Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $63.29B
• Dividend Yield: 1.15%
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.65
• 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: 1,590,761
• 30 Day Avg. Volume: 1,044,320
• 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: 1.36
• Enterprise Value/Revenue: 7.62
• Enterprise Value/Gross Profit: 14.96
• Enterprise Value/Ebitda: 25.08
• 1Y Price Target: $500.14
• Price Target Upside: 31.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 15.16
• Revenue Forecast (FY): $11.65B

• Rating: 71 Outperform
• Price Target: $449.00 ▲(18.16% Upside)

Motorola Solutions' strong financial performance and positive earnings call outlook are significant strengths, contributing to a high overall score. However, technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued, 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. (MSI) is a global leader in mission-critical communications and analytics, providing technology and services to public safety and industrial sectors. The company specializes in advanced communication devices, software solutions, and services that enhance situational awareness, operational efficiency, and safety for its customers. Its core products include two-way radios, body-worn cameras, command center software, and cloud-based communication systems, enabling seamless and secure communication for first responders and enterprises alike.

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 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: 379.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 379.98 is below the 20-day moving average (MA) of 414.18, below the 50-day MA of 443.70, and below the 200-day MA of 433.04, indicating a bearish trend. The MACD of -17.89 indicates Positive momentum. The RSI at 20.82 is Positive, neither overbought nor oversold. The STOCH value of 11.35 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
CSCO	77 Outperform	$308.35B	29.37	23.01%	2.11%	8.91%	14.53%
ERIC	74 Outperform	$33.04B	13.08	25.45%	3.02%	1.04%	―
NOK	74 Outperform	$38.48B	37.87	4.03%	2.33%	5.05%	115.92%
HPE	72 Outperform	$30.12B	28.83	5.37%	2.28%	14.39%	-38.96%
MSI	71 Outperform	$63.29B	30.49	115.80%	1.15%	6.17%	35.41%
ZBRA	68 Neutral	$12.19B	24.25	14.29%	―	13.35%	34.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Motorola Solutions Corporate Events

Motorola Solutions Reports Strong Q3 Earnings and Outlook

The recent earnings call for Motorola Solutions painted a positive picture, showcasing robust revenue growth, a record backlog, and the successful integration of Silvus. Despite facing challenges such as tariffs and potential impacts from a government shutdown, the company remains optimistic about its future prospects.

Motorola Solutions Reports Strong Q3 2025 Results

Motorola Solutions, Inc. is a leading provider of communication equipment, software, and services, primarily serving the public safety and commercial sectors with a focus on safety and security solutions.

Motorola Solutions Reports Record Q2 Earnings and Growth

Motorola Solutions’ recent earnings call painted a picture of robust performance and strategic growth. The company reported record-breaking revenue, earnings, and orders, underscoring a strong quarter. Despite challenges such as tariff impacts and increased interest expenses, the overall sentiment was positive, buoyed by strong demand and successful strategic acquisitions.

Motorola Solutions Reports Strong Q2 2025 Results

Motorola Solutions, a leader in communications and security technology, operates in the public safety and enterprise security sectors, providing solutions that enhance safety and operational efficiency.

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.

The most recent analyst rating on (MSI) stock is a Buy with a $515.00 price target. To see the full list of analyst forecasts on Motorola Solutions stock, see the MSI Stock Forecast page.