CluenexMotorola Solutions Inc MSI
Motorola Solutions Inc scores average on business quality (5.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Motorola Solutions Inc does
Motorola Solutions builds mission-critical communication infrastructure and video security systems, selling hardware, software, and services primarily to government agencies and public safety departments. The firm is expanding its counter-drone security capabilities through the recent buyout of D-Fend to capture rising defense spending.
- What it does best
Locking in government and public safety clients through mission-critical communication networks that prohibit switching. Gross margins sit at 52.0%, trailing peers like Cisco at 64.5% due to hardware-heavy public safety deployments, but pricing power remains firmly protected by multi-year municipal contracts.
- The main risk
A high debt-to-equity ratio of 3.8 and net debt of $8.0 billion expose the balance sheet to sharp refinancing risks if municipal budgets tighten or credit markets freeze, leaving little room for operational missteps.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin hits 24.4% with an exceptional ROE of 85.8%, ranking in the top decile at the 86th sector percentile. Scale drives high returns despite heavy debt.
Mission-critical switching costs lock in government agencies. Operating margins sit in the top quartile at the 71st sector percentile, reflecting deep municipal integration that rivals cannot easily displace.
Revenue grows at 8.0%, sitting in the bottom quartile at the 33rd sector percentile. Growth matches historical expansion but lags tech sector peers like Arista at 28.6%.
Total debt reaches $9.2 billion against $1.2 billion in cash, leaving net debt at $8.0 billion. Free cash flow climbs to $2.7B, but high leverage creates structural fragility.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
4 sold $8.5M outside pre-planned sales.
Our sealed record on MSI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Motorola Solutions Inc scores average on the Cluenex quality check (5.8 of 10), measured against its own industry. Profitability is strong, moat strong, growth steady and financial health weak.
In the last 90 days of SEC Form 4 filings: 4 sold $8.5M outside pre-planned sales.
Oct 29, 2026.
See MSI today
- Today's verdict on MSI, and why
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Cite this page: Cluenex, “Motorola Solutions Inc (MSI)”, https://cluenex.com/stocks/msi/, data as of Oct 10, 2026.