Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $62.36B
• Dividend Yield: 1.16%
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 0.64
• Revenue Growth: 6.17%
• EPS Growth: 35.41%
• Country: US
• Employees: 21,000
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 4.06
• Shares Outstanding: 166,555,000
• 10 Day Avg. Volume: 1,570,807
• 30 Day Avg. Volume: 1,507,589
• PEG Ratio: -6.41
• Price to Book (P/B): 45.27
• Price to Sales (P/S): 7.13
• P/FCF Ratio: 36.13
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 7.62
• Enterprise Value/Gross Profit: 14.96
• Enterprise Value/Ebitda: 25.08
• 1Y Price Target: $493.88
• Price Target Upside: 31.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 15.16
• Revenue Forecast (FY): $11.65B

• Rating: 70 Outperform
• Price Target: $412.00 ▲(10.05% Upside)

Motorola Solutions' strong financial performance and positive earnings call outlook are major strengths, contributing significantly to the overall score. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Sustained revenue growth, particularly in software and services, indicates strong market demand and enhances long-term business stability.

Record Backlog

A record backlog suggests robust future revenue streams, providing visibility and stability for long-term financial planning.

Successful Acquisition Integration

Successful integration of acquisitions like Silvus enhances product offerings and market reach, supporting future growth and innovation.

Negative Factors

High Debt Levels

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and manage economic downturns.

Tariff Challenges

Tariff-related cost pressures can squeeze margins, requiring strategic adjustments to maintain profitability and competitiveness.

Interest Expense Increase

Increased interest expenses from debt can limit net income growth, affecting cash flow and financial flexibility over time.

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 hardware sales, software solutions, and services. Key revenue streams consist of selling radios and communication devices, which form a significant portion of its income. Additionally, the company offers software solutions for dispatch, incident management, and analytics, contributing to recurring revenue through subscriptions and long-term contracts. Its services, including maintenance and support, also provide a steady revenue base. Collaborations with public safety organizations and government contracts enhance its earnings, as these partnerships often result in large-scale deployments of its technology. The focus on innovation and expanding its product offerings, such as cloud-based solutions and integrated security systems, further supports its financial growth.

Motorola Solutions Financial Statement Overview

Summary

Motorola Solutions demonstrates strong financial health with solid revenue growth and profitability. The company effectively manages its operations to maintain high margins and cash flow generation. However, the high debt levels present a risk that needs careful management to ensure long-term stability. Despite this, the company's strong return on equity and cash flow metrics indicate a well-managed financial position.

Income Statement

Motorola Solutions shows strong financial performance with consistent revenue growth and improving profit margins. The TTM data indicates a gross profit margin of 51.4% and a net profit margin of 18.7%, both of which are healthy for the industry. The revenue growth rate of 1.97% in the TTM period suggests steady growth. The EBIT and EBITDA margins are also robust at 19.7% and 28.7% respectively, indicating efficient operations and strong profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.21, which is a potential risk factor, indicating significant leverage. However, the return on equity is strong at 110.8%, reflecting effective use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis shows positive trends with a free cash flow growth rate of 25.8% in the TTM period. The operating cash flow to net income ratio is 0.47, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 91.1%, suggesting that the company is effectively converting its earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.31B	10.82B	9.98B	9.11B	8.17B	7.41B
Gross Profit	5.76B	5.51B	4.97B	4.23B	4.04B	3.61B
EBITDA	3.44B	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	18.80B	14.60B	13.34B	12.81B	12.19B	10.88B
Cash, Cash Equivalents and Short-Term Investments	894.00M	2.10B	1.71B	1.32B	1.87B	1.25B
Total Debt	9.94B	6.55B	6.55B	6.55B	6.13B	5.70B
Total Liabilities	16.45B	12.88B	12.60B	12.68B	12.21B	11.42B
Stockholders Equity	2.33B	1.70B	724.00M	116.00M	-40.00M	-558.00M
Cash Flow
Free Cash Flow	2.41B	2.13B	1.79B	1.57B	1.59B	1.40B
Operating Cash Flow	2.65B	2.39B	2.04B	1.82B	1.84B	1.61B
Investing Cash Flow	-5.08B	-507.00M	-414.00M	-1.39B	-742.00M	-437.00M
Financing Cash Flow	1.90B	-1.45B	-1.29B	-906.00M	-429.00M	-966.00M

Motorola Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 374.39
• 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 374.39 is below the 20-day moving average (MA) of 376.96, below the 50-day MA of 414.93, and below the 200-day MA of 426.91, indicating a bearish trend. The MACD of -11.86 indicates Negative momentum. The RSI at 34.25 is Neutral, neither overbought nor oversold. The STOCH value of 60.23 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
CSCO	77 Outperform	$308.07B	29.40	23.01%	2.09%	8.91%	14.53%
ERIC	74 Outperform	$31.99B	12.79	25.45%	2.56%	1.04%	―
ZBRA	72 Outperform	$13.42B	26.70	14.29%	―	13.35%	34.73%
HPE	72 Outperform	$30.78B	―	0.23%	2.27%	14.00%	-102.25%
MSI	70 Outperform	$62.36B	30.04	115.80%	1.16%	6.17%	35.41%
NOK	66 Neutral	$33.97B	34.16	4.03%	2.43%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Motorola Solutions Corporate Events

Motorola Solutions Expands Board with New Appointment

On November 18, 2025, Motorola Solutions announced the expansion of its Board of Directors from seven to eight members, appointing Dr. Mark E. Lashier as a new director and member of the Governance and Nominating Committee. Dr. Lashier, currently the Chairman and CEO of Phillips 66, brings over 30 years of experience in the energy and petrochemical industries to the board. His appointment is expected to enhance Motorola Solutions’ leadership as it continues to innovate and invest in safety and security solutions globally.