📊 MSI Key Takeaways
Is MSI a Good Investment? Thesis Analysis
Motorola Solutions demonstrates strong operational fundamentals with robust revenue growth of 8% YoY and exceptional profitability margins (51.7% gross, 25.6% operating). The company generates substantial free cash flow of $2.6B with a 22% FCF margin, though elevated leverage at 3.49x debt-to-equity requires monitoring.
Why Buy MSI? Key Strengths
- High profitability margins (gross 51.7%, operating 25.6%, net 18.4%) indicate pricing power and operational efficiency
- Strong free cash flow generation of $2.6B with 22% FCF margin supports capital returns and debt reduction
- Solid revenue growth of 8% YoY with growing net income despite margin pressures
- Exceptional ROE of 89.4% demonstrates efficient capital deployment
- Adequate interest coverage of 8.3x indicates manageable debt service obligations
- Positive insider activity with 37 Form 4 filings suggesting management confidence
MSI Investment Risks to Consider
- Elevated leverage at 3.49x debt-to-equity with $8.4B long-term debt limits financial flexibility
- Tight liquidity position (current ratio 1.04x, quick ratio 0.87x) provides minimal cushion for operational disruptions
- Flat net income growth (-0.3% YoY) despite revenue growth suggests margin compression or increased costs
- Significant debt burden of $8.4B against modest equity base of $2.4B raises refinancing and rate sensitivity concerns
- Heavy reliance on free cash flow for debt service limits reinvestment capacity
Key Metrics to Watch
- Operating margin trend and gross margin sustainability amid competitive pressures
- Free cash flow generation and debt reduction pace relative to $8.4B outstanding
- Revenue growth acceleration potential in core communications equipment segment
- Current ratio improvement to >1.2x and quick ratio strengthening
- Interest coverage ratio stability amid potential interest rate environment changes
MSI Financial Metrics
💡 AI Analyst Insight
The 22.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
MSI Profitability Ratios
MSI vs Default Sector
How Motorola Solutions, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MSI Overvalued or Undervalued?
Based on fundamental analysis, Motorola Solutions, Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MSI Balance Sheet & Liquidity
MSI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Motorola Solutions, Inc.'s revenue has grown significantly by 43% over the 5-year period, indicating strong business expansion. The most recent EPS of $9.93 reflects profitable operations.
MSI Growth Metrics (YoY)
MSI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.8B | $562.0M | $3.29 |
| Q2 2025 | $2.6B | $404.0M | $2.37 |
| Q1 2025 | $2.4B | -$39.0M | $-0.23 |
| Q3 2024 | $2.6B | $464.0M | $2.70 |
| Q2 2024 | $2.4B | $371.0M | $2.15 |
| Q1 2024 | $2.2B | -$39.0M | $-0.23 |
| Q3 2023 | $2.4B | $279.0M | $1.63 |
| Q2 2023 | $2.1B | $228.0M | $1.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MSI Capital Allocation
MSI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Motorola Solutions, Inc. (CIK: 0000068505)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773692726.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773692681.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773692560.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773692490.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773692462.xml | View → |
❓ Frequently Asked Questions about MSI
What is the AI rating for MSI?
Motorola Solutions, Inc. (MSI) has an AI rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MSI's key strengths?
Claude: High profitability margins (gross 51.7%, operating 25.6%, net 18.4%) indicate pricing power and operational efficiency. Strong free cash flow generation of $2.6B with 22% FCF margin supports capital returns and debt reduction.
What are the risks of investing in MSI?
Claude: Elevated leverage at 3.49x debt-to-equity with $8.4B long-term debt limits financial flexibility. Tight liquidity position (current ratio 1.04x, quick ratio 0.87x) provides minimal cushion for operational disruptions.
What is MSI's revenue and growth?
Motorola Solutions, Inc. reported revenue of $11.7B.
Does MSI pay dividends?
Motorola Solutions, Inc. pays dividends, with $728.0M distributed to shareholders in the trailing twelve months.
Where can I find MSI SEC filings?
Official SEC filings for Motorola Solutions, Inc. (CIK: 0000068505) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MSI's EPS?
Motorola Solutions, Inc. has a diluted EPS of $12.75.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MSI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Motorola Solutions, Inc. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MSI stock overvalued or undervalued?
Valuation metrics for MSI: ROE of 89.4% (sector avg: 15%), net margin of 18.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy MSI stock in 2026?
Our dual AI analysis gives Motorola Solutions, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MSI's free cash flow?
Motorola Solutions, Inc.'s operating cash flow is $2.8B, with capital expenditures of $265.0M. FCF margin is 22.0%.
How does MSI compare to other Default stocks?
Vs Default sector averages: Net margin 18.4% (avg: 12%), ROE 89.4% (avg: 15%), current ratio 1.04 (avg: 1.8).