Motorola Solutions Is No Longer the Brand Behind Phones Such as the Famous Razor

Motorola was once known for their popular phone, the Razor. Coming in different colors and being the thinnest flip phone, they were changing the way we all used cell phones. Once Blackberry and Apple jumped into the market, the company struggled to keep up in demand and changing taste, thus were forced to change their game plan as phones were no longer their strong suite. If we jump into their latest 8-K numbers, we can see how the company’s been doing and if their worth your time and research for a potential investment. 

Published over a year ago
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Reviewed by Gabriel Shpitalnik

Taking a look at a recent 8-K filing, we can see that sales come in at $1.5 billion, which is up 8 percent a year ago, which includes $131 million from Airwave. Managed and support services are up 55 percent, but only up 5 percent if you exclude Airwave. Operation cash flow came in at $348 million, which is up 16 percent. Lastly, earnings per share from continuing operations was at $1.13, up seventy nine percent. Switching gears to the chart, we can see if price agrees with these numbers.

Price was going sideways for quite some time, but now has turned to the upside, which is good news for investors who have been in this stock for a while. Right now, price is moving to the upside with pull backs, allowing for great entry opportunities. Nothing stands out as a potential red flag and this stock has the potential to be a winner

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Motorola Solutions income statement, its balance sheet, and the statement of cash flows. Potential Motorola Solutions investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Motorola Solutions investors may use each financial statement separately, they are all related. The changes in Motorola Solutions's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Motorola Solutions's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Motorola Solutions fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Motorola Solutions performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Motorola Solutions shares is the value that is considered the true value of the share. If the intrinsic value of Motorola is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Motorola Solutions. Please read more on our fundamental analysis page.

How effective is Motorola Solutions in utilizing its assets?

Motorola Solutions reports assets on its Balance Sheet. It represents the amount of Motorola resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Motorola Solutions aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Communications Equipment space. To get a better handle on how balance sheet or income statements item affect Motorola volatility, please check the breakdown of all its fundamentals.

Are Motorola Solutions Earnings Expected to grow?

The future earnings power of Motorola Solutions involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Motorola Solutions factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Motorola Solutions stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Motorola expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Motorola Solutions earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Motorola Solutions dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Motorola one year expected dividend income is about USD2.35 per share.
As of now, Motorola Solutions' Dividend Yield is decreasing as compared to previous years. The Motorola Solutions' current Dividend Payout Ratio is estimated to increase to 0.36, while Dividends Paid is forecasted to increase to (559.5 M).
Last ReportedProjected for Next Year
Dividends Paid-589 M-559.5 M
Dividend Yield 0.01  0.02 
Dividend Payout Ratio 0.34  0.36 
Dividend Paid And Capex Coverage Ratio 6.08  6.39 
Investing in dividend-paying stocks, such as Motorola Solutions is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Motorola Solutions must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Motorola Solutions. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Motorola Solutions Gross Profit

Motorola Solutions Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Motorola Solutions previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Motorola Solutions Gross Profit growth over the last 10 years. Please check Motorola Solutions' gross profit and other fundamental indicators for more details.

Another Deeper Perspective

Risks

You can take a look at the company’s most recent 10-K filing for a full detailed of risks that are outlined, but here are some to keep in mind before investing. A portion of their business is depend upon U.S. government contracts and grants, which are regulated and subject to audits and even cancelations. This could certainly negatively impact the company, which can negatively impact investors return. Also, being in the tech industry, having a security breaking or significant disruption can impact current customers and negatively affect business. Also, the company is not as mainstream as it once was, which means it may be dependent upon other areas for income, and this could prove to be challenging in the future.

Conclusion

In my opinion, there are better stocks out there if you’re looking to get into the tech industry. Many companies provide the same diversified objective while having less risk and higher returns. There’s nothing wrong with this company so go ahead and research if you think this is going to be a great addition to your portfolio. Also, be sure to consult an investing professional to ensure you’re getting the most bang for you buck.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Motorola Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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