Motorola Solutions, Inc. (MSI) 10-Year Financial Performance & Capital Metrics

MSI • • Industrial / General

TechnologyCommunication EquipmentSpecialized Communication EquipmentProfessional Radio Systems

AboutMotorola 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.Show more

Revenue $10.82B +8.4%
EBITDA $3.02B +14.1%
Net Income $1.58B -7.7%
EPS (Diluted) 9.23 -7.0%
Gross Margin 50.96% +2.3%
EBITDA Margin 27.96% +5.3%
Operating Margin 24.85% +8.1%
Net Margin 14.58% -14.9%
ROE 128.32% -67.3%
ROIC 34.31% +9.1%
Debt/Equity 3.81 -57.0%
Interest Coverage 9.11 -1.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 1015.1%
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 19.7% free cash flow margin
✓13 consecutive years of dividend growth
✓High quality earnings: Operating CF exceeds net income
✓Healthy 5Y average net margin of 14.9%

✗Weaknesses

✗High debt to equity ratio of 3.8x
✗Expensive at 38.8x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y6.28%

5Y6.52%

3Y9.8%

TTM6.17%

Profit (Net Income) CAGR

10Y1.96%

5Y12.68%

3Y8.2%

TTM35.47%

EPS CAGR

10Y5.72%

5Y13.32%

3Y8.78%

TTM36.47%

ROCE

10Y Avg22.06%

5Y Avg24.21%

3Y Avg26.86%

Latest31.37%

Peer Comparison

Professional Radio Systems

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
VIAVViavi Solutions Inc.	4.02B	18.03	120.20	8.39%	1.33%	2.1%	1.54%	0.89
MSIMotorola Solutions, Inc.	65.12B	391.00	42.36	8.41%	18.7%	90.27%	3.28%	3.81
BKTIBK Technologies Corporation	321.46M	86.13	38.28	3.37%	15.71%	31.66%	3.18%	0.04

