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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
85.5%
Sector: -1.4%
Dividend Analysis audit
GROWTH
0.96%
Trailing Yield
$0.96
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
34%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Motorola Solutions, Inc. (MSI) receives a "Hold" rating with a composite score of 49.9/100, ranked #757 out of 4446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 48/100. This is quantitative analysis only — not investment advice.
Motorola Solutions, Inc. (MSI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Motorola Solutions, Inc. Do?
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. Motorola Solutions, Inc. (MSI) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Gregory Q. Brown and employs approximately 20,000 people, headquartered in Chicago, Illinois. With a market capitalization of $71.9B, MSI is one of the prominent companies in the Technology sector.
Motorola Solutions, Inc. (MSI) Stock Rating — Hold (April 2026)
As of April 2026, Motorola Solutions, Inc. receives a Hold rating with a composite score of 49.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MSI ranks #757 out of 4,446 stocks in our coverage universe. Within the Technology sector, Motorola Solutions, Inc. ranks #70 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MSI Stock Price and 52-Week Range
Motorola Solutions, Inc. (MSI) currently trades at $433.69. The stock lost $8.81 (2.0%) in the most recent trading session. The 52-week high for MSI is $492.22, which means the stock is currently trading -11.9% from its annual peak. The 52-week low is $359.36, putting the stock 20.7% above its annual trough. Recent trading volume was 844K shares, suggesting relatively thin trading activity.
Is MSI Overvalued or Undervalued? — Valuation Analysis
Motorola Solutions, Inc. (MSI) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 35.46x, compared to the Technology sector average of 45.27x — a discount of 22%. The price-to-book ratio stands at 30.30x, versus the sector average of 3.16x. The price-to-sales ratio is 6.63x, compared to 1.06x for the average Technology stock. On an enterprise value basis, MSI trades at 26.69x EV/EBITDA, versus 12.79x for the sector. The EV/EBIT multiple is 27.62x.
Overall, MSI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Motorola Solutions, Inc. Profitability — ROE, Margins, and Quality Score
Motorola Solutions, Inc. (MSI) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 85.5%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 10.7% versus the sector average of -1.0%.
On a margin basis, Motorola Solutions, Inc. reports gross margins of 51.4%, compared to 50.9% for the sector. The operating margin is 24.8% (sector: -0.5%). Net profit margin stands at 18.7%, versus -1.5% for the average Technology stock. Revenue growth is running at 14.5% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MSI Debt, Balance Sheet, and Financial Health
Motorola Solutions, Inc. has a debt-to-equity ratio of 699.0%, compared to the Technology sector average of 43.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.04x, suggesting adequate working capital coverage. Total debt on the balance sheet is $9.16B. Cash and equivalents stand at $894M.
MSI has a beta of 0.72, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Motorola Solutions, Inc. is 88/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
Motorola Solutions, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Motorola Solutions, Inc. reported revenue of $11.09B and earnings per share (EPS) of $12.93. Net income for the quarter was $2.07B. Gross margin was 51.4%. Operating income came in at $2.75B.
In FY 2025, Motorola Solutions, Inc. reported revenue of $11.68B and earnings per share (EPS) of $12.93. Net income for the quarter was $2.16B. Gross margin was 51.7%. Revenue grew 8.0% year-over-year compared to FY 2024. Operating income came in at $2.99B.
In Q3 2025, Motorola Solutions, Inc. reported revenue of $3.01B and earnings per share (EPS) of $3.37. Net income for the quarter was $564M. Gross margin was 51.6%. Revenue grew 7.8% year-over-year compared to Q3 2024. Operating income came in at $770M.
In Q2 2025, Motorola Solutions, Inc. reported revenue of $2.77B and earnings per share (EPS) of $3.08. Net income for the quarter was $515M. Gross margin was 51.1%. Revenue grew 5.2% year-over-year compared to Q2 2024. Operating income came in at $692M.
Over the past 8 quarters, Motorola Solutions, Inc. has demonstrated a growth trajectory, with revenue expanding from $2.63B to $11.09B. Investors analyzing MSI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MSI Dividend Yield and Income Analysis
Motorola Solutions, Inc. (MSI) currently pays a dividend yield of 1.0%. At this yield, a $10,000 investment in MSI stock would generate approximately $$96.00 in annual dividend income. With a net margin of 18.7%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
MSI Momentum and Technical Analysis Profile
Motorola Solutions, Inc. (MSI) has a momentum factor score of 48/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 30/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MSI vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Motorola Solutions, Inc. (MSI) ranks #70 out of 584 stocks based on the Blank Capital composite score. This places MSI in the top quartile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing MSI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MSI vs S&P 500 (SPY) comparison to assess how Motorola Solutions, Inc. stacks up against the broader market across all factor dimensions.
MSI Next Earnings Date
No upcoming earnings date has been announced for Motorola Solutions, Inc. (MSI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MSI? — Investment Thesis Summary
Motorola Solutions, Inc. presents a balanced picture with arguments on both sides. Low volatility (stability score 88/100) reduces downside risk.
