Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Motorola Solutions's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.54. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Motorola Solutions's Degree of Financial Leverage or its related term are showing as below:
MIL:1MSI's Degree of Financial Leverage is ranked better than 78.49% of 2413
companies
in the Hardware industry
Industry Median: 0.99
vs MIL:1MSI: 0.54
Motorola Solutions (MIL:1MSI) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Motorola Solutions Degree of Financial Leverage Related Terms
Motorola Solutions Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Motorola Solutions's Degree of Financial Leverage 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.
Motorola Solutions Degree of Financial Leverage Chart
MIL:1MSI vs LITE, HPE, CIEN: Degree of Financial Leverage Comparison
For the Communication Equipment subindustry, Motorola Solutions's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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 Degree of Financial Leverage vs Hardware Industry
For the Hardware industry and Technology sector, Motorola Solutions's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Motorola Solutions's Degree of Financial Leverage falls into.
* 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 0.54 mean?
Motorola Solutions (MIL:1MSI) has a Degree of Financial Leverage of 0.54 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Motorola Solutions and its competitors. According to the industry distribution chart, Motorola Solutions ranks #519 out of 2413 companies in the Hardware industry, placing it in the top 21.5%.
Is Motorola Solutions' Degree of Financial Leverage too high?
Motorola Solutions' current Degree of Financial Leverage is 0.54. The Hardware industry median Degree of Financial Leverage is 0.99. Motorola Solutions' value of 0.54 is 45.5% below this industry median. Based on the distribution chart, Motorola Solutions ranks #519 out of 2413 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Motorola Solutions has a GF Score™ of 23/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Motorola Solutions' Degree of Financial Leverage compare to LITE and HPE?
According to the Hardware industry distribution chart, Motorola Solutions ranks #519 out of 2413 companies for Degree of Financial Leverage. This places Motorola Solutions in the top 22% of its industry — outperforming the majority of peers. The industry median Degree of Financial Leverage is 0.99. Motorola Solutions' value of 0.54 is 45.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Hardware company?
The median Degree of Financial Leverage among Hardware companies is 0.99, based on 2,413 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorola Solutions's current Degree of Financial Leverage of 0.54 is 45.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Motorola Solutions and its competitors. For the Hardware industry, the median Degree of Financial Leverage is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorola Solutions's current Degree of Financial Leverage is 0.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorola Solutions stock overvalued right now?
Based on GuruFocus' analysis, Motorola Solutions (MIL:1MSI) is currently considered Modestly Undervalued. The stock's GF Value™ is €405.75, compared to a current price of €345.30 — trading 14.9% below its estimated fair value. The current Degree of Financial Leverage is 0.54 and 45.5% below the Hardware industry median of 0.99. Motorola Solutions' overall GF Score™ is 23/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Motorola Solutions (MIL:1MSI), the current Degree of Financial Leverage is 0.54 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Motorola Solutions (MIL:1MSI) Overvalued in 2026?
Based on GuruFocus' analysis, Motorola Solutions stock appears to be undervalued.
The current stock price of €345.30 is trading 14.9% below its estimated GF Value™ of €405.75.
GuruFocus considers Motorola Solutions to be Modestly Undervalued.
Key valuation signals for MIL:1MSI:
Degree of Financial Leverage: 0.54
GF Value™: €405.75 vs. price of €345.30 (14.9% below fair value)
Industry Position: 45.5% below the Hardware median (#519 of 2413)
No single metric tells the full story. See the MIL:1MSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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, dispatch software, and other networking capabilities. 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.
23GF Score
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