Motorola Solutions (MSI) AI Stock Analysis

• Market Cap: $73.14B
• Dividend Yield: 0.98%
• Average Volume (3M): 769.90K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.73
• 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: 690,538
• 30 Day Avg. Volume: 769,896
• 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: 1.04
• Enterprise Value/Revenue: 6.83
• Enterprise Value/Gross Profit: 13.31
• Enterprise Value/Ebitda: 22.74
• 1Y Price Target: $515.80
• Price Target Upside: 16.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: $487.00 ▲(9.69% Upside)

Motorola Solutions' strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, effective cash flow management, and raised guidance for the full year highlight its solid market position. However, the high P/E ratio and mixed technical indicators suggest caution. The company's high leverage and potential tariff impacts are risks that need careful management.

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. 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 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: Negative
• Last Price: 443.99
• 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 Negative. The current price of 443.99 is below the 20-day moving average (MA) of 450.81, below the 50-day MA of 461.99, and above the 200-day MA of 437.36, indicating a neutral trend. The MACD of -5.20 indicates Positive momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 28.08 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	―	$279.21B	27.74	22.65%	2.28%	5.30%	3.07%
ERIC	―	$31.98B	12.72	25.45%	3.12%	1.04%	―
MSI	―	$73.14B	35.33	152.71%	0.98%	6.45%	44.24%
HPE	―	$31.01B	29.68	5.37%	2.15%	14.39%	-38.96%
NOK	―	$34.27B	35.45	4.03%	2.32%	5.05%	115.92%
ZBRA	―	$15.70B	29.35	15.87%	―	19.12%	138.53%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Motorola Solutions Corporate Events

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.