Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $76.75B
• Dividend Yield: 0.93%
• Average Volume (3M): 953.47K
• Price to Earnings (P/E): 37.2
• Beta (1Y): 0.77
• Revenue Growth: 6.45%
• EPS Growth: 44.24%
• Country: US
• Employees: 21,000
• Sector: Technology
• Sector Strength: 86
• Industry: Communication Equipment
• EPS (TTM): 3.57
• Shares Outstanding: 166,603,900
• 10 Day Avg. Volume: 1,044,910
• 30 Day Avg. Volume: 953,465
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 6.83
• Enterprise Value/Gross Profit: 13.31
• Enterprise Value/Ebitda: 22.74
• 1Y Price Target: $512.17
• Price Target Upside: 12.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 75 Outperform
• Price Target: $519.00 ▲(13.91% Upside)

Motorola Solutions' strong financial performance and positive earnings call are the most significant factors driving the overall score. The company's robust revenue growth, effective cash flow management, and strategic acquisitions support a positive outlook. However, high leverage and stretched valuation pose risks. Technical indicators suggest bullish momentum, but caution is warranted due to potential overbought conditions.

Positive Factors

Earnings

Motorola, the largest global provider of public safety technology, reported second-quarter results above consensus.

Growth Strategy

Motorola completed the acquisition of Silvus Technologies, which is seen as strategic for expanding the U.S. Department of Defense's drone capabilities.

Revenue Outlook

Management raised its revenue outlook by $250 million, reflecting positive sentiment about future growth prospects.

Technology Advantage

The new SVX body camera, incorporating Motorola's leading voice technology, provides a competitive advantage and positions the company for potential share gains.

Negative Factors

Acquisition Size Concerns

The acquisition is viewed as a positive step, although larger than MSI traditionally has done, it is believed it could be accretive in near-term.

Growth Guidance

Some investors may be concerned with the organic 2H growth guidance implying revenue growth in-line or slightly below expectations.

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 through a diversified model that includes several key streams. Primarily, the company earns money from the sale of hardware products such as two-way radios, video surveillance equipment, and body-worn cameras. Additionally, Motorola Solutions offers software solutions and services, including command center software, analytics, and cybersecurity services, which contribute significantly to its recurring revenue through subscription models and long-term contracts. The company also benefits from maintenance and support services for its products, which provide ongoing revenue. Strategic partnerships with government agencies, public safety organizations, and commercial enterprises enhance its market reach and drive sales. Furthermore, investments in innovation and technology development allow Motorola Solutions to maintain a competitive edge, attract new customers, and expand its service offerings.

Motorola Solutions Financial Statement Overview

Summary

Motorola Solutions demonstrates strong financial performance with consistent revenue and profit growth, supported by robust margins. The high return on equity and efficient cash flow generation are positive indicators. However, the balance sheet reveals high leverage, which may present risks if not managed carefully.

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	11.09B	10.82B	9.98B	9.11B	8.17B	7.41B
Gross Profit	5.70B	5.51B	4.97B	4.23B	4.04B	3.61B
EBITDA	3.33B	2.60B	2.75B	2.19B	2.21B	1.82B
Net Income	2.12B	1.58B	1.71B	1.36B	1.25B	949.00M
Balance Sheet
Total Assets	16.41B	14.60B	13.34B	12.81B	12.19B	10.88B
Cash, Cash Equivalents and Short-Term Investments	3.21B	2.10B	1.71B	1.32B	1.87B	1.25B
Total Debt	8.33B	6.55B	6.55B	6.55B	6.13B	5.70B
Total Liabilities	14.43B	12.88B	12.60B	12.68B	12.21B	11.42B
Stockholders Equity	1.97B	1.70B	724.00M	116.00M	-40.00M	-558.00M
Cash Flow
Free Cash Flow	2.38B	2.13B	1.79B	1.57B	1.59B	1.40B
Operating Cash Flow	2.61B	2.39B	2.04B	1.82B	1.84B	1.61B
Investing Cash Flow	-926.00M	-507.00M	-414.00M	-1.39B	-742.00M	-437.00M
Financing Cash Flow	73.00M	-1.45B	-1.29B	-906.00M	-429.00M	-966.00M

Motorola Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 455.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSI, the sentiment is Positive. The current price of 455.62 is above the 20-day moving average (MA) of 453.75, above the 50-day MA of 432.64, and above the 200-day MA of 441.26, indicating a bullish trend. The MACD of 8.57 indicates Positive momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSI.

Motorola Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	80 Outperform	$265.87B	25.79	22.58%	2.37%	5.30%	3.07%
MSI	75 Outperform	$76.75B	37.18	152.71%	0.93%	6.45%	44.24%
HPE	73 Outperform	$29.60B	23.19	6.39%	2.31%	11.63%	-24.41%
ERIC	70 Outperform	$26.55B	15.82	19.63%	3.45%	0.98%	―
ZBRA	67 Neutral	$16.25B	30.19	15.87%	―	19.12%	138.53%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
NOK	57 Neutral	$23.30B	22.13	4.31%	3.61%	-2.39%	157.33%

Motorola Solutions Corporate Events

Motorola Solutions Completes Acquisition of Silvus Technologies

On August 6, 2025, Motorola Solutions completed its acquisition of Silvus Technologies Holdings Inc., a leader in mission-critical mobile ad-hoc networks. This acquisition, valued at $4.4 billion, positions Motorola Solutions to expand into the rapidly growing market for drone and unmanned systems, enhancing their offerings in defense, border security, and public safety. The integration of Silvus’ advanced MANET technology, which supports secure communications in challenging environments, is expected to complement Motorola’s existing radio and video technologies, broadening their reach to global defense and public safety customers.

Motorola Solutions Secures $1.5B for Silvus Acquisition

On July 21, 2025, Motorola Solutions, Inc. entered into two significant credit agreements to support its acquisition of Silvus Technologies Holdings Inc. The first is a 364-Day Credit Agreement with Mizuho Bank, Ltd., offering $750 million for a senior unsecured delayed draw term loan. The second is a Three-Year Credit Agreement with Bank of America, N.A., also providing $750 million. Both loans are contingent on the closing of the Silvus acquisition and will be used to finance the acquisition, refinance Silvus’s existing debt, and cover related expenses. These agreements are expected to strengthen Motorola’s market position by expanding its technological capabilities through the acquisition.

Motorola Solutions Raises $2 Billion in Senior Notes

On June 16, 2025, Motorola Solutions successfully completed a public underwritten offering of senior notes, raising a total of $2 billion. This financial move is expected to impact the company’s operations by potentially enhancing its liquidity and supporting its strategic initiatives.

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.

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.