HARMONIC INC (HLIT) Stock Fundamental Analysis
NASDAQ:HLIT - Nasdaq - US4131601027 - Common Stock - Currency: USD
Overall HLIT gets a fundamental rating of 6 out of 10. We evaluated HLIT against 49 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make HLIT a good candidate 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.
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
The Return On Assets of HLIT (6.88%) is better than 81.63% of its industry peers.
Looking at the Return On Equity, with a value of 11.94%, HLIT belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.06%, HLIT belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
HLIT had an Average Return On Invested Capital over the past 3 years of 7.26%. This is significantly below the industry average of 13.73%.
The 3 year average ROIC (7.26%) for HLIT is below the current ROIC(12.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 11.94% | ||
| ROIC | 12.06% |
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 7.72% is fine compared to the rest of the industry. HLIT outperforms 79.59% of its industry peers.
In the last couple of years the Profit Margin of HLIT has grown nicely.
The Operating Margin of HLIT (15.72%) is better than 87.76% of its industry peers.
In the last couple of years the Operating Margin of HLIT has grown nicely.
Looking at the Gross Margin, with a value of 55.29%, HLIT is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
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 | 15.72% | ||
| PM (TTM) | 7.72% | ||
| GM | 55.29% |
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.
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
Based on the Altman-Z score of -0.05, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.05, HLIT is doing worse than 67.35% of the companies in the same industry.
HLIT has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
The Debt to FCF ratio of HLIT (1.17) is better than 71.43% of its industry peers.
HLIT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
HLIT has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | -0.05 |
ROIC/WACC1.23
WACC9.84%
2.3 Liquidity
HLIT has a Current Ratio of 2.06. This indicates that HLIT is financially healthy and has no problem in meeting its short term obligations.
HLIT has a Current ratio (2.06) which is comparable to the rest of the industry.
A Quick Ratio of 1.69 indicates that HLIT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.69, HLIT is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
HLIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 260.00%, 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.
HLIT shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.52%.
Measured over the past years, HLIT shows a quite strong growth in Revenue. The Revenue has been growing by 10.99% on average per year.
EPS 1Y (TTM)260%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%170.56%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%9.07%
3.2 Future
The Earnings Per Share is expected to grow by 16.86% on average over the next years. This is quite good.
HLIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.77% yearly.
EPS Next Y-34.58%
EPS Next 2Y7.87%
EPS Next 3Y16.86%
EPS Next 5YN/A
Revenue Next Year-10.22%
Revenue Next 2Y4.5%
Revenue Next 3Y6.77%
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.
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 reasonably with a Price/Earnings ratio of 9.97.
HLIT's Price/Earnings ratio is rather cheap when compared to the industry. HLIT is cheaper than 89.80% of the companies in the same industry.
HLIT is valuated cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.76 indicates a reasonable valuation of HLIT.
Based on the Price/Forward Earnings ratio, HLIT is valued cheaply inside the industry as 89.80% of the companies are valued more expensively.
HLIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLIT is valued cheaper than 81.63% of the companies in the same industry.
87.76% of the companies in the same industry are more expensive than HLIT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.39 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
HLIT has an outstanding profitability rating, which may justify a higher PE ratio.
HLIT's earnings are expected to grow with 16.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y7.87%
EPS Next 3Y16.86%
5. Dividend
5.1 Amount
HLIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:HLIT (5/23/2025, 2:34:48 PM)
8.975
-0.12 (-1.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners96.9%
Inst Owner Change-4.65%
Ins Owners1.77%
Ins Owner Change4.06%
Market Cap1.03B
Analysts78.33
Price Target11.82 (31.7%)
Short Float %2.52%
Short Ratio2.44
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)64.52%
Min EPS beat(2)20.32%
Max EPS beat(2)108.72%
EPS beat(4)4
Avg EPS beat(4)62.11%
Min EPS beat(4)18.28%
Max EPS beat(4)108.72%
EPS beat(8)6
Avg EPS beat(8)32.65%
EPS beat(12)10
Avg EPS beat(12)34.97%
EPS beat(16)14
Avg EPS beat(16)265.33%
Revenue beat(2)2
Avg Revenue beat(2)2.04%
Min Revenue beat(2)2.02%
Max Revenue beat(2)2.05%
Revenue beat(4)4
Avg Revenue beat(4)2.84%
Min Revenue beat(4)1.76%
Max Revenue beat(4)5.51%
Revenue beat(8)5
Avg Revenue beat(8)-0.32%
Revenue beat(12)8
Avg Revenue beat(12)-0.04%
Revenue beat(16)12
Avg Revenue beat(16)0.99%
PT rev (1m)-1.42%
PT rev (3m)-21.47%
EPS NQ rev (1m)-69.23%
EPS NQ rev (3m)-74.19%
EPS NY rev (1m)-12.64%
EPS NY rev (3m)-18.93%
Revenue NQ rev (1m)-6.28%
Revenue NQ rev (3m)-11.01%
Revenue NY rev (1m)-2.9%
Revenue NY rev (3m)-17.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 9.76 | ||
| P/S | 1.49 | ||
| P/FCF | 9.39 | ||
| P/OCF | 8.67 | ||
| P/B | 2.31 | ||
| P/tB | 4.95 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)0.9
EY10.03%
EPS(NY)0.92
Fwd EY10.24%
FCF(TTM)0.96
FCFY10.64%
OCF(TTM)1.04
OCFY11.53%
SpS6.01
BVpS3.89
TBVpS1.81
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 11.94% | ||
| ROCE | 17.82% | ||
| ROIC | 12.06% | ||
| ROICexc | 15.96% | ||
| ROICexgc | 33.12% | ||
| OM | 15.72% | ||
| PM (TTM) | 7.72% | ||
| GM | 55.29% | ||
| FCFM | 15.88% |
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-Score7
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 77.69% | ||
| Cap/Sales | 1.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.74% | ||
| Profit Quality | 205.75% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | -0.05 |
F-Score7
WACC9.84%
ROIC/WACC1.23
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)260%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%170.56%
EPS Next Y-34.58%
EPS Next 2Y7.87%
EPS Next 3Y16.86%
EPS Next 5YN/A
Revenue 1Y (TTM)20.52%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%9.07%
Revenue Next Year-10.22%
Revenue Next 2Y4.5%
Revenue Next 3Y6.77%
Revenue Next 5YN/A
EBIT growth 1Y1600.45%
EBIT growth 3Y67.89%
EBIT growth 5Y39.29%
EBIT Next Year1.28%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y264.09%
FCF growth 3Y23.43%
FCF growth 5Y20.25%
OCF growth 1Y202.58%
OCF growth 3Y14.71%
OCF growth 5Y14.62%