9.76 USD
+0.09 (+0.93%)
9.76 USD
0 (0%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. HLIT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make HLIT a good candidate for value investing.
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.
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
HLIT's Return On Assets of 6.54% is fine compared to the rest of the industry. HLIT outperforms 79.17% of its industry peers.
HLIT has a Return On Equity of 11.20%. This is in the better half of the industry: HLIT outperforms 77.08% of its industry peers.
The Return On Invested Capital of HLIT (9.21%) is better than 75.00% of its industry peers.
HLIT had an Average Return On Invested Capital over the past 3 years of 7.26%. This is significantly below the industry average of 12.32%.
The last Return On Invested Capital (9.21%) for HLIT is above the 3 year average (7.26%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 11.2% | ||
| ROIC | 9.21% |
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's Profit Margin of 7.81% is fine compared to the rest of the industry. HLIT outperforms 77.08% of its industry peers.
In the last couple of years the Profit Margin of HLIT has grown nicely.
HLIT's Operating Margin of 12.87% is fine compared to the rest of the industry. HLIT outperforms 79.17% of its industry peers.
HLIT's Operating Margin has improved in the last couple of years.
HLIT's Gross Margin of 55.71% 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 | 12.87% | ||
| PM (TTM) | 7.81% | ||
| GM | 55.71% |
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.
The number of shares outstanding for HLIT has been increased compared to 1 year ago.
HLIT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HLIT has been reduced compared to a year ago.
2.2 Solvency
HLIT has an Altman-Z score of -0.18. This is a bad value and indicates that HLIT is not financially healthy and even has some risk of bankruptcy.
HLIT has a worse Altman-Z score (-0.18) than 66.67% of its industry peers.
The Debt to FCF ratio of HLIT is 0.95, which is an excellent value as it means it would take HLIT, only 0.95 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.95, HLIT is doing good in the industry, outperforming 77.08% of the companies in the same industry.
HLIT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, HLIT is doing worse than 60.42% of the companies in the same industry.
Although HLIT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | -0.18 |
ROIC/WACC1.03
WACC8.93%
2.3 Liquidity
A Current Ratio of 2.08 indicates that HLIT has no problem at all paying its short term obligations.
HLIT has a Current ratio (2.08) which is in line with its industry peers.
HLIT has a Quick Ratio of 1.64. 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 (1.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
HLIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.83%, 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.
The Revenue has been growing slightly by 1.93% in the past year.
HLIT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.99% yearly.
EPS 1Y (TTM)63.83%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%-53.85%
Revenue 1Y (TTM)1.93%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%-27.26%
3.2 Future
The Earnings Per Share is expected to grow by 12.91% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.33% on average over the next years.
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
With a Price/Earnings ratio of 12.68, HLIT is valued correctly.
Based on the Price/Earnings ratio, HLIT is valued cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of HLIT to the average of the S&P500 Index (26.15), we can say HLIT is valued rather cheaply.
The Price/Forward Earnings ratio is 12.56, which indicates a correct valuation of HLIT.
Based on the Price/Forward Earnings ratio, HLIT is valued cheaper than 89.58% of the companies 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 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 12.56 |
4.2 Price Multiples
HLIT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HLIT is cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLIT is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.21 | ||
| EV/EBITDA | 11.66 |
4.3 Compensation for Growth
HLIT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HLIT's earnings are expected to grow with 12.91% in the coming years.
PEG (NY)N/A
PEG (5Y)0.55
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 |
9.76
+0.09 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change-3.13%
Ins Owners1.12%
Ins Owner Change3.5%
Market Cap1.10B
Revenue(TTM)635.71M
Net Income(TTM)49.63M
Analysts73.85
Price Target12.02 (23.16%)
Short Float %1.71%
Short Ratio2.2
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)195.19%
Min EPS beat(2)159.54%
Max EPS beat(2)230.84%
EPS beat(4)4
Avg EPS beat(4)129.85%
Min EPS beat(4)20.32%
Max EPS beat(4)230.84%
EPS beat(8)8
Avg EPS beat(8)95.47%
EPS beat(12)10
Avg EPS beat(12)59.51%
EPS beat(16)14
Avg EPS beat(16)58.07%
Revenue beat(2)2
Avg Revenue beat(2)7.26%
Min Revenue beat(2)6.03%
Max Revenue beat(2)8.49%
Revenue beat(4)4
Avg Revenue beat(4)4.65%
Min Revenue beat(4)2.02%
Max Revenue beat(4)8.49%
Revenue beat(8)7
Avg Revenue beat(8)3.34%
Revenue beat(12)8
Avg Revenue beat(12)0.92%
Revenue beat(16)12
Avg Revenue beat(16)1.41%
PT rev (1m)17.02%
PT rev (3m)17.02%
EPS NQ rev (1m)-27.98%
EPS NQ rev (3m)-27.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)-6.15%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.68 | ||
| Fwd PE | 12.56 | ||
| P/S | 1.72 | ||
| P/FCF | 8.21 | ||
| P/OCF | 7.6 | ||
| P/B | 2.47 | ||
| P/tB | 5.44 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)0.77
EY7.89%
EPS(NY)0.78
Fwd EY7.96%
FCF(TTM)1.19
FCFY12.18%
OCF(TTM)1.28
OCFY13.17%
SpS5.66
BVpS3.95
TBVpS1.79
PEG (NY)N/A
PEG (5Y)0.55
Graham Number8.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.54% | ||
| ROE | 11.2% | ||
| ROCE | 13.61% | ||
| ROIC | 9.21% | ||
| ROICexc | 11.69% | ||
| ROICexgc | 23.84% | ||
| OM | 12.87% | ||
| PM (TTM) | 7.81% | ||
| GM | 55.71% | ||
| FCFM | 20.99% |
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
ROICexgc growth 3Y15.9%
ROICexgc 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-Score8
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.95 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 96.13% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 16.99 | ||
| Cash Conversion | 155.02% | ||
| Profit Quality | 268.94% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | -0.18 |
F-Score8
WACC8.93%
ROIC/WACC1.03
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)63.83%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%-53.85%
EPS Next Y-49.69%
EPS Next 2Y-0.83%
EPS Next 3Y12.91%
EPS Next 5YN/A
Revenue 1Y (TTM)1.93%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%-27.26%
Revenue Next Year-17.85%
Revenue Next 2Y1.42%
Revenue Next 3Y4.33%
Revenue Next 5YN/A
EBIT growth 1Y73.26%
EBIT growth 3Y67.89%
EBIT growth 5Y39.29%
EBIT Next Year-40.49%
EBIT Next 3Y22.26%
EBIT Next 5YN/A
FCF growth 1Y964.27%
FCF growth 3Y23.43%
FCF growth 5Y20.25%
OCF growth 1Y615.68%
OCF growth 3Y14.71%
OCF growth 5Y14.62%
HARMONIC INC / HLIT FAQ
Can you provide the ChartMill fundamental rating for HARMONIC INC?
ChartMill assigns a fundamental rating of 6 / 10 to HLIT.
What is the valuation status for HLIT stock?
ChartMill assigns a valuation rating of 7 / 10 to HARMONIC INC (HLIT). This can be considered as Undervalued.
How profitable is HARMONIC INC (HLIT) stock?
HARMONIC INC (HLIT) has a profitability rating of 7 / 10.
What is the financial health of HARMONIC INC (HLIT) stock?
The financial health rating of HARMONIC INC (HLIT) is 5 / 10.
Can you provide the expected EPS growth for HLIT stock?
The Earnings per Share (EPS) of HARMONIC INC (HLIT) is expected to decline by -49.69% in the next year.