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HARMONIC INC (HLIT) Stock Fundamental Analysis

NASDAQ:HLIT - Nasdaq - US4131601027 - Common Stock - Currency: USD

8.965  -0.26 (-2.77%)

Fundamental Rating

6

Taking everything into account, HLIT scores 6 out of 10 in our fundamental rating. HLIT was compared to 48 industry peers in the Communications Equipment industry. HLIT scores excellent on profitability, but there are some minor concerns on its financial health. HLIT may be a bit undervalued, certainly considering the very reasonable score on growth This makes HLIT very considerable for value investing!


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

In the past year HLIT was profitable.
In the past year HLIT had a positive cash flow from operations.
HLIT had positive earnings in 4 of the past 5 years.
In the past 5 years HLIT always reported a positive cash flow from operatings.
HLIT Yearly Net Income VS EBIT VS OCF VS FCFHLIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M

1.2 Ratios

HLIT has a better Return On Assets (8.76%) than 85.42% of its industry peers.
The Return On Equity of HLIT (15.38%) is better than 83.33% of its industry peers.
HLIT has a better Return On Invested Capital (12.16%) than 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLIT is significantly below the industry average of 13.64%.
The 3 year average ROIC (7.26%) for HLIT is below the current ROIC(12.16%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.76%
ROE 15.38%
ROIC 12.16%
ROA(3y)6.61%
ROA(5y)3.36%
ROE(3y)12.12%
ROE(5y)5.9%
ROIC(3y)7.26%
ROIC(5y)N/A
HLIT Yearly ROA, ROE, ROICHLIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20 -30

1.3 Margins

HLIT has a Profit Margin of 9.96%. This is amongst the best in the industry. HLIT outperforms 81.25% of its industry peers.
HLIT's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 15.93%, HLIT belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Operating Margin of HLIT has grown nicely.
HLIT has a better Gross Margin (55.40%) than 72.92% of its industry peers.
In the last couple of years the Gross Margin of HLIT has remained more or less at the same level.
Industry RankSector Rank
OM 15.93%
PM (TTM) 9.96%
GM 55.4%
OM growth 3Y52.34%
OM growth 5Y25.49%
PM growth 3Y30.12%
PM growth 5YN/A
GM growth 3Y1.69%
GM growth 5Y-0.62%
HLIT Yearly Profit, Operating, Gross MarginsHLIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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5

2. Health

2.1 Basic Checks

HLIT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for HLIT has been increased compared to 1 year ago.
Compared to 5 years ago, HLIT has more shares outstanding
HLIT has a better debt/assets ratio than last year.
HLIT Yearly Shares OutstandingHLIT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
HLIT Yearly Total Debt VS Total AssetsHLIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

2.2 Solvency

Based on the Altman-Z score of -0.10, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
HLIT has a Altman-Z score of -0.10. This is in the lower half of the industry: HLIT underperforms 68.75% of its industry peers.
The Debt to FCF ratio of HLIT is 1.11, which is an excellent value as it means it would take HLIT, only 1.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HLIT (1.11) is better than 75.00% of its industry peers.
HLIT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
HLIT has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.11
Altman-Z -0.1
ROIC/WACC1.25
WACC9.7%
HLIT Yearly LT Debt VS Equity VS FCFHLIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M

2.3 Liquidity

HLIT has a Current Ratio of 1.99. This is a normal value and indicates that HLIT is financially healthy and should not expect problems in meeting its short term obligations.
HLIT has a Current ratio (1.99) which is in line with its industry peers.
HLIT has a Quick Ratio of 1.58. This is a normal value and indicates that HLIT is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HLIT (1.58) is better than 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.99
Quick Ratio 1.58
HLIT Yearly Current Assets VS Current LiabilitesHLIT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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6

3. Growth

3.1 Past

HLIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 333.33%, which is quite impressive.
The Earnings Per Share has been growing by 23.05% on average over the past years. This is a very strong growth
HLIT shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.14%.
The Revenue has been growing by 10.99% on average over the past years. This is quite good.
EPS 1Y (TTM)333.33%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%12.5%
Revenue 1Y (TTM)24.14%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%-0.51%

3.2 Future

Based on estimates for the next years, HLIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.86% on average per year.
Based on estimates for the next years, HLIT will show a small growth in Revenue. The Revenue will grow by 6.77% on average per year.
EPS Next Y-34.58%
EPS Next 2Y7.87%
EPS Next 3Y16.86%
EPS Next 5YN/A
Revenue Next Year-11.34%
Revenue Next 2Y3.89%
Revenue Next 3Y6.77%
Revenue Next 5YN/A

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
HLIT Yearly Revenue VS EstimatesHLIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M 800M
HLIT Yearly EPS VS EstimatesHLIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1

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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.85, which indicates a very decent valuation of HLIT.
95.83% of the companies in the same industry are more expensive than HLIT, based on the Price/Earnings ratio.
HLIT is valuated cheaply when we compare the Price/Earnings ratio to 27.11, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.75, the valuation of HLIT can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 91.67% of the companies listed in the same industry.
HLIT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.78.
Industry RankSector Rank
PE 9.85
Fwd PE 9.75
HLIT Price Earnings VS Forward Price EarningsHLIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

HLIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLIT is cheaper than 83.33% of the companies in the same industry.
87.50% of the companies in the same industry are more expensive than HLIT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 8.6
EV/EBITDA 8.7
HLIT Per share dataHLIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

The excellent profitability rating of HLIT may justify a higher PE ratio.
A more expensive valuation may be justified as HLIT's earnings are expected to grow with 16.86% in the coming years.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y7.87%
EPS Next 3Y16.86%

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0

5. Dividend

5.1 Amount

HLIT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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HARMONIC INC

NASDAQ:HLIT (8/14/2025, 11:25:01 AM)

8.965

-0.26 (-2.77%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)07-28 2025-07-28/amc
Earnings (Next)10-27 2025-10-27/amc
Inst Owners95.03%
Inst Owner Change-0.3%
Ins Owners1.07%
Ins Owner Change6.26%
Market Cap1.02B
Analysts73.85
Price Target10.27 (14.56%)
Short Float %1.88%
Short Ratio2.06
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)169.78%
Min EPS beat(2)108.72%
Max EPS beat(2)230.84%
EPS beat(4)4
Avg EPS beat(4)94.54%
Min EPS beat(4)18.28%
Max EPS beat(4)230.84%
EPS beat(8)7
Avg EPS beat(8)63.03%
EPS beat(12)10
Avg EPS beat(12)48.15%
EPS beat(16)14
Avg EPS beat(16)59.26%
Revenue beat(2)2
Avg Revenue beat(2)4.02%
Min Revenue beat(2)2.02%
Max Revenue beat(2)6.03%
Revenue beat(4)4
Avg Revenue beat(4)3.9%
Min Revenue beat(4)2.02%
Max Revenue beat(4)6.03%
Revenue beat(8)6
Avg Revenue beat(8)1.51%
Revenue beat(12)8
Avg Revenue beat(12)0.23%
Revenue beat(16)12
Avg Revenue beat(16)1.16%
PT rev (1m)-13.05%
PT rev (3m)-13.05%
EPS NQ rev (1m)-58.72%
EPS NQ rev (3m)-69.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.64%
Revenue NQ rev (1m)-14.5%
Revenue NQ rev (3m)-20.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.25%
Valuation
Industry RankSector Rank
PE 9.85
Fwd PE 9.75
P/S 1.48
P/FCF 8.6
P/OCF 7.87
P/B 2.28
P/tB 4.97
EV/EBITDA 8.7
EPS(TTM)0.91
EY10.15%
EPS(NY)0.92
Fwd EY10.25%
FCF(TTM)1.04
FCFY11.62%
OCF(TTM)1.14
OCFY12.71%
SpS6.08
BVpS3.94
TBVpS1.81
PEG (NY)N/A
PEG (5Y)0.43
Profitability
Industry RankSector Rank
ROA 8.76%
ROE 15.38%
ROCE 17.96%
ROIC 12.16%
ROICexc 15.25%
ROICexgc 30.26%
OM 15.93%
PM (TTM) 9.96%
GM 55.4%
FCFM 17.15%
ROA(3y)6.61%
ROA(5y)3.36%
ROE(3y)12.12%
ROE(5y)5.9%
ROIC(3y)7.26%
ROIC(5y)N/A
ROICexc(3y)8.98%
ROICexc(5y)N/A
ROICexgc(3y)28.66%
ROICexgc(5y)N/A
ROCE(3y)10.73%
ROCE(5y)N/A
ROICexcg growth 3Y15.9%
ROICexcg growth 5Y12.84%
ROICexc growth 3Y44.43%
ROICexc growth 5Y28%
OM growth 3Y52.34%
OM growth 5Y25.49%
PM growth 3Y30.12%
PM growth 5YN/A
GM growth 3Y1.69%
GM growth 5Y-0.62%
F-Score9
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 1.11
Debt/EBITDA 1.01
Cap/Depr 98.06%
Cap/Sales 1.6%
Interest Coverage 15.45
Cash Conversion 106.78%
Profit Quality 172.12%
Current Ratio 1.99
Quick Ratio 1.58
Altman-Z -0.1
F-Score9
WACC9.7%
ROIC/WACC1.25
Cap/Depr(3y)73.43%
Cap/Depr(5y)104.94%
Cap/Sales(3y)1.41%
Cap/Sales(5y)3.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)333.33%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%12.5%
EPS Next Y-34.58%
EPS Next 2Y7.87%
EPS Next 3Y16.86%
EPS Next 5YN/A
Revenue 1Y (TTM)24.14%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%-0.51%
Revenue Next Year-11.34%
Revenue Next 2Y3.89%
Revenue Next 3Y6.77%
Revenue Next 5YN/A
EBIT growth 1Y8829.46%
EBIT growth 3Y67.89%
EBIT growth 5Y39.29%
EBIT Next Year-37.96%
EBIT Next 3Y22.26%
EBIT Next 5YN/A
FCF growth 1Y1866.17%
FCF growth 3Y23.43%
FCF growth 5Y20.25%
OCF growth 1Y14412.2%
OCF growth 3Y14.71%
OCF growth 5Y14.62%