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	5.7B	6.04B	6.38B	7.34B	7.89B	7.41B	8.17B	9.11B	9.98B	10.82B
Revenue Growth %	-0.03%	0.06%	0.06%	0.15%	0.07%	-0.06%	0.1%	0.12%	0.1%	0.08%
Cost of Goods Sold+	2.98B	3.17B	3.36B	3.86B	3.96B	3.81B	4.13B	4.88B	5.01B	5.3B
COGS % of Revenue	0.52%	0.52%	0.53%	0.53%	0.5%	0.51%	0.51%	0.54%	0.5%	0.49%
Gross Profit+	2.72B	2.87B	3.02B	3.48B	3.93B	3.61B	4.04B	4.23B	4.97B	5.51B
Gross Margin %	0.48%	0.48%	0.47%	0.47%	0.5%	0.49%	0.49%	0.46%	0.5%	0.51%
Gross Profit Growth %	-0.04%	0.06%	0.05%	0.15%	0.13%	-0.08%	0.12%	0.05%	0.18%	0.11%
Operating Expenses+	1.73B	1.82B	1.74B	2.23B	2.35B	2.23B	2.37B	2.57B	2.68B	2.82B
OpEx % of Revenue	0.3%	0.3%	0.27%	0.3%	0.3%	0.3%	0.29%	0.28%	0.27%	0.26%
Selling, General & Admin	1.02B	1.04B	1.02B	1.25B	1.4B	1.29B	1.35B	1.45B	1.56B	1.75B
SG&A % of Revenue	0.18%	0.17%	0.16%	0.17%	0.18%	0.17%	0.17%	0.16%	0.16%	0.16%
Research & Development	620M	553M	568M	637M	687M	686M	734M	779M	858M	917M
R&D % of Revenue	0.11%	0.09%	0.09%	0.09%	0.09%	0.09%	0.09%	0.09%	0.09%	0.08%
Other Operating Expenses	84M	224M	147M	334M	260M	246M	286M	339M	257M	155M
Operating Income+	994M	1.05B	1.28B	1.25B	1.58B	1.38B	1.67B	1.66B	2.29B	2.69B
Operating Margin %	0.17%	0.17%	0.2%	0.17%	0.2%	0.19%	0.2%	0.18%	0.23%	0.25%
Operating Income Growth %	1.99%	0.05%	0.23%	-0.02%	0.26%	-0.13%	0.21%	-0%	0.38%	0.17%
EBITDA+	1.14B	1.34B	1.63B	1.61B	1.98B	1.79B	2.1B	2.1B	2.65B	3.02B
EBITDA Margin %	0.2%	0.22%	0.26%	0.22%	0.25%	0.24%	0.26%	0.23%	0.27%	0.28%
EBITDA Growth %	2.37%	0.17%	0.21%	-0.01%	0.22%	-0.09%	0.17%	-0%	0.26%	0.14%
D&A (Non-Cash Add-back)	150M	295M	343M	360M	394M	409M	438M	440M	356M	336M
EBIT	1.1B	1.07B	1.29B	1.34B	1.24B	1.41B	1.77B	1.75B	2.4B	2.27B
Net Interest Income+	-173M	-205M	-201M	-222M	-220M	-220M	-208M	-226M	-216M	-227M
Interest Income	13M	20M	14M	18M	17M	13M	7M	14M	33M	68M
Interest Expense	186M	225M	215M	240M	237M	233M	215M	240M	249M	295M
Other Income/Expense	-77M	-204M	-208M	-153M	-580M	-209M	-115M	-146M	-148M	-716M
Pretax Income+	917M	844M	1.08B	1.1B	1B	1.17B	1.55B	1.51B	2.15B	1.97B
Pretax Margin %	0.16%	0.14%	0.17%	0.15%	0.13%	0.16%	0.19%	0.17%	0.22%	0.18%
Income Tax+	274M	282M	1.23B	133M	130M	221M	302M	148M	432M	390M
Effective Tax Rate %	0.67%	0.66%	-0.14%	0.88%	0.87%	0.81%	0.8%	0.9%	0.8%	0.8%
Net Income+	610M	560M	-155M	966M	868M	949M	1.25B	1.36B	1.71B	1.58B
Net Margin %	0.11%	0.09%	-0.02%	0.13%	0.11%	0.13%	0.15%	0.15%	0.17%	0.15%
Net Income Growth %	-0.53%	-0.08%	-1.28%	7.23%	-0.1%	0.09%	0.31%	0.09%	0.25%	-0.08%
Net Income (Continuing)	643M	562M	-151M	969M	871M	953M	1.25B	1.37B	1.71B	1.58B
Discontinued Operations	-30M	0	0	0	0	0	0	0	0	0
Minority Interest	10M	12M	15M	17M	17M	17M	17M	15M	15M	16M
EPS (Diluted)+	3.02	3.24	-0.95	5.62	4.94	5.45	7.17	7.93	9.93	9.23
