HARMONIC INC (HLIT) Stock Fundamental Analysis
NASDAQ:HLIT - US4131601027 - Common Stock
10.04 USD
+0.12 (+1.21%)
10.07 USD
+0.03 (+0.3%)
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 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! This makes HLIT very considerable for value investing!
1. Profitability
1.1 Basic Checks
HLIT had positive earnings in the past year.
HLIT had a positive operating cash flow in the past year.
Of the past 5 years HLIT 4 years were profitable.
HLIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLIT has a Return On Assets of 8.76%. This is amongst the best in the industry. HLIT outperforms 85.42% of its industry peers.
HLIT has a Return On Equity of 15.38%. This is amongst the best in the industry. HLIT outperforms 83.33% of its industry peers.
The Return On Invested Capital of HLIT (12.16%) is better 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 13.68%.
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
HLIT has a Profit Margin of 9.96%. This is amongst the best in the industry. HLIT outperforms 81.25% of its industry peers.
HLIT's Profit Margin has improved in the last couple of years.
HLIT has a Operating Margin of 15.93%. This is amongst the best in the industry. HLIT outperforms 87.50% of its industry peers.
HLIT's Operating Margin has improved in the last couple of years.
The Gross Margin of HLIT (55.40%) 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HLIT is still creating some value.
Compared to 1 year ago, HLIT has more shares outstanding
Compared to 5 years ago, HLIT has more shares outstanding
Compared to 1 year ago, HLIT has an improved debt to assets ratio.
2.2 Solvency
HLIT has an Altman-Z score of 0.05. This is a bad value and indicates that HLIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.05, 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.
Looking at the Debt to FCF ratio, with a value of 1.11, HLIT is in the better half of 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.
The Debt to Equity ratio of HLIT (0.27) is worse than 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 | 1.11 | ||
| Altman-Z | 0.05 |
ROIC/WACC1.28
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.99 indicates that HLIT should not have too much problems paying 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's Quick ratio of 1.58 is in line compared 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
The Earnings Per Share has grown by an impressive 333.33% 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 very strong growth in Revenue. The Revenue has grown by 24.14%.
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)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.
Based on estimates for the next years, HLIT will show a small growth in Revenue. The Revenue will grow by 4.33% on average per year.
EPS Next Y-48.4%
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
Based on the Price/Earnings ratio of 11.03, the valuation of HLIT can be described as reasonable.
95.83% of the companies in the same industry are more expensive than HLIT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. HLIT is valued rather cheaply when compared to this.
HLIT is valuated correctly with a Price/Forward Earnings ratio of 12.92.
Based on the Price/Forward Earnings ratio, HLIT is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HLIT to the average of the S&P500 Index (22.69), we can say HLIT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
HLIT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HLIT is cheaper than 83.33% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HLIT is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.67 | ||
| EV/EBITDA | 9.39 |
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 12.91% in the coming years. This may justify a more expensive valuation.
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 |
10.04
+0.12 (+1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.03%
Inst Owner Change-3.21%
Ins Owners1.07%
Ins Owner Change3.11%
Market Cap1.14B
Analysts73.85
Price Target10.27 (2.29%)
Short Float %2.32%
Short Ratio2
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)-7.84%
PT rev (3m)-13.05%
EPS NQ rev (1m)-15.54%
EPS NQ rev (3m)-73.85%
EPS NY rev (1m)-21.12%
EPS NY rev (3m)-21.12%
Revenue NQ rev (1m)-0.49%
Revenue NQ rev (3m)-20.58%
Revenue NY rev (1m)-7.35%
Revenue NY rev (3m)-8.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 12.92 | ||
| P/S | 1.66 | ||
| P/FCF | 9.67 | ||
| P/OCF | 8.84 | ||
| P/B | 2.56 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 9.39 |
EPS(TTM)0.91
EY9.06%
EPS(NY)0.78
Fwd EY7.74%
FCF(TTM)1.04
FCFY10.35%
OCF(TTM)1.14
OCFY11.31%
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 | 0.05 |
F-Score9
WACC9.51%
ROIC/WACC1.28
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-48.4%
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-37.96%
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%