Motorola Solutions, Inc.

MSI

Radio & Tv Broadcasting & Communications Equipment

Mkt Cap

$59.85B

PE

43.00

Debt

$6.621B

Cash

$1.512B

EV

$64.96B

FCF

$2.189B

Market Cap

$59.85B

P/E Ratio

43.00

Debt

$6.621B

Cash

$1.512B

EV

$64.96B

FCF

$2.189B

Charts data: {"Earnings":[{"time":"2014-12-30","value":1299000000},{"time":"2015-12-30","value":610000000},{"time":"2016-12-30","value":560000000},{"time":"2017-12-30","value":-155000000},{"time":"2018-12-30","value":966000000},{"time":"2019-12-30","value":868000000},{"time":"2020-12-30","value":949000000},{"time":"2021-12-30","value":1245000000},{"time":"2022-12-30","value":1363000000},{"time":"2023-12-30","value":1709000000}],"Sales":[{"time":"2014-12-30","value":5881000000},{"time":"2015-12-30","value":5695000000},{"time":"2016-12-30","value":6038000000},{"time":"2017-12-30","value":6380000000},{"time":"2018-12-30","value":7343000000},{"time":"2019-12-30","value":7887000000},{"time":"2020-12-30","value":7414000000},{"time":"2021-12-30","value":8171000000},{"time":"2022-12-30","value":9112000000},{"time":"2023-12-30","value":9978000000}],"Net Margins":[{"time":"2014-12-30","value":0.22088080258459444},{"time":"2015-12-30","value":0.10711150131694469},{"time":"2016-12-30","value":0.09274594236502152},{"time":"2017-12-30","value":-0.024294670846394983},{"time":"2018-12-30","value":0.1315538608198284},{"time":"2019-12-30","value":0.1100545200963611},{"time":"2020-12-30","value":0.1280010790396547},{"time":"2021-12-30","value":0.1523681311956921},{"time":"2022-12-30","value":0.14958296751536435},{"time":"2023-12-30","value":0.17127680897975547}],"Assets":[{"time":"2014-12-30","value":10423000000},{"time":"2015-12-30","value":8387000000},{"time":"2016-12-30","value":8463000000},{"time":"2017-12-30","value":8208000000},{"time":"2018-12-30","value":9409000000},{"time":"2019-12-30","value":10642000000},{"time":"2020-12-30","value":10876000000},{"time":"2021-12-30","value":12189000000},{"time":"2022-12-30","value":12814000000},{"time":"2023-12-30","value":13336000000}],"Stockholders Equity":[{"time":"2014-12-30","value":2766000000},{"time":"2015-12-30","value":-96000000},{"time":"2016-12-30","value":-952000000},{"time":"2017-12-30","value":-1727000000},{"time":"2018-12-30","value":-1276000000},{"time":"2019-12-30","value":-683000000},{"time":"2020-12-30","value":-541000000},{"time":"2021-12-30","value":-23000000},{"time":"2022-12-30","value":131000000},{"time":"2023-12-30","value":739000000}],"ROE":[{"time":"2014-12-30","value":0.46963123644251625},{"time":"2015-12-30","value":-6.354166666666667},{"time":"2016-12-30","value":-0.5882352941176471},{"time":"2017-12-30","value":0.0897510133178923},{"time":"2018-12-30","value":-0.7570532915360502},{"time":"2019-12-30","value":-1.2708638360175695},{"time":"2020-12-30","value":-1.7541589648798521},{"time":"2021-12-30","value":-54.130434782608695},{"time":"2022-12-30","value":10.404580152671755},{"time":"2023-12-30","value":2.3125845737483086}],"ROA":[{"time":"2014-12-30","value":-0.09651731747097765},{"time":"2015-12-30","value":0.131513055919876},{"time":"2016-12-30","value":0.12631454566938438},{"time":"2017-12-30","value":0.15728557504873295},{"time":"2018-12-30","value":0.142629397385482},{"time":"2019-12-30","value":0.1485623003194888},{"time":"2020-12-30","value":0.12936741449062156},{"time":"2021-12-30","value":0.13676265485273606},{"time":"2022-12-30","value":0.12962384891524895},{"time":"2023-12-30","value":0.17201559688062387}]}

Motorola Solutions, Inc. provides public safety and enterprise security solutions 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 public safety and enterprise command center, unified communications applications, mobile video equipment, and video software solutions; repair, technical support, and maintenance services; and monitoring, software updates, and cybersecurity services. 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.

Sector

10-Q
9/30/23
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10-K
12/31/22
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12/31/18
10-Q
9/29/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Motorola Solutions, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$2.189B	$2.43B	$2.682B	$2.942B	$3.207B	$3.475B	$3.742B	$4.004B	$4.258B	$4.5B	$4.725B	$47.25B
DCF		$2.113B	$2.028B	$1.934B	$1.834B	$1.728B	$1.618B	$1.505B	$1.392B	$1.279B	$1.168B	$11.68B
Value	$28.28B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 14%

Earnings Stability 83%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	11%	9.3%	-2.4%	13%	11%	13%	15%	15%	17%	14%
ROA	13%	13%	16%	14%	15%	13%	14%	13%	17%	18%
ROE	-640%	-59%	9%	-76%	-130%	-180%	-5.4K%	1K%	230%	260%

What is the average Net Margin?

The average Net Margin over the past 5 years is +14.05%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.98%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +14.32%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.28%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -753.26%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -5.72%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	5.30	4.93	4.05	6.10	3.27	3.72	3.58	3.84	4.09	3.02
Debt Equity	-45.83	-4.63	-2.62	-4.20	-7.54	-9.59	-247.83	45.92	9.92	12.33
MIN
Graham Stability	-	-	-19%	100%	100%	100%	100%	100%	100%	-19%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 3.02.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.24.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.19.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	7.4%	6.3%	10%	9.5%	0.92%
Net Income	17%	12%	22%	25%	8.1%
Stockholders Equity	-	-	-	460%	-
FCF	10%	15%	8.7%	14%	-0.85%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +6.32%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.92%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +12.09%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +8.13%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +15.32%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.85%.