EPS Growth %	-0.43%	0.07%	-1.29%	6.92%	-0.12%	0.1%	0.32%	0.11%	0.25%	-0.07%
EPS (Basic)	3.06	3.30	-0.95	5.62	5.21	5.58	7.36	8.14	10.23	9.45
Diluted Shares Outstanding	201.8M	173.1M	162.9M	172M	175.6M	174.1M	173.6M	171.9M	172.1M	170.8M
Basic Shares Outstanding	199.6M	169.6M	162.9M	171.89M	166.6M	170M	169.2M	167.5M	167M	166.8M
Dividend Payout Ratio	0.45%	0.5%	-	0.35%	0.44%	0.46%	0.39%	0.39%	0.34%	0.41%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	4.58B	3.43B	3.95B	4.27B	4.18B	4.33B	5.41B	5.25B	5.72B	6.48B
Cash & Short-Term Investments	1.98B	1.03B	1.21B	1.25B	1B	1.25B	1.87B	1.32B	1.71B	2.1B
Cash Only	1.98B	1.03B	1.21B	1.25B	1B	1.25B	1.87B	1.32B	1.71B	2.1B
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	1.74B	1.89B	2.07B	2.31B	2.46B	2.32B	2.49B	2.49B	2.81B	3.18B
Days Sales Outstanding	111.26	114.01	118.54	114.58	113.75	114.36	111.27	99.82	102.86	107.37
Inventory	296M	273M	327M	356M	447M	508M	788M	1.05B	827M	766M
Days Inventory Outstanding	36.3	31.44	35.56	33.64	41.24	48.72	69.62	78.86	60.27	52.7
Other Current Assets	169M	296M	346M	354M	272M	242M	259M	383M	381M	429M
Total Non-Current Assets+	3.81B	5B	4.26B	5.14B	6.46B	6.55B	6.78B	7.56B	7.61B	8.12B
Property, Plant & Equipment	487M	789M	856M	895M	1.55B	1.49B	1.42B	1.41B	1.46B	1.55B
Fixed Asset Turnover	11.69x	7.65x	7.45x	8.20x	5.10x	4.98x	5.74x	6.45x	6.84x	6.97x
Goodwill	420M	728M	938M	1.51B	2.07B	2.22B	2.56B	3.31B	3.4B	3.53B
Intangible Assets	49M	821M	861M	1.23B	1.33B	1.23B	1.1B	1.34B	1.25B	1.25B
Long-Term Investments	268M	238M	247M	169M	159M	158M	209M	147M	143M	135M
Other Non-Current Assets	352M	1.02B	333M	344M	422M	482M	558M	310M	291M	375M
Total Assets+	8.39B	8.43B	8.21B	9.41B	10.64B	10.88B	12.19B	12.81B	13.34B	14.6B
Asset Turnover	0.68x	0.72x	0.78x	0.78x	0.74x	0.68x	0.67x	0.71x	0.75x	0.74x
Asset Growth %	-0.2%	0%	-0.03%	0.15%	0.13%	0.02%	0.12%	0.05%	0.04%	0.09%
Total Current Liabilities+	2.19B	2.63B	2.93B	3.1B	3.44B	3.49B	4.06B	4.56B	5.74B	5.05B
Accounts Payable	518M	553M	593M	592M	779M	612M	851M	1.21B	881M	1.18B
Days Payables Outstanding	63.53	63.69	64.49	55.94	71.87	58.69	75.19	90.22	64.21	81.05
Short-Term Debt	4M	4M	52M	31M	16M	12M	5M	1M	1.31B	322M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	846M	1.06B	821M	701M	347M	747M	890M	779M	439M	503M
Current Ratio	2.09x	1.30x	1.35x	1.38x	1.21x	1.24x	1.33x	1.15x	1.00x	1.28x
Quick Ratio	1.95x	1.20x	1.24x	1.26x	1.08x	1.09x	1.14x	0.92x	0.85x	1.13x
Cash Conversion Cycle	84.03	81.76	89.61	92.28	83.12	104.39	105.71	88.46	98.93	79.02
Total Non-Current Liabilities+	6.29B	6.75B	7B	7.59B	7.89B	7.93B	8.15B	8.12B	6.86B	7.82B
Long-Term Debt	4.34B	4.39B	4.42B	5.29B	5.11B	5.16B	5.69B	6.01B	4.71B	5.67B
Capital Lease Obligations	0	0	0	0	497M	402M	313M	419M	407M	427M
Deferred Tax Liabilities	-113M	121M	115M	201M	184M	180M	183M	73M	55M	87M
