Motorola Solutions, Inc. (MSI)
Valuation Overview•Is Motorola Solutions, Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 71/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
MSI exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins (highlighted by a massive 25.6% ROIC). This is paired with a moderately leveraged but stable balance sheet.
The company demonstrates solid revenue growth (8.6% 3Y CAGR) paired with robust earnings compounding (17.2% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 24.8% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $2.7B | +8.0% | +8.6% | +9.5% | +7.4% | |
| EBITDA | $752.0M | — | +17.2% | — | — | |
| Net Income | $366.0M | +36.6% | +16.5% | — | +13.4% | |
| EPS (Diluted) | $2.18 | +38.2% | +17.2% | +18.5% | +15.5% | |
| Free Cash Flow | $389.0M | +20.5% | +18.0% | +13.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 49.3% | 50.3% | 49.4% | 48.8% |
| Operating Margin | 24.8% | 24.3% | 22.3% | 20.5% |
| Net Margin | 17.6% | 16.7% | 16.1% | 12.4% |
| FCF Margin | 21.0% | 19.9% | 19.3% | 18.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $3.24 | $3.37 | +4.0% | ||
| Q1'26 | $4.35 | $4.59 | +5.5% | ||
| Q4'25 | $3.85 | $4.06 | +5.5% | ||
| Q3'25 | $3.35 | $3.57 | +6.6% | ||
| Q2'25 | $3.01 | $3.18 | +5.6% | ||
| Q1'25 | $3.89 | $4.04 | +3.9% | ||
| Q4'24 | $3.38 | $3.74 | +10.7% | ||
| Q3'24 | $3.01 | $3.24 | +7.6% |
Total return is -1.2% (1Y), lagging the benchmark by -26.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +4.3% | -5.0% | — |
| 1Y | -1.2% | -26.2% | +1.2% |
| 3YCAGR | +13.5% | -5.5% | +4.6% |
| 5YCAGR | +14.9% | +2.3% | +9.3% |
| 10YCAGR | +20.1% | +6.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Motorola Solutions, Inc. (MSI) valuation, health, and returns.
Motorola Solutions, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $404.71)
Motorola Solutions, Inc. has multiple valuation anchors: DCF Intrinsic Value: $404.71 | Peer Relative Fair Value: $725.15 | Wall Street Analyst Target: $506.00 (implying +28.0% upside). A convergence of these signals offers higher conviction.
Motorola Solutions, Inc. displays good financial health with a composite quality score of 71/100, supported by a Altman Z-Score of 3.0 (grey zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 25.6%.
Motorola Solutions, Inc. pays a 1.1% dividend yield, covered by a 34% payout ratio with 14 years of growth, supplemented by a 1.8% buyback yield.
Motorola Solutions, Inc.'s current growth trajectory is Stable. The company achieved +8.0% 1Y revenue growth and +38.2% 1Y EPS growth, compared to its 3Y revenue CAGR of +8.6%.
Wall Street consensus is Buy based on 34 analysts, beating EPS expectations in 100% of recent quarters with a 40-quarter streak. The consensus price target represents a +28.0% change from current levels.
Investment risks for Motorola Solutions, Inc. include: -25.8% 1-year max drawdown. Volatility risk is characterized by a beta of 0.22x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.