10.02 USD
+0.13 (+1.31%)
9.8222 USD
-0.2 (-1.97%)
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. While HLIT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HLIT has a correct valuation and a medium 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.
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.
1.2 Ratios
HLIT has a better Return On Assets (6.54%) than 79.17% of its industry peers.
HLIT has a better Return On Equity (11.20%) than 77.08% of its industry peers.
HLIT's Return On Invested Capital of 9.21% is fine compared to the rest of the industry. HLIT outperforms 77.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLIT is below the industry average of 12.15%.
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 has a better Profit Margin (7.81%) than 77.08% of its industry peers.
HLIT's Profit Margin has improved in the last couple of years.
The Operating Margin of HLIT (12.87%) is better than 79.17% of its industry peers.
In the last couple of years the Operating Margin of HLIT has grown nicely.
HLIT has a Gross Margin of 55.71%. This is in the better half of the industry: HLIT outperforms 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 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) below the Cost of Capital (WACC), HLIT is destroying 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
The debt/assets ratio for HLIT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.13, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of HLIT (-0.13) is worse than 64.58% of its industry peers.
HLIT has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
HLIT has a better Debt to FCF ratio (0.95) than 77.08% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that HLIT is not too dependend on debt financing.
HLIT has a worse Debt to Equity ratio (0.27) than 60.42% 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 | 0.95 | ||
| Altman-Z | -0.13 |
ROIC/WACC0.97
WACC9.51%
2.3 Liquidity
A Current Ratio of 2.08 indicates that HLIT has no problem at all paying its short term obligations.
The Current ratio of HLIT (2.08) is comparable to the rest of the industry.
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.
HLIT has a Quick ratio (1.64) which 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
The Earnings Per Share has grown by an impressive 63.83% over the past year.
The Earnings Per Share has been growing by 23.05% on average over the past years. This is a very strong growth
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
Based on estimates for the next years, HLIT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.53% on average per year.
The Revenue is expected to grow by 4.72% on average over the next years.
EPS Next Y-44.65%
EPS Next 2Y-2.89%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year-17.27%
Revenue Next 2Y0.37%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 13.01, which indicates a correct valuation of HLIT.
HLIT's Price/Earnings ratio is rather cheap when compared to the industry. HLIT is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. HLIT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.45 indicates a correct valuation of HLIT.
83.33% 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 23.23, HLIT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLIT is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
HLIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLIT is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.43 | ||
| EV/EBITDA | 11.92 |
4.3 Compensation for Growth
The decent profitability rating of HLIT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-2.89%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.02
+0.13 (+1.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.51%
Inst Owner Change-3.13%
Ins Owners1.16%
Ins Owner Change2.5%
Market Cap1.12B
Revenue(TTM)635.71M
Net Income(TTM)49.63M
Analysts73.85
Price Target12.02 (19.96%)
Short Float %2.02%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)17.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.98%
EPS NY rev (1m)10.01%
EPS NY rev (3m)10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 13.45 | ||
| P/S | 1.77 | ||
| P/FCF | 8.43 | ||
| P/OCF | 7.8 | ||
| P/B | 2.54 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)0.77
EY7.68%
EPS(NY)0.74
Fwd EY7.43%
FCF(TTM)1.19
FCFY11.87%
OCF(TTM)1.28
OCFY12.82%
SpS5.66
BVpS3.95
TBVpS1.79
PEG (NY)N/A
PEG (5Y)0.56
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 | -0.13 |
F-Score8
WACC9.51%
ROIC/WACC0.97
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-44.65%
EPS Next 2Y-2.89%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue 1Y (TTM)1.93%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%-27.26%
Revenue Next Year-17.27%
Revenue Next 2Y0.37%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
EBIT growth 1Y73.26%
EBIT growth 3Y67.89%
EBIT growth 5Y39.29%
EBIT Next Year-32%
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.
Can you provide the valuation status for HARMONIC INC?
ChartMill assigns a valuation rating of 6 / 10 to HARMONIC INC (HLIT). This can be considered as Fairly Valued.
How profitable is HARMONIC INC (HLIT) stock?
HARMONIC INC (HLIT) has a profitability rating of 7 / 10.
How financially healthy is HARMONIC INC?
The financial health rating of HARMONIC INC (HLIT) is 5 / 10.
What is the expected EPS growth for HARMONIC INC (HLIT) stock?
The Earnings per Share (EPS) of HARMONIC INC (HLIT) is expected to decline by -44.65% in the next year.