MSI

Motorola Solutions Inc.

TMT


Presented:07/10/2013
Price:$58.03
Cap:$15.80B
Current Price:$473.41
Cap:$78.98B

Presented

Date07/10/2013
Price$58.03
Market Cap$15.80B
Ent Value$14.53B
P/E Ratio12.85x
Book Value$12.44
Div Yield2%
Shares O/S271.66M
Ave Daily Vol2,180,000
Short Int2.68%

Current

Price$473.41
Market Cap$78.98B
Motorola Solutions, Inc. provides mission critical communication infrastructure, devices, software, and services worldwide. It operates in two segments, Government and Enterprise. The Government segment designs, manufactures, sells, and services public safety communications systems, commercial two-way radio systems, devices, and software. This segment serves government, state and local public safety, and first responder agencies, as well as commercial and industrial customers who operate private communications networks and manage a mobile workforce. The Enterprise segment designs, manufactures, sells, and services rugged and enterprise-grade mobile computers and tablets; laser/imaging/RFID based data capture products; and wireless local area network and integrated digital enhanced network infrastructure and software. This segment serves customers in retail and hospitality, transportation and logistics, manufacturing, energy and utilities, education, and healthcare industries, as well as warehouse and distribution centers through distributors, value-added resellers, and independent software vendors. The company was formerly known as Motorola, Inc. and changed its name to Motorola Solutions, Inc. in January 2011. Motorola Solutions, Inc. was founded in 1928 and is headquartered in Schaumburg, Illinois.

Highlights

MSI’s revenue base is largely reliant upon government spending on radios and security devices (~80% of EBIT), which has been relatively stable. The enterprise business makes up the other ~20% of EBIT, and has been problematic during recent quarters due to cyclicality and the lumpiness of orders. The presenter believes MSI will use its free cash to repurchase stock, and given the ~$1.3 billion net-cash balance sheet, it’s feasible the company could lever up and buy back up to 25% of the float over the next two years if it wanted to.

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