MOT Investment Analysis Report & Stock Research, Motorola, Inc.

Motorola, Incorporated (MOT)

MOT Stock Report

2-Year Price History

View Larger MOT Chart
NYSE:MOT
$6.54
(2/9 3:35PM)
-0.5%
Open$6.65 Mkt Cap$15.2 Billion
High$6.72 52Wk High$9.45
Low$6.49 52Wk Low$2.98
Volume29.6 Million Avg Vol 10D69.8 Million

Ockham's Rating/Recommendation Summary

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MOT Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at MOT through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 1.25x and 0.65x respectively.

Utilizing this range we can see that MOT’s current Price to Sales per share ratio of 0.67x is significantly below its average levels historically. In fact, with a current price of $6.40, MOT is a full 30% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for MOT.

MOT Cash Earnings

When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of MOT, it appears that either the current estimate for Cash Earnings is negative or MOT is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters. Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis MOT receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.

MOT Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.

Peer Comparison

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Motorola, Inc. Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including MOT) 10.98 1.79 » 176.34 3.60 0.43 » 5.75 13.30% 25.25%
*10 year range does not include current year values
P T Telekom Indonesia TLK $18.3 Billion $37.24 15.30 5.01 » 20.67 3.10 1.13 » 5.53 21.39% 35.40%
Magyar Telekom Telecommunications plc MTA $17.5 Billion $16.79 5.69 2.28 » 8.39 2.74 0.68 » 4.04 3.84% 13.00%
BT PLC ADS BT $16.5 Billion $20.27 4.30 1.28 » 8.25 0.51 0.19 » 2.22 -1.81% 47.70%
American Tower Corp. AMT $16.3 Billion $40.67 23.59 0.37 » 830.00 9.55 0.15 » 12.75 17.38% 2.78%
Motorola, Inc. MOT $15.2 Billion $6.57 -1.00 6.24 » 55.03 0.67 0.19 » 1.70 2.18% 11.99%
Turkcell Iletisim Hizmetleri ADS TKC $14.6 Billion $16.55 6.03 0.00 » 14.39 2.11 0.00 » 4.23 25.72% 27.38%
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5:54P, Feb. 08,2010 MOT $6.60 Motorola, Inc.
Fast Money

Fast Money: What is Happening with Motorola, Incorporated Now?

News has broken via the television and viral blogs regarding MOT, so investors should take an interest in learning what was said.

We noticed recently that in comparison to all other stocks we analyze in the news; MOT has received less coverage from the financial media in business television and blogs. At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform.

“… pop for MOTOROLA. 3u7%. > > barons is almost as good as a conviction buy. Key here is some of the parts, MOTOROLA does look cheap on some of the parts. > > …”

11:31A, Feb. 08,2010 MOT $6.67 Motorola, Inc.
Fox Business

Investors Sentiment's Effect on Motorola, Incorporated on Fox Business

Fox Business talked about the sentiment surrounding MOT and the way they are perceived in the marketplace.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, MOT has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like MOT and believes that it will Underperform. At Ockham, we are not advising buying Motorola, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.

“… And MOTOROLA getting a little bit of a barron's bounce. The publication saying they expect that stock to go up 40% this year. …”

10:42A, Feb. 08,2010 MOT $6.59 Motorola, Inc.
Squawk On The Street

Holding MOT Stock? See What Is Being Discussed on Squawk On The Street

Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on MOT from Squawk On The Street.

Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about MOTOROLA, INC.

Learn About RazorWire?
9:38A, Feb. 08,2010 MOT $6.60 Motorola, Inc.
The Opening Bell on Fox Business

The Opening Bell on Fox Business Brings News Related to Motorola, Incorporated

The latest news on The Opening Bell on Fox Business in regards to MOT came through on RazorWire recently.

Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what The Opening Bell on Fox Business said about MOTOROLA, INC.

Learn About RazorWire?
11:49A, Feb. 05,2010 MOT $6.40 Motorola, Inc.
Tech Trader Daily-Barron's

See More News on MOT from Tech Trader Daily-Barron's

The latest news from Tech Trader Daily-Barron's on MOT is available through Ockham's news analytics platform RazorWire.

