Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $76.16B
• Dividend Yield: 0.95%
• Average Volume (3M): 859.33K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.77
• Revenue Growth: 6.45%
• EPS Growth: 44.24%
• Country: US
• Employees: 21,000
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 3.57
• Shares Outstanding: 166,603,900
• 10 Day Avg. Volume: 765,110
• 30 Day Avg. Volume: 859,334
• 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: 1.00
• Enterprise Value/Revenue: 6.83
• Enterprise Value/Gross Profit: 13.31
• Enterprise Value/Ebitda: 22.74
• 1Y Price Target: $512.33
• Price Target Upside: 12.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 76 Outperform
• Price Target: $517.00 ▲(13.10% Upside)

Motorola Solutions' strong financial performance and positive earnings call are the primary drivers of its high stock score. The company's robust revenue growth, efficient cash flow management, and raised guidance reflect a positive outlook. While technical analysis shows some short-term weakness, the overall fundamentals and strategic initiatives support a favorable long-term view.

Positive Factors

Revenue Growth

The strong revenue growth, particularly in software and services, highlights Motorola Solutions' ability to expand its market presence and enhance its recurring revenue streams, supporting long-term business stability.

Cash Flow Management

Effective cash flow management ensures Motorola Solutions can fund operations, invest in growth opportunities, and manage its debt, contributing to financial resilience.

Intellectual Property Protection

The court ruling strengthens Motorola Solutions' intellectual property position, ensuring ongoing revenue from royalties and deterring future infringements, which supports long-term competitive advantage.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Motorola Solutions' ability to invest in growth and withstand economic downturns.

Tariff and Interest Expense Headwinds

Tariff and interest expenses can erode profitability and cash flow, posing challenges to cost management and potentially affecting Motorola Solutions' competitive pricing strategies.

Product Segment Challenges

Flat sales in the product segment indicate potential market saturation or competitive pressures, which could hinder Motorola Solutions' growth prospects in this area.

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 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: 457.13
• 50DMA: Negative
• 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 457.13 is below the 20-day moving average (MA) of 466.64, below the 50-day MA of 461.69, and above the 200-day MA of 438.18, indicating a neutral trend. The MACD of -2.93 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.18 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
HPE	77 Outperform	$32.71B	30.85	5.37%	2.09%	14.39%	-38.96%
MSI	76 Outperform	$76.16B	36.45	152.71%	0.95%	6.45%	44.24%
CSCO	76 Outperform	$272.41B	26.67	22.65%	2.36%	5.30%	3.07%
ZBRA	70 Outperform	$15.35B	28.53	15.87%	―	19.12%	138.53%
ERIC	69 Neutral	$28.25B	16.80	19.63%	3.45%	0.98%	―
NOK	62 Neutral	$26.21B	25.15	4.31%	3.05%	-2.39%	157.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.