HARMONIC INC (HLIT) Stock Fundamental Analysis
USA - NASDAQ:HLIT - US4131601027 - Common Stock
10.345 USD
+0.12 (+1.12%)
Overall HLIT gets a fundamental rating of 6 out of 10. We evaluated HLIT against 48 industry peers in the Communications Equipment industry. While HLIT has a great profitability rating, there are some minor concerns on its financial health. 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.
In the past year HLIT had a positive cash flow from operations.
Of the past 5 years HLIT 4 years were profitable.
In the past 5 years HLIT always reported a positive cash flow from operatings.
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.
Looking at the Return On Equity, with a value of 11.20%, HLIT is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
HLIT has a better Return On Invested Capital (9.21%) 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 13.05%.
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 Profit Margin of 7.81%. This is in the better half 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.
The Gross Margin of HLIT (55.71%) is better than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HLIT is still creating some value.
HLIT has more shares outstanding than it did 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
Based on the Altman-Z score of -0.03, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
HLIT's Altman-Z score of -0.03 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 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 75.00% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that HLIT is not too dependend on debt financing.
HLIT has a Debt to Equity ratio of 0.27. This is in the lower half of the industry: HLIT underperforms 60.42% of its industry peers.
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 | -0.03 |
ROIC/WACC1.03
WACC8.94%
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 of 1.64. This is comparable to the rest of the industry: HLIT outperforms 56.25% of its industry peers.
| 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.
HLIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.05% yearly.
Looking at the last year, HLIT shows a small growth in Revenue. The Revenue has grown by 1.93% in the last 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 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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HLIT is valuated correctly with a Price/Earnings ratio of 13.44.
Compared to the rest of the industry, the Price/Earnings ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 85.42% of the companies listed in the same industry.
HLIT is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
HLIT is valuated correctly with a Price/Forward Earnings ratio of 13.32.
87.50% of the companies in the same industry are more expensive than HLIT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HLIT to the average of the S&P500 Index (33.72), we can say HLIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 13.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLIT indicates a somewhat cheap valuation: HLIT is cheaper than 75.00% of the companies listed 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 | 8.82 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
HLIT has a very decent profitability rating, which 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)0.58
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 |
NASDAQ:HLIT (11/12/2025, 2:42:04 PM)
10.345
+0.12 (+1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change0.42%
Ins Owners1.12%
Ins Owner Change3.54%
Market Cap1.18B
Revenue(TTM)635.71M
Net Income(TTM)49.63M
Analysts73.85
Price Target10.71 (3.53%)
Short Float %2.01%
Short Ratio2.58
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)4.26%
PT rev (3m)4.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.09%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.44 | ||
| Fwd PE | 13.32 | ||
| P/S | 1.85 | ||
| P/FCF | 8.82 | ||
| P/OCF | 8.16 | ||
| P/B | 2.66 | ||
| P/tB | 5.85 | ||
| EV/EBITDA | 12.5 |
EPS(TTM)0.77
EY7.44%
EPS(NY)0.78
Fwd EY7.51%
FCF(TTM)1.17
FCFY11.34%
OCF(TTM)1.27
OCFY12.25%
SpS5.59
BVpS3.89
TBVpS1.77
PEG (NY)N/A
PEG (5Y)0.58
Graham Number8.21
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 | -0.03 |
F-Score8
WACC8.94%
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 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.
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.