Motorola Solutions Operating Margin vs. Price To Sales

MSI Stock  USD 499.70  0.96  0.19%   
Based on Motorola Solutions' profitability indicators, Motorola Solutions is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess Motorola Solutions' ability to earn profits and add value for shareholders.

Motorola Solutions Operating Profit Margin

0.24

As of now, Motorola Solutions' Price Sales Ratio is increasing as compared to previous years. As of now, Motorola Solutions' Non Operating Income Net Other is increasing as compared to previous years. The Motorola Solutions' current Net Income Per Share is estimated to increase to 10.75, while Accumulated Other Comprehensive Income is projected to decrease to (2.7 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.310.4981
Way Down
Pretty Stable
For Motorola Solutions profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Motorola Solutions to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Motorola Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Motorola Solutions's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Motorola Solutions over time as well as its relative position and ranking within its peers.
  

Motorola Solutions' Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
For more detail on how to invest in Motorola Stock please use our How to Invest in Motorola Solutions guide.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Motorola Solutions. If investors know Motorola will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Motorola Solutions listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.219
Dividend Share
3.92
Earnings Share
9.11
Revenue Per Share
63.946
Quarterly Revenue Growth
0.092
The market value of Motorola Solutions is measured differently than its book value, which is the value of Motorola that is recorded on the company's balance sheet. Investors also form their own opinion of Motorola Solutions' value that differs from its market value or its book value, called intrinsic value, which is Motorola Solutions' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Motorola Solutions' market value can be influenced by many factors that don't directly affect Motorola Solutions' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Motorola Solutions' value and its price as these two are different measures arrived at by different means. Investors typically determine if Motorola Solutions is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Motorola Solutions' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Motorola Solutions Price To Sales vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Motorola Solutions's current stock value. Our valuation model uses many indicators to compare Motorola Solutions value to that of its competitors to determine the firm's financial worth.
Motorola Solutions is regarded second in operating margin category among its peers. It is regarded third in price to sales category among its peers fabricating about  28.98  of Price To Sales per Operating Margin. As of now, Motorola Solutions' Operating Profit Margin is increasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Motorola Solutions' earnings, one of the primary drivers of an investment's value.

Motorola Solutions' Earnings Breakdown by Geography

Motorola Price To Sales vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Motorola Solutions

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.27 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Motorola Solutions

P/S

 = 

MV Per Share

Revenue Per Share

 = 
7.85 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Motorola Price To Sales Comparison

Motorola Solutions is currently under evaluation in price to sales category among its peers.

Motorola Solutions Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Motorola Solutions, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Motorola Solutions will eventually generate negative long term returns. The profitability progress is the general direction of Motorola Solutions' change in net profit over the period of time. It can combine multiple indicators of Motorola Solutions, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-2.5 B-2.7 B
Operating Income2.3 B1.2 B
Income Before Tax2.1 B2.3 B
Total Other Income Expense Net-148 M-155.4 M
Net Income1.7 B1.8 B
Income Tax Expense432 M350.1 M
Net Income Applicable To Common Shares1.2 B997.3 M
Net Income From Continuing Ops1.7 B1.8 B
Non Operating Income Net Other92 M96.6 M
Interest Income33 M31.4 M
Net Interest Income-216 M-226.8 M
Change To Netincome-8.1 M-7.7 M
Net Income Per Share 10.23  10.75 
Income Quality 1.20  0.69 
Net Income Per E B T 0.80  0.77 

Motorola Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Motorola Solutions. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Motorola Solutions position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Motorola Solutions' important profitability drivers and their relationship over time.

Use Motorola Solutions in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Motorola Solutions position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Motorola Solutions will appreciate offsetting losses from the drop in the long position's value.

Motorola Solutions Pair Trading

Motorola Solutions Pair Trading Analysis

The ability to find closely correlated positions to Motorola Solutions could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Motorola Solutions when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Motorola Solutions - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Motorola Solutions to buy it.
The correlation of Motorola Solutions is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Motorola Solutions moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Motorola Solutions moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Motorola Solutions can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Motorola Solutions position

In addition to having Motorola Solutions in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether Motorola Solutions offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Motorola Solutions' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Motorola Solutions Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Motorola Solutions Stock:
Check out Correlation Analysis.
For more detail on how to invest in Motorola Stock please use our How to Invest in Motorola Solutions guide.
You can also try the Stocks Directory module to find actively traded stocks across global markets.
To fully project Motorola Solutions' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Motorola Solutions at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Motorola Solutions' income statement, its balance sheet, and the statement of cash flows.
Potential Motorola Solutions investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Motorola Solutions investors may work on each financial statement separately, they are all related. The changes in Motorola Solutions's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Motorola Solutions's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.