HARMONIC INC (HLIT) Stock Fundamental Analysis
USA - NASDAQ:HLIT - US4131601027 - Common Stock
10.065 USD
+0.16 (+1.67%)
10.065 USD
0 (0%)
HLIT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 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.
In the past year HLIT had a positive cash flow from operations.
HLIT had positive earnings in 4 of the past 5 years.
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.
HLIT's Return On Equity of 15.38% is amongst the best of the industry. HLIT outperforms 83.33% of its industry peers.
HLIT has a better Return On Invested Capital (12.16%) than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLIT is significantly below the industry average of 13.71%.
The last Return On Invested Capital (12.16%) for HLIT is above the 3 year average (7.26%), which is a sign of increasing profitability.
| 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
The Profit Margin of HLIT (9.96%) is better than 81.25% of its industry peers.
HLIT's Profit Margin has improved in the last couple of years.
HLIT has a better Operating Margin (15.93%) than 87.50% of its industry peers.
HLIT's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 55.40%, HLIT is doing good in the industry, outperforming 75.00% 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 | 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
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.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.08, HLIT is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
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.
With a decent Debt to FCF ratio value of 1.11, HLIT is doing good in the industry, outperforming 72.92% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that HLIT is not too dependend on debt financing.
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 | 1.11 | ||
| Altman-Z | 0.08 |
ROIC/WACC1.27
WACC9.58%
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.
HLIT has a Quick ratio of 1.58. This is comparable to the rest of the industry: HLIT outperforms 58.33% of its industry peers.
| 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.
Measured over the past years, HLIT shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.05% on average per year.
Looking at the last year, HLIT shows a very strong growth in Revenue. 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 12.91% on average per year.
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
The Price/Earnings ratio is 11.06, which indicates a very decent valuation of HLIT.
Compared to the rest of the industry, the Price/Earnings ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, HLIT is valued rather cheaply.
The Price/Forward Earnings ratio is 12.96, which indicates a correct valuation of HLIT.
HLIT's Price/Forward Earnings ratio is rather cheap when compared to the industry. HLIT is cheaper than 83.33% of the companies in the same industry.
HLIT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
HLIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLIT is cheaper than 81.25% of the companies in the same industry.
HLIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLIT is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.69 | ||
| EV/EBITDA | 9.52 |
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 12.91% in the coming years.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-0.83%
EPS Next 3Y12.91%
5. Dividend
5.1 Amount
HLIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.065
+0.16 (+1.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change-3.2%
Ins Owners1.12%
Ins Owner Change3.54%
Market Cap1.14B
Analysts73.85
Price Target10.27 (2.04%)
Short Float %2.23%
Short Ratio2.04
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)-13.05%
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%
Revenue NQ rev (3m)-16.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 12.96 | ||
| P/S | 1.66 | ||
| P/FCF | 9.69 | ||
| P/OCF | 8.87 | ||
| P/B | 2.56 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 9.52 |
EPS(TTM)0.91
EY9.04%
EPS(NY)0.78
Fwd EY7.72%
FCF(TTM)1.04
FCFY10.32%
OCF(TTM)1.14
OCFY11.28%
SpS6.06
BVpS3.92
TBVpS1.8
PEG (NY)N/A
PEG (5Y)0.48
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 | 0.08 |
F-Score9
WACC9.58%
ROIC/WACC1.27
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%