Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $68.12B
• Dividend Yield: 1.07%
• Average Volume (3M): 943.10K
• Price to Earnings (P/E): 34.0
• Beta (1Y): 0.79
• Revenue Growth: 7.45%
• EPS Growth: 46.78%
• Country: US
• Employees: 21,000
• Sector: Technology
• Sector Strength: 79
• Industry: Communication Equipment
• EPS (TTM): 3.18
• Shares Outstanding: 166,915,800
• 10 Day Avg. Volume: 811,599
• 30 Day Avg. Volume: 943,104
• PEG Ratio: 2.99
• Price to Book (P/B): 372.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.55
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 1.13
• Enterprise Value/Gross Profit: 8.66
• Enterprise Value/Ebitda: 4.47
• 1Y Price Target: $506.17
• Price Target Upside: 24.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: $465.00 ▲(14.12%Upside)

Motorola Solutions' overall stock score is driven by strong financial performance and positive earnings call sentiment, reflecting robust growth in software and services. While the technical analysis indicates potential bearish trends, the company's strategic initiatives and reaffirmed guidance support a positive outlook. Valuation concerns persist, but the company's consistent financial results and strategic focus position it for continued success.

Positive Factors

Acquisition Strategy

The acquisition of Silvus adds new capabilities in high bandwidth secure mobile data and video, fitting into MSI's acquisition strategy.

Financial Performance

The acquisition is expected to be accretive to non-GAAP EPS within 12 months of closing, suggesting a beneficial financial impact.

Market Expansion

Silvus acquisition opens up new and emerging use cases and opportunities.

Negative Factors

Competitive Landscape

The acquisition represents the largest deal for Motorola Solutions, reflecting the company's capacity for significant share repurchases or further mergers and acquisitions, which could increase competitive pressures.

Deal Size Concerns

The acquisition is larger than MSI traditionally has done, raising questions about integration and risk.

Market Dependence

Silvus's technology is expected to be heavily used for future Department of Defense drone swarm operations, potentially tying company success to specific government projects.

Motorola Solutions Business Overview & Revenue Model

Company Description

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. Its land mobile radio communications and video security and access control devices include two-way portable and vehicle-mounted radios, fixed and mobile video cameras, and accessories; 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 Software and 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, unified communications applications, and video software solutions through on-premise and as a service. It serves government, public safety, and commercial customers. 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.

How the Company Makes Money

Motorola Solutions generates revenue primarily through the sale of its communication equipment, software, and services. The company has two main segments: Products and Systems Integration, and Software and Services. The Products and Systems Integration segment includes sales of devices like two-way radios and video security systems, which are crucial for public safety and enterprise customers. The Software and Services segment provides recurring revenue through subscription-based models, offering command center software, video analytics, and managed services. Key revenue streams include long-term contracts with government entities and enterprises, leveraging its technology to enhance operational efficiency and security. Strategic partnerships with agencies and organizations globally also play a significant role in driving Motorola Solutions' earnings.

Motorola Solutions Financial Statement Overview

Summary

Motorola Solutions demonstrates strong financial performance with consistent revenue growth, robust profit margins, and efficient cash flow generation. The income statement highlights a healthy gross profit margin and net profit margin, though the high debt-to-equity ratio in the balance sheet poses some risk. Overall, the company maintains a solid financial standing with potential growth opportunities, despite leverage-related concerns.

Income Statement

Motorola Solutions shows strong revenue growth with a consistent upward trend over the years, with recent TTM revenue increasing by 10.2% compared to the previous year. The company maintains a robust gross profit margin of 51% and a net profit margin of 18.7% for the TTM, indicating strong profitability. The EBIT and EBITDA margins are also healthy at 25.2% and 28.8%, respectively, showcasing efficient operations. Overall, the income statement reflects stability and growth, although slight fluctuations in EBITDA margins warrant attention.

Balance Sheet

The balance sheet of Motorola Solutions indicates moderate leverage with a debt-to-equity ratio of 3.71, reflecting higher debt levels compared to equity. The return on equity is impressive at 124.7% for the TTM, driven by strong net income relative to equity. However, the equity ratio is low at 11.4%, suggesting reliance on liabilities for asset financing. While profitability is strong, the high leverage poses a risk if market conditions change unfavorably.