Other Non-Current Liabilities	1.78B	2.12B	2.3B	1.89B	1.82B	1.9B	1.66B	1.25B	1.27B	1.14B
Total Liabilities	8.48B	9.38B	9.94B	10.69B	11.32B	11.42B	12.21B	12.68B	12.6B	12.88B
Total Debt+	4.39B	4.4B	4.47B	5.32B	5.75B	5.7B	6.13B	6.55B	6.55B	6.55B
Net Debt	2.41B	3.37B	3.27B	4.06B	4.75B	4.45B	4.26B	5.23B	4.84B	4.45B
Debt / Equity	-	-	-	-	-	-	-	50.01x	8.86x	3.81x
Debt / EBITDA	3.84x	3.27x	2.75x	3.29x	2.91x	3.18x	2.91x	3.12x	2.47x	2.17x
Net Debt / EBITDA	2.11x	2.51x	2.01x	2.52x	2.40x	2.48x	2.02x	2.49x	1.83x	1.47x
Interest Coverage	5.34x	4.66x	5.97x	5.23x	6.67x	5.94x	7.75x	6.92x	9.21x	9.11x
Total Equity+	-96M	-952M	-1.73B	-1.28B	-683M	-541M	-23M	131M	739M	1.72B
Equity Growth %	-1.03%	-8.92%	-0.81%	0.26%	0.46%	0.21%	0.96%	6.7%	4.64%	1.33%
Book Value per Share	-0.48	-5.50	-10.60	-7.42	-3.89	-3.11	-0.13	0.76	4.29	10.06
Total Shareholders' Equity	-106M	-964M	-1.74B	-1.29B	-700M	-558M	-40M	116M	724M	1.7B
Common Stock	2M	2M	2M	2M	2M	2M	2M	2M	2M	2M
Retained Earnings	1.72B	1.15B	467M	1.05B	1.24B	1.13B	1.35B	1.34B	1.64B	2.3B
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-1.87B	-2.32B	-2.56B	-2.77B	-2.44B	-2.45B	-2.38B	-2.54B	-2.54B	-2.54B
Minority Interest	10M	12M	15M	17M	17M	17M	17M	15M	15M	16M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	1B	1.17B	1.35B	1.07B	1.82B	1.61B	1.84B	1.82B	2.04B	2.39B
Operating CF Margin %	0.18%	0.19%	0.21%	0.15%	0.23%	0.22%	0.22%	0.2%	0.2%	0.22%
Operating CF Growth %	2.7%	0.16%	0.16%	-0.2%	0.7%	-0.12%	0.14%	-0.01%	0.12%	0.17%
Net Income	643M	562M	-151M	969M	871M	953M	1.25B	1.37B	1.71B	1.58B
Depreciation & Amortization	150M	295M	343M	360M	394M	409M	438M	440M	356M	336M
Stock-Based Compensation	78M	68M	66M	73M	118M	129M	129M	172M	212M	243M
Deferred Taxes	160M	213M	1.1B	9M	-84M	-25M	34M	-334M	-32M	-215M
Other Non-Cash Items	-87M	88M	77M	34M	435M	45M	20M	507M	43M	601M
Working Capital Changes	61M	-61M	-89M	-370M	89M	102M	-34M	-329M	-244M	-156M
Change in Receivables	21M	32M	-60M	62M	-79M	90M	3M	-112M	-180M	-246M
Change in Inventory	16M	6M	-46M	71M	-74M	-14M	-284M	-242M	200M	62M
Change in Payables	10M	203M	160M	271M	198M	-116M	578M	451M	-144M	302M
Cash from Investing+	-528M	-1B	-448M	-1.27B	-934M	-437M	-742M	-1.39B	-414M	-507M
Capital Expenditures	-175M	-271M	-227M	-197M	-248M	-217M	-243M	-256M	-253M	-257M
CapEx % of Revenue	0.03%	0.04%	0.04%	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-172M	-198M	-227M	-197M	-241M	-161M	-237M	-1.17B	0	0
Cash from Financing+	-2.38B	-1.04B	-722M	220M	-1.14B	-966M	-429M	-906M	-1.29B	-1.45B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-277M	-280M	-307M	-337M	-379M	-436M	-482M	-530M	-589M	-654M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	5M	0	-3M	-77M	111M	104M	90M	150M	-5M	-4M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	830M	894M	1.12B	878M	1.57B	1.4B	1.59B	1.57B	1.79B	2.13B
