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MSI (Motorola Solutions) Earnings Yield (Joel Greenblatt) % : 2.97% (As of Jun. 2024)


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What is Motorola Solutions Earnings Yield (Joel Greenblatt) %?

Motorola Solutions's Enterprise Value for the quarter that ended in Jun. 2024 was $69,880 Mil. Motorola Solutions's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 was $2,076 Mil. Motorola Solutions's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2024 was 2.97%.

The historical rank and industry rank for Motorola Solutions's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

MSI' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -7.62   Med: 3.99   Max: 8.48
Current: 2.56

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Motorola Solutions was 8.48%. The lowest was -7.62%. And the median was 3.99%.

MSI's Earnings Yield (Joel Greenblatt) % is ranked worse than
52% of 2477 companies
in the Hardware industry
Industry Median: 2.87 vs MSI: 2.56

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Motorola Solutions's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2024 was 12.84%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Motorola Solutions Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Motorola Solutions's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Motorola Solutions Earnings Yield (Joel Greenblatt) % Chart

Motorola Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Earnings Yield (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.84 4.23 3.53 3.63 4.21

Motorola Solutions Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Earnings Yield (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.82 4.62 4.21 3.03 2.97

Competitive Comparison of Motorola Solutions's Earnings Yield (Joel Greenblatt) %

For the Communication Equipment subindustry, Motorola Solutions's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Motorola Solutions's Earnings Yield (Joel Greenblatt) % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Motorola Solutions's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Motorola Solutions's Earnings Yield (Joel Greenblatt) % falls into.



Motorola Solutions Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Motorola Solutionss Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2023 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=2395/56895.558
=4.21 %

Motorola Solutions's EBIT for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,076 Mil.



Motorola Solutions  (NYSE:MSI) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Motorola Solutions Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Motorola Solutions's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Motorola Solutions Business Description

Industry
Address
500 West Monroe Street, Suite 4400, Chicago, IL, USA, 60661
Motorola Solutions is a leading provider of communications and analytics, primarily serving public safety departments as well as schools, hospitals, and businesses. The bulk of the firm's revenue comes from sales of land mobile radios and radio network infrastructure, but the firm also sells surveillance equipment and dispatch software. Most of Motorola's revenue comes from government agencies, while roughly 25% comes from schools and private businesses. Motorola has customers in over 100 countries and in every state in the United States.
Executives
Cynthia Yazdi officer: SVP, Communications & Brand 500 WEST MONROE STREET, CHICAGO IL 60661
Gregory Q Brown director, officer: Chairman and CEO 500 WEST MONROE ST., CHICAGO IL 60661
Jason J Winkler officer: EVP and CFO 500 WEST MONROE STREET, CHICAGO IL 60661
James A Niewiara officer: SVP, GENERAL COUNSEL MOTOROLA SOLUTIONS, INC., 500 WEST MONROE ST., CHICAGO IL 60661
John P Molloy officer: EVP and COO 500 WEST MONROE ST., CHICAGO IL 60661
Rajan Naik officer: SVP, Strategy & Ventures 500 WEST MONROE STREET, CHICAGO IL 60661
Kenneth D Denman director
Karen E Dunning officer: SVP, Human Resources MOTOROLA SOLUTIONS, INC., 500 WEST MONROE ST., CHICAGO IL 60661
Katherine A Maher officer: CVP and CAO 500 WEST MONROE ST., CHICAGO IL 60661
Mark S. Hacker officer: EVP, GC & Chief Admin Officer 500 WEST MONROE ST., CHICAGO IL 60661
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Clayton M Jones director 400 COLLINS ROAD NE, CEDAR RAPIDS IA 52498
Judy C Lewent director PO BOX 100, WHITEHOUSE STATION NJ 08889
Ayanna Howard director 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Mahesh Saptharishi officer: EVP and CTO 500 WEST MONROE ST., CHICAGO IL 60661