As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, MOT has been less covered in the news compared to the rest of our universe of stocks. The crowd at The Motley Fool does not like MOT and believes that it will Underperform. At Ockham, we are not advising buying Motorola, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.

“… By contrast, Apple (AAPL) sold about 600,000 iPhones when it launched the device in 2007, the story notes; the MOTOROLA Droid sold 525,000 in the first month, according to ... …”

9:19A, Feb. 05,2010 MOT $6.50 Motorola, Inc.
Tech Trader Daily-Barron's

MOT and Analysts' Opinion Discussed on Tech Trader Daily-Barron's

Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Tech Trader Daily-Barron's.

The crowd at The Motley Fool does not like MOT and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, MOT has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Motorola, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.

“… MOTOROLA (MOT) shares are moving higher this morning after Barclays Capital analyst Jeff Kvaal upped his rating on the stock to Overweight from Equal Weight, while keeping his ... …”

6:48P, Feb. 02,2010 MOT $6.55 Motorola, Inc.
Mad Money

News on MOT From the Pundits on Mad Money

The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Motorola, Incorporated.

The crowd at The Motley Fool does not like MOT and believes that it will Underperform. At Ockham, we are not advising buying Motorola, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, MOT has been less covered in the news compared to the rest of our universe of stocks.

“… caller: my question is on MOTOROLA. I bought it back at nine and was kind of hoping the droid would spur some growthing. > > I don't know. …”

1:52P, Feb. 02,2010 MOT $6.41 Motorola, Inc.
Tech Trader Daily-Barron's

MOT's EPS discussed on Tech Trader Daily-Barron's

MOT's earnings per share was discussed on Tech Trader Daily-Barron's which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Motorola, Incorporated has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Motorola, Incorporated underperforming. As of this week's report, we have an Overvalued valuation on MOT because the price has gotten too high to be justified by the fundamentals.

“… Societe Generale analyst Andy Perkins this morning raised his rating on MOTOROLA (MOT) to Hold from Sell, with a price target of $6. 50, just a hair above the current level. …”

1:52P, Feb. 02,2010 MOT $6.41 Motorola, Inc.
Tech Trader Daily-Barron's

Tech Trader Daily-Barron's Has News on MOT

Motorola, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Tech Trader Daily-Barron's.

When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Motorola, Incorporated has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Motorola, Incorporated underperforming. As of this week's report, we have an Overvalued valuation on MOT because the price has gotten too high to be justified by the fundamentals.

“… “The Droid smart phone has made an encouraging start and has no doubt helped MOTOROLA improve its image,” he writes in a research note. …”

6:22A, Feb. 02,2010 MOT $6.31 Motorola, Inc.
Squawk Box

Squawk Box Discussed the Latest Development of Motorola, Incorporated

The latest news on Squawk Box in regards to MOT came through on RazorWire recently.

The crowd at The Motley Fool does not like MOT and believes that it will Underperform. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, MOT has been less covered in the news compared to the rest of our universe of stocks. At Ockham, we are not advising buying Motorola, Incorporated at the current price level because according to our methodology it is not supported by the fundamentals.

“… Finally, MOTOROLA was upgraded from hold to sell, we have it all the what you way down. That sell is societe generale, and now they have a hold rating. …”

View All Motorola, Inc. Stock News

Key Fundamentals

MOT - Motorola, Incorporated Fundamentals
Price (2/9 3:35PM) $6.54
Volume (2/9 3:35PM) 29.6 Million
Last Close Price $6.57
10 Day Average Volume 69.8 Million
13 Week Price Range $6.04 - $8.94
52 Week Price Range $2.98 - $9.45
LTM Revenue $22.0 Billion
 
Shares Outstanding (12/2009) 2.3 Billion
Market Capitalization $15.2 Billion
Shares Held By Institutions 1.9 Billion
Institutional Holders 750
% Shares Held By Institutions 80.80%
Earnings Per Share (EPS) ($0.02)
P/E Ratio n/a
Book Value Per Share $4.25
 
Gross Margin 33.40%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 1.86
Fiscal Year Ends December

About Motorola, Inc.

Motorola, Incorporated is considered to operate in the Technology sector. They specifically operate in the Communication Equipment business segment contained within the Telecommunications industry.

The Company provides technologies, products and services that make a range of mobile experiences possible.