Cash Flow

The cash flow statement shows a robust operating cash flow to net income ratio of 1.23, indicating effective cash generation from operations. Free cash flow growth is steady, with a significant increase in recent periods, highlighting good cash management. The free cash flow to net income ratio is 1.11, supporting the company's profitability. Despite strong cash flow metrics, continuous monitoring of capital expenditure is recommended to maintain healthy free cash flow levels.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
10.96B	10.82B	9.98B	9.11B	8.17B	7.41B
	Gross Profit
5.58B	5.51B	4.97B	4.23B	4.04B	3.61B
	EBIT
2.76B	2.69B	2.29B	1.66B	1.67B	1.38B
	EBITDA
3.16B	2.65B	2.75B	2.26B	2.26B	1.86B
	Net Income Common Stockholders
2.05B	1.58B	1.71B	1.36B	1.25B	949.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.56B	2.10B	1.71B	1.32B	1.87B	1.25B
	Total Assets
14.43B	14.60B	13.34B	12.81B	12.19B	10.88B
	Total Debt
6.53B	6.55B	6.55B	6.55B	6.01B	5.58B
	Net Debt
4.96B	4.45B	4.84B	5.23B	4.13B	4.32B
	Total Liabilities
12.77B	12.88B	12.60B	12.68B	12.21B	11.42B
	Stockholders Equity
1.64B	1.70B	724.00M	116.00M	-40.00M	-558.00M
Cash Flow		Free Cash Flow
2.27B	2.13B	1.79B	1.57B	1.59B	1.40B
	Operating Cash Flow
2.52B	2.39B	2.04B	1.82B	1.84B	1.61B
	Investing Cash Flow
-937.00M	-507.00M	-414.00M	-1.39B	-742.00M	-437.00M
	Financing Cash Flow
-1.53B	-1.45B	-1.29B	-906.00M	-429.00M	-966.00M

Motorola Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 407.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSI, the sentiment is Negative. The current price of 407.46 is below the 20-day moving average (MA) of 416.30, below the 50-day MA of 417.09, and below the 200-day MA of 445.05, indicating a bearish trend. The MACD of -2.82 indicates Positive momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 12.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSI.

Motorola Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSI	73 Outperform	$68.12B	34.05	189.18%	1.07%	7.45%	46.78%
ZBRA	73 Outperform	$14.42B	26.81	16.16%	―	16.72%	109.89%
JNPR	72 Outperform	$11.96B	34.19	7.58%	2.46%	-2.56%	52.05%
HPE	70 Outperform	$23.16B	18.24	6.39%	2.95%	11.63%	-24.41%
ERIC	68 Neutral	$27.93B	178.68	1.67%	0.31%	-2.08%	―
NOK	64 Neutral	$27.05B	34.60	5.70%	3.98%	-9.96%	-6.83%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%

Motorola Solutions Corporate Events

Motorola Solutions Acquires Silvus Technologies for $4.4 Billion

On May 27, 2025, Motorola Solutions announced a definitive agreement to acquire Silvus Technologies for $4.4 billion. Silvus, based in Los Angeles, specializes in software-defined high-speed mobile ad-hoc network technology, which supports secure data, video, and voice communications in challenging environments. The acquisition aims to enhance Motorola’s intelligent network capabilities and expand its reach in mission-critical communications, addressing safety, security, and defense needs. The transaction is expected to close in the third or fourth quarter of 2025, pending regulatory approvals.

The most recent analyst rating on (MSI) stock is a Buy with a $460.00 price target. To see the full list of analyst forecasts on Motorola Solutions stock, see the MSI Stock Forecast page.

Motorola Solutions Shareholders Approve Key Proposals

On May 15, 2025, Motorola Solutions held its Annual Meeting of Shareholders, where all director nominees were elected for a one-year term. Additionally, shareholders ratified the appointment of PricewaterhouseCoopers LLP as the independent public accounting firm for 2025 and approved the company’s executive compensation on an advisory basis.

The most recent analyst rating on (MSI) stock is a Buy with a $460.00 price target. To see the full list of analyst forecasts on Motorola Solutions stock, see the MSI Stock Forecast page.

Motorola Solutions Secures New $2.25 Billion Credit Facility

On April 25, 2025, Motorola Solutions entered into a new $2.25 billion revolving credit agreement with JPMorgan Chase Bank, replacing its previous agreement from March 2021. This new facility, maturing in 2030, supports the company’s general corporate purposes and includes options for extension and increased commitments, reflecting Motorola’s strategic financial planning and strengthening its operational flexibility.