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Motorola Solutions (MSI)
NYSE:MSI
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Motorola Solutions (MSI) AI Stock Analysis

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MSI

Motorola Solutions

(NYSE:MSI)

Rating:79Outperform
Price Target:
$482.00
▲(9.80%Upside)
Motorola Solutions scores well due to its strong financial performance and positive earnings call, highlighting record growth and effective strategies. While technical analysis suggests stability, the valuation appears stretched, and high leverage warrants caution. Corporate events further strengthen the outlook, bolstering the company's strategic position.
Positive Factors
Competitive Advantage
The new SVX body camera, incorporating Motorola's leading voice technology, provides a competitive advantage and positions the company for potential share gains.
Expansion and Growth
The acquisition of Silvus expands Motorola's addressable market and growth potential, particularly in the Defense Tech space.
Financial Performance
The acquisition of Silvus is considered a long-term positive, as it increases exposure to growth markets and is expected to be EPS accretive.
Negative Factors
Acquisition Size
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.
Integration Challenges
This acquisition represents the largest deal for Motorola Solutions, reflecting the company's capacity for significant share repurchases or further mergers and acquisitions.

Motorola Solutions (MSI) vs. SPDR S&P 500 ETF (SPY)

Motorola Solutions Business Overview & Revenue Model

Company DescriptionMotorola 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 MoneyMotorola 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 Key Performance Indicators (KPIs)

Any
Any
Backlog
Backlog
Represents the value of unfulfilled orders, showing future revenue visibility and overall product demand strength for Motorola Solutions.
Chart InsightsMotorola Solutions' backlog has shown fluctuations, with a recent decrease attributed to strong LMR shipments and revenue recognition. Despite this, the company reported record revenue and earnings in Q1 2025, driven by robust growth in Software and Services and Video Technologies. While the backlog decline signals potential short-term challenges, the company's strategic focus on high-growth areas and effective tariff mitigation could sustain its positive momentum. Investors should monitor international revenue pressures and backlog trends as potential risks.
Data provided by:Main Street Data

Motorola Solutions Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 0.22%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a robust start to the fiscal year with record achievements in revenue, operating earnings, and cash flow. The company shows strong growth in Software and Services and Video Technologies, with effective mitigation strategies for tariffs. However, challenges such as international revenue decline due to currency headwinds and a decrease in backlog indicate areas needing attention.
Q1-2025 Updates
Positive Updates
Record First Quarter Performance
The company achieved record first quarter revenue, record operating earnings, and record cash flow, with Q1 revenue up 6% year-over-year.
Software and Services Growth
Sales in Software and Services were up 9%, driven by strong adoption of software applications across the safety and security ecosystem and LMR services.
Product and SI Segment Performance
Sales in products and SI were up 4% with significant operating margin expansion due to growth in higher tier public safety devices and lower material costs.
Video and Software Revenue Growth
Video and Software investments continue to drive meaningful revenue growth, with Command Center and Video Technologies growing double digits.
Strong Cash Flow
Q1 operating cash flow was $510 million, up $128 million versus last year, and free cash flow was $473 million, up $137 million.
Negative Updates
International Revenue Decline
International Q1 revenue was $676 million, down 3% versus last year, due to foreign currency headwinds and lower LMR revenue from Ukraine.
Backlog Decrease
Ending backlog for Q1 was $14.1 billion, down $306 million or 2% versus last year, driven by strong LMR shipments and revenue recognition.
Tariff Challenges
Higher costs from the current tariff environment could impact up to $100 million this year, though mitigation efforts are in place.
Company Guidance
During the Motorola Solutions Q1 2025 earnings call, the company reported record first quarter revenue, operating earnings, and cash flow, with revenue growth of 6% exceeding guidance. Software and Services sales increased by 9%, driven by strong adoption of software applications, while Products and SI sales grew by 4%. Non-GAAP operating earnings rose by 12% to $716 million, with a non-GAAP operating margin of 28.3%. GAAP earnings per share were $2.53, while non-GAAP EPS stood at $3.18, reflecting a 13% increase. The company reaffirmed its full-year guidance, expecting 5.5% revenue growth and non-GAAP EPS of $14.64 to $14.74, despite an anticipated $100 million impact from tariffs. Operating cash flow was $510 million, up by $128 million from the previous year, and free cash flow reached $473 million. The company also reported $325 million in share repurchases and $182 million in cash dividends for the quarter.

