Motorola Solutions, Inc. (MSI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Motorola Solutions, Inc.

Why is Motorola Solutions, Inc. ?

High Management Efficiency with a high ROCE of 41.95%

Healthy long term growth as Net Sales has grown by an annual rate of 7.73%

With ROCE of 44.78%, it has a fair valuation with a 12.07 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.02%, its profits have risen by 0.8% ; the PEG ratio of the company is 33.9

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Motorola Solutions, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Motorola Solutions, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Motorola Solutions, Inc.

-2.36%

-0.07

22.84%

S&P 500

25.41%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.52%

EBIT Growth (5y)

15.61%

EBIT to Interest (avg)

8.40

Debt to EBITDA (avg)

1.88

Net Debt to Equity (avg)

2.77

Sales to Capital Employed (avg)

1.32

Tax Ratio

21.39%

Dividend Payout Ratio

35.15%

Pledged Shares

Institutional Holding

89.38%

ROCE (avg)

41.95%

ROE (avg)

403.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

30.29

EV to EBIT

27.23

EV to EBITDA

23.47

EV to Capital Employed

7.70

EV to Sales

6.95

PEG Ratio

Dividend Yield

105.24%

ROCE (Latest)

28.27%

ROE (Latest)

87.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,778 MM

DIVIDEND PER SHARE(HY)

Highest at USD 3.58

DIVIDEND PAYOUT RATIO(Y)

Highest at 55.54%

-15What is not working for the Company

INTEREST(HY)

At USD 233 MM has Grown at 62.94%

ROCE(HY)

Lowest at 99.88%

INTEREST COVERAGE RATIO(Q)

Lowest at 677.48

RAW MATERIAL COST(Y)

Grown by 6.47% (YoY

CASH AND EQV(HY)

Lowest at USD 2,051 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 27.71 %

PRE-TAX PROFIT(Q)

Lowest at USD 543 MM

EPS(Q)

Lowest at USD 2.18

Here's what is working for Motorola Solutions, Inc.

Operating Cash Flow

Highest at USD 2,778 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 3.58 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 55.54%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 157 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Motorola Solutions, Inc.

Interest

At USD 233 MM has Grown at 62.94%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest Coverage Ratio

Lowest at 677.48

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 27.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 543 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD 2.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Cash and Eqv

Lowest at USD 2,051 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 6.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.13 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income