In summary, Motorola Solutions, Inc. (MSI) earns a Hold rating with a composite score of 49.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MSI stock.
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Institutional Research Dossier
Motorola Solutions, Inc. (MSI) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Motorola Solutions (MSI) currently holds a "Hold" rating, a position we find justified given its strong market position in mission-critical communications and analytics, balanced against a valuation that appears to reflect much of its future growth potential. The company's consistent profitability and high return on equity are attractive, but the recent negative free cash flow and relatively high debt levels warrant caution. Investors should closely monitor MSI's ability to maintain its competitive edge and effectively manage its capital allocation in the face of evolving technological landscapes and increasing competition.
MSI's transition towards software and services, particularly in the public safety sector, offers promising growth avenues. However, the current valuation suggests that the market has already priced in a significant portion of this anticipated growth. While the company's stability and low beta make it a relatively safe investment in volatile markets, the lack of a substantial margin of safety at the current price necessitates a neutral stance. We advise investors to await a more favorable entry point or evidence of accelerated growth before considering a more bullish position.
Business Strategy & Overview
Motorola Solutions operates primarily in two segments: Products and Systems Integration, and Software and Services. The Products and Systems Integration segment focuses on providing infrastructure, devices, and video security solutions, catering to government, public safety, and commercial customers. This includes land mobile radio (LMR) communications, video security and access control devices, and related infrastructure. The Software and Services segment offers repair, technical support, software updates, cybersecurity services, and command center software solutions, delivered both on-premise and as a service. This segment is increasingly important as MSI shifts towards a recurring revenue model.
MSI's strategic positioning centers around providing mission-critical communications and analytics solutions, primarily to public safety and government agencies. This focus allows the company to build strong relationships with its customers and develop specialized solutions tailored to their needs. The company's product pipeline includes advancements in LMR technology, video analytics, and command center software, all designed to enhance the capabilities of its core customer base. A key aspect of their strategy is the integration of these various solutions to create a comprehensive ecosystem.
The industry context in which MSI operates is characterized by increasing demand for secure and reliable communication systems, particularly in the face of rising security threats and the need for efficient emergency response. The company faces competition from other providers of communication and security solutions, but its strong brand reputation, established customer relationships, and focus on mission-critical applications provide a competitive advantage. The shift towards cloud-based solutions and the integration of artificial intelligence into security systems are key trends shaping the industry.
MSI's business model is evolving from a traditional hardware-centric approach to a more software and services-oriented model. This transition is driven by the increasing demand for recurring revenue streams and the need to provide more comprehensive solutions to customers. The company is investing in research and development to develop new software and analytics capabilities, and is also acquiring companies with complementary technologies to expand its product portfolio. The success of this transition will be crucial to MSI's long-term growth prospects.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
14.5%
Sector: 14.2%
IN LINE
Economic Moat Analysis
Motorola Solutions possesses a narrow economic moat, primarily derived from switching costs and intangible assets. The high switching costs associated with mission-critical communication systems create a degree of customer stickiness. Public safety agencies and government organizations rely heavily on these systems for their daily operations, and the disruption and cost associated with switching to a new provider can be significant. This provides MSI with a competitive advantage in retaining its existing customer base.
The company's brand reputation and established relationships with public safety agencies also contribute to its narrow moat. MSI has a long history of providing reliable and secure communication solutions, and its brand is well-recognized and respected in the industry. This reputation provides a barrier to entry for new competitors and allows MSI to command premium pricing for its products and services. Furthermore, the specialized nature of its solutions and the regulatory requirements in the public safety sector create additional barriers to entry.
However, the moat is not wide due to the presence of viable competitors and the potential for technological disruption. While MSI has a strong market position, companies like L3Harris Technologies and Thales also offer competing solutions. The rapid pace of technological change in the communication and security industries also poses a threat to MSI's competitive advantage. New technologies, such as broadband-based communication systems and cloud-based security solutions, could potentially disrupt the market and erode MSI's moat.
The increasing importance of software and services in MSI's business model could potentially strengthen its moat over time. Recurring revenue streams from software subscriptions and service contracts provide a more stable and predictable source of revenue, and also increase customer stickiness. However, the company needs to continue to invest in research and development to maintain its technological leadership and differentiate its offerings from competitors. The ability to successfully integrate new technologies and expand its software and services portfolio will be crucial to widening its economic moat.
Financial Health & Profitability
Motorola Solutions demonstrates a mixed financial profile. The company's revenue has shown consistent growth, with a 14.5% increase in the latest fiscal year to $11.68 billion, compared to 14.0% sector growth. This growth is further evidenced by the quarterly revenue increases from $2.17B in Q1 2023 to $3.01B in Q3 FY2025. Gross margins have remained relatively stable around 51%, indicating consistent pricing power and cost management. Operating margins are also strong, consistently above 20% and reaching 25.6% in the latest quarter, significantly outperforming the sector average of -0.5%.