Motorola Solutions Financial Statement Overview

Summary
Motorola Solutions exhibits strong financial performance with consistent revenue and profit growth, supported by robust margins. High return on equity and effective cash flow generation are positive indicators, though the balance sheet's high leverage poses a potential risk.
Income Statement
85
Very Positive
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
70
Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.82B9.98B9.11B8.17B7.41B
Gross Profit5.51B4.97B4.23B4.04B3.61B
EBITDA2.60B2.75B2.19B2.21B1.82B
Net Income1.58B1.71B1.36B1.25B949.00M
Balance Sheet
Total Assets14.60B13.34B12.81B12.19B10.88B
Cash, Cash Equivalents and Short-Term Investments2.10B1.71B1.32B1.87B1.25B
Total Debt6.55B6.55B6.55B6.01B5.58B
Total Liabilities12.88B12.60B12.68B12.21B11.42B
Stockholders Equity1.70B724.00M116.00M-40.00M-558.00M
Cash Flow
Free Cash Flow2.13B1.79B1.57B1.59B1.40B
Operating Cash Flow2.39B2.04B1.82B1.84B1.61B
Investing Cash Flow-507.00M-414.00M-1.39B-742.00M-437.00M
Financing Cash Flow-1.45B-1.29B-906.00M-429.00M-966.00M

Motorola Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price438.98
Price Trends
50DMA
418.53
Positive
100DMA
419.40
Positive
200DMA
441.83
Negative
Market Momentum
MACD
4.72
Negative
RSI
71.89
Negative
STOCH
90.43
Negative
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 438.98 is above the 20-day moving average (MA) of 422.82, above the 50-day MA of 418.53, and below the 200-day MA of 441.83, indicating a neutral trend. The MACD of 4.72 indicates Negative momentum. The RSI at 71.89 is Negative, neither overbought nor oversold. The STOCH value of 90.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MSI.

Motorola Solutions Risk Analysis

Motorola Solutions disclosed 28 risk factors in its most recent earnings report. Motorola Solutions reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Motorola Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$73.27B36.62189.18%0.97%7.45%46.78%
74
Outperform
$16.86B31.4216.16%16.72%109.89%
73
Outperform
$27.36B21.546.39%2.51%11.63%-24.41%
71
Outperform
$13.42B38.187.58%2.20%-2.56%52.05%
69
Neutral
¥233.55B14.967.55%2.59%9.31%6.17%
64
Neutral
$24.43B14.4019.63%0.37%0.98%
57
Neutral
$22.06B20.944.31%3.50%-2.39%157.33%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MSI
Motorola Solutions
438.98
32.69
8.05%
JNPR
Juniper Networks
39.95
2.66
7.13%
ERIC
Telefonaktiebolaget LM Ericsson
7.22
0.63
9.56%
NOK
Nokia
4.08
0.32
8.51%
ZBRA
Zebra Tech
339.02
16.72
5.19%
HPE
Hewlett Packard Enterprise
20.69
3.17
18.09%

Motorola Solutions Corporate Events

Private Placements and FinancingM&A Transactions
Motorola Solutions Secures $1.5B for Silvus Acquisition
Positive
Jul 21, 2025

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.

The most recent analyst rating on (MSI) stock is a Buy with a $425.00 price target. To see the full list of analyst forecasts on Motorola Solutions stock, see the MSI Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Motorola Solutions Raises $2 Billion in Senior Notes
Positive
Jun 16, 2025

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.

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.

M&A Transactions
Motorola Solutions Acquires Silvus Technologies for $4.4 Billion
Positive
May 27, 2025

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.

Executive/Board ChangesShareholder Meetings
Motorola Solutions Shareholders Approve Key Proposals
Neutral
May 19, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025