FCF Margin %	0.15%	0.15%	0.18%	0.12%	0.2%	0.19%	0.2%	0.17%	0.18%	0.2%
FCF Growth %	2.08%	0.08%	0.25%	-0.22%	0.79%	-0.11%	0.14%	-0.02%	0.14%	0.19%
FCF per Share	4.11	5.16	6.87	5.10	8.97	8.02	9.18	9.12	10.41	12.49
FCF Conversion (FCF/Net Income)	1.65x	2.08x	-8.68x	1.11x	2.10x	1.70x	1.48x	1.34x	1.20x	1.52x
Interest Paid	163M	191M	176M	204M	221M	217M	207M	226M	234M	253M
Taxes Paid	105M	66M	122M	119M	138M	181M	257M	307M	587M	627M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	45.69%	-	-	-	-	-	-	2524.07%	392.87%	128.32%
Return on Invested Capital (ROIC)	32.94%	33.25%	48.72%	43.41%	34.56%	26.02%	30.71%	25.98%	31.45%	34.31%
Gross Margin	47.74%	47.52%	47.4%	47.39%	49.84%	48.66%	49.44%	46.41%	49.81%	50.96%
Net Margin	10.71%	9.27%	-2.43%	13.16%	11.01%	12.8%	15.24%	14.96%	17.13%	14.58%
Debt / Equity	-	-	-	-	-	-	-	50.01x	8.86x	3.81x
Interest Coverage	5.34x	4.66x	5.97x	5.23x	6.67x	5.94x	7.75x	6.92x	9.21x	9.11x
FCF Conversion	1.65x	2.08x	-8.68x	1.11x	2.10x	1.70x	1.48x	1.34x	1.20x	1.52x
Revenue Growth	-3.16%	6.02%	5.66%	15.09%	7.41%	-6%	10.21%	11.52%	9.5%	8.41%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Product	3.68B	3.65B	3.77B	4.46B	4.75B	4.09B	4.61B	5.37B	5.81B	6.45B
Product Growth	-	-0.73%	3.37%	18.32%	6.34%	-13.89%	12.70%	16.54%	8.31%	11.01%
Service	2.02B	2.39B	2.61B	2.88B	3.14B	3.33B	3.56B	3.74B	4.16B	4.36B
Service Growth	-	18.33%	9.17%	10.43%	9.06%	5.92%	7.15%	5.02%	11.22%	4.78%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
North America	-	-	3.73B	4.66B	5.28B	5.02B	5.56B	6.37B	6.93B	7.82B
North America Growth	-	-	-	25.21%	13.12%	-4.78%	10.67%	14.64%	8.75%	12.81%
International	-	-	2.65B	2.68B	2.61B	2.39B	2.61B	2.74B	3.05B	3B
International Growth	-	-	-	0.90%	-2.54%	-8.46%	9.25%	4.86%	11.25%	-1.61%

Frequently Asked Questions

Valuation & Price

Motorola Solutions, Inc. (MSI) has a price-to-earnings (P/E) ratio of 42.4x. This suggests investors expect higher future growth.

Growth & Financials

Motorola Solutions, Inc. (MSI) reported $11.31B in revenue for fiscal year 2024. This represents a 38% increase from $8.20B in 2011.

Motorola Solutions, Inc. (MSI) grew revenue by 8.4% over the past year. This is steady growth.

Yes, Motorola Solutions, Inc. (MSI) is profitable, generating $2.12B in net income for fiscal year 2024 (14.6% net margin).

Dividend & Returns

Yes, Motorola Solutions, Inc. (MSI) pays a dividend with a yield of 0.98%. This makes it attractive for income-focused investors.

Motorola Solutions, Inc. (MSI) has a return on equity (ROE) of 128.3%. This is excellent, indicating efficient use of shareholder capital.

Motorola Solutions, Inc. (MSI) generated $2.41B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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