Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $70.39B
• Dividend Yield: 0.97%
• Average Volume (3M): 915.51K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.79
• Revenue Growth: 7.45%
• EPS Growth: 46.78%
• Country: US
• Employees: 21,000
• Sector: Technology
• Sector Strength: 77
• Industry: Communication Equipment
• EPS (TTM): 3.18
• Shares Outstanding: 166,915,800
• 10 Day Avg. Volume: 979,696
• 30 Day Avg. Volume: 915,512
• PEG Ratio: 1.11
• Price to Book (P/B): 41.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.88
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 13.04
• Enterprise Value/Ebitda: 6.73
• 1Y Price Target: $507.43
• Price Target Upside: 21.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $469.00 ▲( 11.95% Upside)

Motorola Solutions scores well due to strong financial performance and positive earnings call results, showcasing growth in key segments. However, high valuation and mixed technical signals temper the overall outlook.

Positive Factors

Market Expansion

Motorola has a presence in the Middle East and should benefit from the region’s $1.5 trillion infrastructure boom and strong U.S. geopolitical ties.

Product Innovation

SVX and Assist AI offerings provide a more holistic record of incidents by consolidating voice and video onto one device, enhancing evidence reporting for police.

Negative Factors

Competitive Challenges

There is an uphill battle in gaining market share in body cameras from AXON, which remains a strong competitor with compelling AI features.

Revenue Growth Concerns

Shares are under pressure because the guidance implies that the revenue growth cadence will be back-end loaded.

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 health with consistent revenue and profit growth, robust margins, and efficient cash flow generation. The high return on equity is a positive indicator, but the company's high leverage poses potential risks if market conditions shift unfavorably.

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: 418.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 418.92 is below the 20-day moving average (MA) of 420.46, below the 50-day MA of 422.18, and below the 200-day MA of 446.37, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.19 is Neutral, 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	74 Outperform	$70.39B	35.18	189.18%	0.97%	7.45%	46.78%
ZBRA	74 Outperform	$14.66B	27.26	16.16%	―	16.72%	109.89%
HPE	70 Outperform	$23.05B	8.68	12.09%	2.96%	10.93%	43.19%
ERIC	68 Neutral	$29.03B	184.65	1.67%	2.06%	-2.08%	―
JNPR	64 Neutral	$12.03B	34.40	7.58%	2.45%	-2.56%	52.05%
NOK	64 Neutral	$28.04B	35.73	5.70%	1.88%	-9.96%	-6.83%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

Motorola Solutions Corporate Events

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.