Aristotle Value Equity Fund on Motorola Solutions
Thesis
Motorola Solutions provides mission-critical communications and security systems, anchored by a land-mobile-radio franchise deeply embedded in public-safety agencies. Aristotle believes reliability requirements, long-term service agreements, predictable refresh cycles and decades of customer trust create a durable competitive position. The company is expanding the installed base into video security, body cameras, command-center software and secure wireless communications, while a growing mix of higher-margin software and recurring services should improve profitability and free cash flow.
“We believe these opportunities, together with a continued shift toward higher-margin software and recurring services, should support improved profitability and FREE cash flow generation over our three- to five-year investment horizon.”
Key risks
- Higher memory costs
- Supply-chain costs