HARMONIC INC (HLIT)
US4131601027 - Common Stock
HLIT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 industry peers in the Communications Equipment industry. There are concerns on the financial health of HLIT while its profitability can be described as average. HLIT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HLIT was profitable.
HLIT had a positive operating cash flow in the past year.
In multiple years HLIT reported negative net income over the last 5 years.
Each year in the past 5 years HLIT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of HLIT (10.94%) is better than 90.74% of its industry peers.
HLIT has a better Return On Equity (19.24%) than 90.74% of its industry peers.
The Return On Invested Capital of HLIT (3.03%) is better than 64.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLIT is significantly below the industry average of 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.94% | ||
| ROE | 19.24% | ||
| ROIC | 3.03% |
ROA(3y)5.61%
ROA(5y)2.17%
ROE(3y)10.8%
ROE(5y)3.75%
ROIC(3y)4.58%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.82%, HLIT belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With a decent Operating Margin value of 3.90%, HLIT is doing good in the industry, outperforming 61.11% of the companies in the same industry.
With a decent Gross Margin value of 51.53%, HLIT is doing good in the industry, outperforming 77.78% of the companies in the same industry.
HLIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.9% | ||
| PM (TTM) | 13.82% | ||
| GM | 51.53% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.16%
GM growth 5Y-0.2%
2. Health
2.1 Basic Checks
HLIT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HLIT has been increased compared to 1 year ago.
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
HLIT has an Altman-Z score of -0.42. This is a bad value and indicates that HLIT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HLIT (-0.42) is worse than 70.37% of its industry peers.
HLIT has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
HLIT has a better Debt to Equity ratio (0.02) than 68.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.42 |
ROIC/WACC0.33
WACC9.18%
2.3 Liquidity
HLIT has a Current Ratio of 1.21. 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 of 1.21. This is in the lower half of the industry: HLIT underperforms 79.63% of its industry peers.
A Quick Ratio of 0.91 indicates that HLIT may have some problems paying its short term obligations.
The Quick ratio of HLIT (0.91) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for HLIT have decreased strongly by -31.48% in the last year.
HLIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.26% yearly.
The Revenue has decreased by -2.71% in the past year.
Measured over the past years, HLIT shows a quite strong growth in Revenue. The Revenue has been growing by 8.54% on average per year.
EPS 1Y (TTM)-31.48%
EPS 3Y74.19%
EPS 5Y14.26%
EPS growth Q2Q-23.53%
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y17.08%
Revenue growth 5Y8.54%
Revenue growth Q2Q1.7%
3.2 Future
HLIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.69% yearly.
The Revenue is expected to grow by 18.69% on average over the next years. This is quite good.
EPS Next Y57.55%
EPS Next 2Y65.69%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.94%
Revenue Next 2Y18.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.97 indicates a quite expensive valuation of HLIT.
HLIT's Price/Earnings is on the same level as the industry average.
HLIT is valuated rather expensively when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.02 indicates a rather expensive valuation of HLIT.
The rest of the industry has a similar Price/Forward Earnings ratio as HLIT.
HLIT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.97 | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
HLIT's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 34.7 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent 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 65.69% in the coming years.
PEG (NY)0.52
PEG (5Y)2.1
EPS Next 2Y65.69%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HARMONIC INC
NASDAQ:HLIT (5/1/2024, 3:30:01 PM)
After market: 11.09 0 (0%)11.09
+0.35 (+3.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.97 | ||
| Fwd PE | 19.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.94% | ||
| ROE | 19.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.9% | ||
| PM (TTM) | 13.82% | ||
| GM | 51.53% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-31.48%
EPS 3Y74.19%
EPS 5Y
EPS growth Q2Q
EPS Next Y57.55%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.71%
Revenue growth 3Y17.08%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y