%
- Q3
- 0.31%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 1.73%
- MSI
- 0.94%
- DELL
- 0.73%
- APH
- 0.70%
- AAPL
- 0.31%
- ANET
- 0.00%
- SNDK
- 0.00%
Dividend Payout Ratio (TTM)
Motorola (MSI) has payout ratio of 38.94%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.
MSI
Technology Hardware & Equipment industry group
38.94%
Group distribution
- MSI
- 38.94%
- Max
- 32.27%
- Q3
- 14.48%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CSCO
- 49.85%
- MSI
- 38.94%
- APH
- 21.74%
- DELL
- 13.43%
- AAPL
- 11.80%
- ANET
- 0.00%
- SNDK
- 0.00%
Dividend Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.94% | 0.00% |
| Dividend Payout Ratio (TTM) | 38.94% | 0.00% |
Valuation
P/E Ratio (TTM)
Motorola (MSI) trades at P/E ratio of 41.39, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
MSI
Technology Hardware & Equipment industry group
41.39
Group distribution
- Max
- 69.48
- MSI
- 41.39
- Q3
- 41.02
- Median
- 26.39
- Q1
- 19.36
- Min
- 6.07
Largest peers
- ANET
- 45.79
- MSI
- 41.39
- AAPL
- 38.13
- APH
- 32.43
- CSCO
- 28.18
- DELL
- 19.10
- SNDK
- 6.67
P/S Ratio (TTM)
Motorola (MSI) trades at 6.75 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
MSI
Technology Hardware & Equipment industry group
6.75
Group distribution
- Max
- 11.30
- MSI
- 6.75
- Q3
- 5.82
- Median
- 2.56
- Q1
- 1.05
- Min
- 0.00
Largest peers
- ANET
- 18.15
- AAPL
- 10.39
- MSI
- 6.75
- CSCO
- 5.84
- APH
- 5.57
- SNDK
- 4.10
- DELL
- 1.38
P/B Ratio (MRQ)
Motorola (MSI) trades at 27.75 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
MSI
Technology Hardware & Equipment industry group
27.75
Group distribution
- MSI
- 27.75
- Max
- 10.75
- Q3
- 5.52
- Median
- 3.17
- Q1
- 1.79
- Min
- 0.33
Largest peers
- AAPL
- 44.39
- MSI
- 27.75
- ANET
- 13.12
- APH
- 10.75
- CSCO
- 7.36
- SNDK
- 6.63
- DELL
- -147.32
Valuation Metrics
| Metric | Current stock: MSI | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 41.39 | 26.39 |
| P/S Ratio (TTM) | 6.75 | 2.56 |
| P/B Ratio (MRQ) | 27.75 | 3.17 |
| Free Cash Flow Yield (TTM) | 2.24% | 2.83% |