Is the business good?
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.
22%
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 4.4% · 12 months to Q2 2026
- Cash conversion
- 1.25×
Cash conversion · 1.13× a year ago · every dollar of reported profit arrived as cash, and more
- 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 from the cash flow statement.
Communication Equipment
Ranks #8 of 21 by Smart Score