Net income has also shown positive trends, increasing from $1.71 billion in FY2023 to $2.16 billion in the latest fiscal year. The company's return on equity (ROE) is exceptionally high at 85.5%, significantly exceeding the sector average of -1.5%. This indicates efficient utilization of equity to generate profits. However, the company's free cash flow (FCF) is a concern, with a negative FCF of -$2.46 billion in the latest fiscal year. This contrasts sharply with the $1.55 billion in FCF generated in FY2024 and requires further investigation to understand the underlying drivers.
The balance sheet reveals a relatively high level of debt, with total debt of $9.16 billion and a debt-to-equity ratio of 699.00, significantly higher than the sector average of 43.00. While the current ratio of 1.04 indicates sufficient liquidity to cover short-term obligations, the high debt level warrants caution. The company's cash balance of $894 million provides some cushion, but the negative FCF raises concerns about its ability to service its debt obligations in the long term.
Overall, Motorola Solutions exhibits strong profitability and revenue growth, but its negative free cash flow and high debt levels are areas of concern. Investors should closely monitor the company's ability to improve its cash flow generation and manage its debt obligations. The company's strong margins and high ROE are positive indicators, but the financial health needs to be carefully assessed in light of the cash flow and debt situation.
Valuation Assessment
Motorola Solutions' valuation presents a mixed picture. The company's price-to-earnings (P/E) ratio of 35.0x is lower than the sector average of 45.3x, suggesting that the stock may be undervalued relative to its peers. However, it's crucial to consider the company's growth prospects and risk profile when interpreting this metric. The EV/EBITDA ratio of 6.3x is also significantly lower than the sector average of 13.0x, further indicating potential undervaluation based on enterprise value relative to earnings.
However, the negative free cash flow yield raises concerns about the company's ability to generate cash relative to its market capitalization. While the P/E and EV/EBITDA ratios suggest undervaluation, the negative FCF yield indicates that the company is not currently generating sufficient cash to justify its valuation. This discrepancy warrants further investigation to understand the underlying drivers of the negative FCF and assess its sustainability.
Considering the company's historical performance and growth prospects, the current valuation appears to be fair. The company has demonstrated consistent revenue and earnings growth, and its strong market position in mission-critical communications provides a degree of stability. However, the negative FCF and high debt levels pose risks to the company's future performance and could potentially limit its growth potential. The market seems to be pricing in the expected growth from the software and services segment, but the execution risk associated with this transition needs to be considered.
Overall, Motorola Solutions' valuation is not excessively cheap or expensive. The P/E and EV/EBITDA ratios suggest potential undervaluation, but the negative FCF and high debt levels warrant caution. Investors should carefully consider the company's growth prospects, risk profile, and cash flow generation when assessing its valuation. A more favorable entry point may be warranted given the uncertainties surrounding the company's cash flow and debt situation.
Risk & Uncertainty
Several specific risks could impact Motorola Solutions' performance. The company's reliance on government and public safety contracts exposes it to political and budgetary uncertainties. Changes in government spending priorities or delays in contract awards could negatively impact revenue growth. Furthermore, the competitive landscape in the communication and security industries is intensifying, with new entrants and established players vying for market share. Increased competition could lead to pricing pressure and reduced profitability.
Technological disruption poses another significant risk. The rapid pace of innovation in communication and security technologies could render MSI's existing products and services obsolete. The company needs to continuously invest in research and development to stay ahead of the curve and adapt to changing customer needs. Failure to do so could result in a loss of market share and a decline in revenue.
The company's high debt levels also pose a risk. While the current ratio indicates sufficient liquidity, the high debt-to-equity ratio increases the company's financial risk. Rising interest rates or a decline in profitability could make it more difficult for the company to service its debt obligations. The negative free cash flow further exacerbates this risk, as it limits the company's ability to reduce its debt burden.
Finally, the company's transition towards a software and services-oriented business model carries execution risk. The successful integration of acquired companies and the development of new software and analytics capabilities are crucial to the success of this transition. Failure to execute effectively could result in lower-than-expected revenue growth and reduced profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMotorola Solutions' focus on mission-critical communications provides a stable revenue base and strong customer relationships, ensuring long-term growth.
BULL VIEWThe company's transition to a software and services model will drive higher margins and recurring revenue, leading to increased profitability and shareholder value.
BULL VIEWMSI's strong market position and brand reputation in the public safety sector create a significant competitive advantage, protecting it from new entrants.
The Bear Case
BEAR VIEWMotorola Solutions' negative free cash flow and high debt levels raise concerns about its financial health and ability to invest in future growth.
BEAR VIEWThe company's reliance on government contracts exposes it to political and budgetary uncertainties, potentially leading to revenue declines.
BEAR VIEWIncreasing competition and technological disruption in the communication and security industries could erode MSI's market share and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MSI and 4,400+ other equities.
Motorola Solutions, Inc. exhibits a 368% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
10.7%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
51.4%
Sector: 50.9%
Operating Margin
Core business profitability
24.8%
Sector: -0.5%
Net Margin
Bottom-line profitability
18.7%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $96 annually in dividends at the current trailing rate.
