MSIMotorola Solutions
Is the business good?
The checks split: earnings fully cash-backed (1.3×) and margins widening, but returns that lean on debt.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 86% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MSI?
Motorola Solutions earns 22% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 13 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Communication Equipment median 5.0% · 12 months to Q2 2026
- Cash conversion
- 1.26×
Cash conversion · 1.19× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.95%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 19% |
| FY2021 | 20% |
| FY2022 | 18% |
| FY2023 | 23% |
| FY2024 | 25% |
| FY2025 | 26% |
Details›
- Gross margin12 months to Q2 2026
- 52%
- Operating margin12 months to Q2 2026
- 25%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- 22%
- R&D as % of revenue
- 8.3%
- Revenue, trailing twelve months
- $12.2B
- Free cash flow, trailing twelve months
- $2.68B
- Net income, trailing twelve months
- $2.13B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Equipment
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