HARMONIC INC (HLIT) Stock Fundamental Analysis
USA - NASDAQ:HLIT - US4131601027 - Common Stock
10.29 USD
+0.09 (+0.88%)
10.29 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HLIT. 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 With these ratings, HLIT could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
HLIT had positive earnings in the past year.
HLIT had a positive operating cash flow in the past year.
Of the past 5 years HLIT 4 years were profitable.
Each year in the past 5 years HLIT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.76%, HLIT belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.38%, HLIT belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.16%, HLIT belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HLIT is significantly below the industry average of 13.08%.
The 3 year average ROIC (7.26%) for HLIT is below the current ROIC(12.16%), indicating increased profibility in the last year.
| Industry Rank | Sector 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
1.3 Margins
HLIT has a Profit Margin of 9.96%. This is in the better half of the industry: HLIT outperforms 79.17% 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 85.42% of the companies in the same industry.
HLIT's Operating Margin has improved in the last couple of years.
HLIT's Gross Margin of 55.40% is fine compared to the rest of the industry. HLIT outperforms 75.00% 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HLIT is creating some value.
Compared to 1 year ago, HLIT has more shares outstanding
The number of shares outstanding for HLIT has been increased compared to 5 years ago.
Compared to 1 year ago, HLIT has an improved debt to assets ratio.
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's Altman-Z score of 0.10 is on the low side compared to the rest of the industry. HLIT is outperformed by 68.75% of its industry peers.
HLIT has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
The Debt to FCF ratio of HLIT (1.11) is better than 72.92% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that HLIT is not too dependend on debt financing.
HLIT's Debt to Equity ratio of 0.27 is on the low side compared to the rest of the industry. HLIT is outperformed by 62.50% of its industry peers.
Even though the debt/equity ratio score it not favorable for HLIT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 0.1 |
ROIC/WACC1.36
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.99 indicates that HLIT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.99, HLIT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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.
HLIT has a Quick ratio (1.58) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.58 |
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.
HLIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.05% yearly.
HLIT shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.14%.
Measured over the past years, HLIT shows a quite strong growth in Revenue. The Revenue has been growing by 10.99% on average per year.
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 12.91% on average per year.
HLIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y-49.69%
EPS Next 2Y-0.83%
EPS Next 3Y12.91%
EPS Next 5YN/A
Revenue Next Year-17.85%
Revenue Next 2Y1.42%
Revenue Next 3Y4.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.31, the valuation of HLIT can be described as reasonable.
Based on the Price/Earnings ratio, HLIT is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.42, HLIT is valued rather cheaply.
A Price/Forward Earnings ratio of 13.24 indicates a correct valuation of HLIT.
85.42% of the companies in the same industry are more expensive than HLIT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, HLIT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 83.33% of the companies listed in the same industry.
91.67% of the companies in the same industry are more expensive than HLIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.91 | ||
| EV/EBITDA | 9.65 |
4.3 Compensation for Growth
The excellent profitability rating of HLIT may justify a higher PE ratio.
HLIT's earnings are expected to grow with 12.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.49
EPS Next 2Y-0.83%
EPS Next 3Y12.91%
5. Dividend
5.1 Amount
No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.29
+0.09 (+0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change0.63%
Ins Owners1.12%
Ins Owner Change3.54%
Market Cap1.17B
Analysts73.85
Price Target10.27 (-0.19%)
Short Float %2.1%
Short Ratio2.22
Dividend
| Industry Rank | Sector 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)0%
PT rev (3m)-7.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-65.13%
EPS NY rev (1m)-2.5%
EPS NY rev (3m)-23.09%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-14.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.31 | ||
| Fwd PE | 13.24 | ||
| P/S | 1.7 | ||
| P/FCF | 9.91 | ||
| P/OCF | 9.06 | ||
| P/B | 2.62 | ||
| P/tB | 5.72 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)0.91
EY8.84%
EPS(NY)0.78
Fwd EY7.55%
FCF(TTM)1.04
FCFY10.09%
OCF(TTM)1.14
OCFY11.03%
SpS6.06
BVpS3.92
TBVpS1.8
PEG (NY)N/A
PEG (5Y)0.49
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.91%
ROIC/WACC1.36
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-49.69%
EPS Next 2Y-0.83%
EPS Next 3Y12.91%
EPS Next 5YN/A
Revenue 1Y (TTM)24.14%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%-0.51%
Revenue Next Year-17.85%
Revenue Next 2Y1.42%
Revenue Next 3Y4.33%
Revenue Next 5YN/A
EBIT growth 1Y8829.46%
EBIT growth 3Y67.89%
EBIT growth 5Y39.29%
EBIT Next Year-40.49%
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%