Motorola SolutionsMIL:1MSI -2.57%23 Interest Coverage is 5.23 as of Mar. 2026, which is 26% below its 10-year median of 7.08. GuruFocus rates MIL:1MSI with a GF Score™ of 23/100 and a GF Value™ of €405.75 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,671 Hardware companies, Motorola Solutions ranks worse than 65.47% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Motorola Solutions's
Operating Income
for the
three
months ended in Mar. 2026 was €503 Mil. Motorola Solutions's Interest Expense for the
three
months ended in Mar. 2026 was €-96 Mil.
Motorola Solutions's interest coverage for the quarter that ended in Mar. 2026 was 5.23.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Motorola Solutions's Interest Coverage or its related term are showing as below:
MIL:1MSI'
s Interest Coverage Range Over the Past 10 Years
Min: 5.15 Med: 7.08 Max: 9.47
Current: 7.33
MIL:1MSI's Interest Coverage is ranked worse than 65.47% of 1671
companies
in the Hardware industry
Industry Median: 13.79
vs MIL:1MSI: 7.33
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Motorola Solutions Interest Coverage Related Terms
Motorola Solutions Interest Coverage Historical Data
* Premium members only.
The historical data trend for Motorola Solutions's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MIL:1MSI vs LITE, HPE, CIEN: Interest Coverage Comparison
For the Communication Equipment subindustry, Motorola Solutions's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Motorola Solutions's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Motorola Solutions's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (MIL:1MSI) has a Interest Coverage of 5.23 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Motorola Solutions and its competitors. This is 26% below median its historical median of 7.08. Over the past decade, Motorola Solutions' Interest Coverage has ranged from 5.15 to 9.47. According to the industry distribution chart, Motorola Solutions ranks #1094 out of 1671 companies in the Hardware industry, placing it in the top 65.5%.
Is Motorola Solutions' Interest Coverage too high?
Motorola Solutions' current Interest Coverage of 5.23 is 26% below median its 10-year median of 7.08. Over the past 10 years, this metric has ranged from a low of 5.15 to a high of 9.47. The Hardware industry median Interest Coverage is 13.79. Motorola Solutions' value of 5.23 is 62.1% below this industry median. Based on the distribution chart, Motorola Solutions ranks #1094 out of 1671 companies in the Hardware industry, which is below the industry midpoint. 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' Interest Coverage compare to LITE and HPE?
According to the Hardware industry distribution chart, Motorola Solutions ranks #1094 out of 1671 companies for Interest Coverage. This places Motorola Solutions in the lower half of its industry. The industry median Interest Coverage is 13.79. Motorola Solutions' value of 5.23 is 62.1% below this benchmark. Historically, Motorola Solutions' own Interest Coverage has ranged from 5.15 to 9.47 over the past decade. While the company's 10-year median is 7.08 vs. the industry median of 13.79, Motorola Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.79, based on 1,671 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorola Solutions's current Interest Coverage of 5.23 is 62.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Motorola Solutions and its competitors. For the Hardware industry, the median Interest Coverage is 13.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorola Solutions's current Interest Coverage is 5.23, which is 26% below median its own 10-year median of 7.08. 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 Interest Coverage is 5.23, which is 26% below median its 10-year median of 7.08 and 62.1% below the Hardware industry median of 13.79. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Motorola Solutions (MIL:1MSI), the current Interest Coverage is 5.23 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:
Interest Coverage: 5.23 (26% below median its 10-year median of 7.08)
GF Value™: €405.75 vs. price of €345.30 (14.9% below fair value)
Industry Position: 62.1% below the Hardware median (#1094 of 1671)
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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