Motorola SolutionsMSI +1.36%94 Return-on-Tangible-Asset is 15.71% as of Mar. 2026, which is 3% above its 10-year median of 15.20. GuruFocus rates MSI with a GF Score™ of 94/100 and a GF Value™ of $460.07 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,498 Hardware companies, Motorola Solutions ranks better than 97.48% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Motorola Solutions's annualizedNet Income for the quarter that ended in Mar. 2026 was $1,464 Mil. Motorola Solutions's average total tangible assets for the quarter that ended in Mar. 2026 was $9,317 Mil. Therefore, Motorola Solutions's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 15.71%.
The historical rank and industry rank for Motorola Solutions's Return-on-Tangible-Asset or its related term are showing as below:
MSI'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -2.33 Med: 15.2 Max: 22.32
Current: 21.78
During the past 13 years, Motorola Solutions's highest Return-on-Tangible-Asset was 22.32%. The lowest was -2.33%. And the median was 15.20%.
MSI's Return-on-Tangible-Asset is ranked better than 97.48% of 2498
companies
in the Hardware industry
Industry Median: 2.44
vs MSI: 21.78
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Motorola Solutions Return-on-Tangible-Asset Related Terms
Motorola Solutions Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Motorola Solutions's Return-on-Tangible-Asset 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.
MSI vs CIEN, LITE, HPE: Return-on-Tangible-Asset Comparison
For the Communication Equipment subindustry, Motorola Solutions's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Hardware Industry
For the Hardware industry and Technology sector, Motorola Solutions's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Motorola Solutions's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 15.71% mean?
Motorola Solutions (MSI) has a Return-on-Tangible-Asset of 15.71% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Motorola Solutions and its competitors. This is near median its historical median of 15.20. According to the industry distribution chart, Motorola Solutions ranks #63 out of 2498 companies in the Hardware industry, placing it in the top 2.5%.
Is Motorola Solutions' Return-on-Tangible-Asset too high?
Motorola Solutions' current Return-on-Tangible-Asset of 15.71% is near median its 10-year median of 15.20. The Hardware industry median Return-on-Tangible-Asset is 2.44. Motorola Solutions' value of 15.71% is 543.9% above this industry median. Based on the distribution chart, Motorola Solutions ranks #63 out of 2498 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 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorola Solutions' Return-on-Tangible-Asset compare to CIEN and LITE?
According to the Hardware industry distribution chart, Motorola Solutions ranks #63 out of 2498 companies for Return-on-Tangible-Asset. This places Motorola Solutions in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.44. Motorola Solutions' value of 15.71% is 543.9% above this benchmark. While the company's 10-year median is 15.20 vs. the industry median of 2.44, Motorola Solutions has consistently been above 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 Return-on-Tangible-Asset for a Hardware company?
The median Return-on-Tangible-Asset among Hardware companies is 2.44, based on 2,498 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Motorola Solutions's current Return-on-Tangible-Asset of 15.71% is 543.9% above 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Motorola Solutions and its competitors. For the Hardware industry, the median Return-on-Tangible-Asset is 2.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorola Solutions's current Return-on-Tangible-Asset is 15.71%, which is near median its own 10-year median of 15.20. 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 (MSI) is currently considered Fairly Valued. The stock's GF Value™ is $460.07, compared to a current price of $422.88 — trading 8.1% below its estimated fair value. The current Return-on-Tangible-Asset is 15.71%, which is near median its 10-year median of 15.20 and 543.9% above the Hardware industry median of 2.44. Motorola Solutions' overall GF Score™ is 94/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Motorola Solutions (MSI), the current Return-on-Tangible-Asset is 15.71% 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 (MSI) Overvalued in 2026?
Based on GuruFocus' analysis, Motorola Solutions stock appears to be undervalued.
The current stock price of $422.88 is trading 8.1% below its estimated GF Value™ of $460.07.
GuruFocus considers Motorola Solutions to be Fairly Valued.
Key valuation signals for MSI:
Return-on-Tangible-Asset: 15.71% (near median its 10-year median of 15.20)
GF Value™: $460.07 vs. price of $422.88 (8.1% below fair value)
Industry Position: 543.9% above the Hardware median (#63 of 2498)
No single metric tells the full story. See the MSI 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.
94GF Score
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