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MSI

S&P 500
Neutral · 48/100

Motorola Solutions

Information Technology
Communications Equipment

$470.36

0.8%

Updated Today 11:30 AM ET

Report Card

MSI at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 48/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▼ Down 2.4% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$70.16B

P/E

37.15x

Forward P/E (est.)

35.92x

ROE

90.4%

Revenue Growth

8.3%

EPS Growth

3.4%

Profit Margin

17.6%

FCF Yield

3.0%

Debt / Equity

3.8x

ROIC

53.0%

Interest Coverage

8.3x

Current Ratio

1.07x

Dividend Yield

1.2%

Implied Growth (rev. DCF)

5.1%

Rating Score

48/100

Business Overview
Research

Motorola Solutions (MSI) is a large-cap company in the Communications Equipment industry, part of the Information Technology sector of the S&P 500, with a market value around $70.16B.

In its latest reported year it generated about $11.68B in revenue and $2.15B in net profit.

Our model rates MSI Neutral (48/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (10 years of history).

Wide moat signalsMoat evidence score: 88/100

The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.

Gross margin level77/100

50.8% average over the last 3 years

Gross margin stability80/100

±1.6 pts around 48.9% across 10 years

Revenue durability89/100

grew in 8 of the last 9 year-over-year periods

Free-cash-flow consistency100/100

positive in 10 of 10 years

Return on invested capital100/100

53.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what MSI's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. MSI trades near $470.36, above its 50-day average ($412.26) and 200-day average ($420.25). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 59 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. MSI's is $9.91 (~2.1% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month MSI found buyers near $389.02 (support) and sellers near $424.49 (resistance); its 52-week range is $359.36–$492.22. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

9.3%

2/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $6.04B in 2016 to $11.68B in 2025, a 7.6% compound annual growth rate. The most recent year grew a steady 8.3% year over year. Slower, mature growth is common for established businesses.

Profitability
Research
4/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

51.7%

Operating Margin

25.6%

Net Margin

18.4%

ROE

90.4%

Motorola Solutions keeps about 17.6% of each sales dollar as net profit, with a 51.7% gross margin and 25.6% operating margin. Return on equity is 90.4% and return on invested capital about 53.0%. Margins this wide usually signal pricing power or a cost advantage.

Debt Analysis
Research
2/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$1.90B

Net Debt

$1.01B

Net Debt / EBITDA

0.34x

Debt / Equity

3.8x

Leverage: debt-to-equity is 3.8x, and operating profit covers interest about 8.3x, with a current ratio of 1.1x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $1.90B of total debt against $886.00M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$2.84B

Free Cash Flow

$2.57B

FCF Margin

22.0%

In the latest year Motorola Solutions produced about $2.84B of operating cash flow and $2.57B of free cash flow after capital spending. That is a free-cash-flow yield of about 3.0% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Dividend Safety

Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.

SafeSafety score: 100/100

The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.

Dividend yield

1.2%

Per share (latest FY)

$4.48

Total paid (latest FY)

$728.00M

History on record

10 years

Free-cash-flow coverage100/100

dividend uses 28% of free cash flow

Earnings payout ratio100/100

34% of net income paid out

Raise streak100/100

total dividends increased 9 years in a row

Cut history100/100

no cuts in the last 10 years on record

Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

37.15x

P/S

5.72x

P/B

30.77x

EV / EBITDA

MSI trades at 37.2x trailing earnings (about 35.9x on estimated forward earnings), 5.7x sales, and 30.8x book value. Reverse-engineering today's price implies the market expects roughly 5.1% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$339.14

Current price

$470.36

-28% · Above fair-value estimate

Starting FCF (latest 10-K)

$2.57B

Growth, years 1–5

8.3%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$23.98B
PV of terminal value$32.32B
Estimated equity value$56.30B
Shares outstanding166M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where MSI sits versus its Information Technology sector peers in the S&P 500.

TTM P/E
37.2xFair
Forward P/E
35.9xFair
P/S ratio
5.7xFair
Revenue growth
8.3%Average
EPS growth
3.4%Average
Gross margin
51.7%Average
Net margin
17.6%Average
ROE
90.4%Strong

Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How MSI stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (230 S&P 500 companies), MSI ranks #70 of 230 by our overall rating. It trades at roughly in line versus the sector on earnings (37.2x P/E vs. 38.9x median) with a higher return on equity (90.4% vs. 17.5%) and slower revenue growth (8.3% vs. 17.7%).

P/E vs sector

37.2x

median 38.9x

ROE vs sector

90.4%

median 17.5%

Growth vs sector

8.3%

median 17.7%

Sector rank

#70

of 230 by rating

CompanyP/ERev Gr.Rating
MSIThis stock37.2x8.3%Neutral· 48
CIEN131.4x30.6%Neutral· 52
LITE154.7x69.0%Neutral· 43
ANET64.9x30.6%Strong· 77
FFIV32.5x9.7%Favorable· 62
CSCO39.7x9.2%Favorable· 62
NXPI23.6x2.4%Favorable· 61
UMC30.5x2.2%Favorable· 60
Information Technology median38.9x17.7%0/100

Valuation vs. quality map

sector medianCIENLITEANETFFIVCSCONXPIUMCMSIP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $470.36 today · expected CAGR -1%10%

Metric20262027202820292030
Revenue$12.62B$13.63B$14.72B$15.89B$17.16B
Net income$2.27B$2.45B$2.65B$2.86B$3.09B
EPS$15.22$16.44$17.76$19.18$20.71
Share price (low)$334.95$361.75$390.68$421.94$455.69
Share price (high)$563.32$608.39$657.06$709.63$766.40
CAGR (low–high)-29% / 20%-12% / 14%-6% / 12%-3% / 11%-1% / 10%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for MSI:

  • High net margins (17.6%) point to pricing power or efficiency.
  • Strong return on equity (90.4%) shows capital is put to work well.
Bear Case

The case against MSI:

  • Elevated leverage (debt/equity 3.8x) adds financial risk.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 37.2x earnings, disappointing results could compress the multiple.

Balance-sheet risk — debt/equity of 3.8x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Motorola Solutions is a large-cap information technology business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 37.2x earnings, which our model scores Neutral (48/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Analyst Ratings

What 20 Wall Street analysts covering MSI recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.

Buy
consensus · score 4.1 / 5 across 20 analysts
Strong Buy 5Buy 12Hold 3Sell 0Strong Sell 0

Analysts have turned more positive over the last three months (+6 pts of buy ratings).

Latest SEC Filings

MSI's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.

In the Idea Lab

MSI — frequently asked questions

Is MSI a good stock to buy?

We don't give buy or sell advice. Our model rates Motorola Solutions Neutral (48/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is MSI's rating on The Stocks School?

Motorola Solutions currently scores 48/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does MSI's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Motorola Solutions's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for MSI calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this MSI analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell MSI. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.