HARMONIC INC (HLIT) Stock Fundamental Analysis
USA - NASDAQ:HLIT - US4131601027 - Common Stock
10.2 USD
-0.09 (-0.87%)
10.2 USD
0 (0%)
Overall HLIT gets a fundamental rating of 6 out of 10. We evaluated HLIT against 48 industry peers in the Communications Equipment industry. HLIT has an excellent profitability rating, but 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.
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 (8.76%) than 85.71% of its industry peers.
With an excellent Return On Equity value of 15.38%, HLIT belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
HLIT's Return On Invested Capital of 12.16% is amongst the best of the industry. HLIT outperforms 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLIT is significantly below the industry average of 13.08%.
The 3 year average ROIC (7.26%) for HLIT is below the current ROIC(12.16%), indicating increased profibility in the last year.
| 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 better Profit Margin (9.96%) than 79.59% 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 85.71% of its industry peers.
HLIT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.40%, 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 | 15.93% | ||
| 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
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 0.10, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
HLIT's Altman-Z score of 0.10 is on the low side compared to the rest of the industry. HLIT is outperformed by 67.35% of its industry peers.
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 73.47% of the companies in the same industry.
HLIT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.27, HLIT is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
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 | 1.11 | ||
| Altman-Z | 0.1 |
ROIC/WACC1.36
WACC8.91%
2.3 Liquidity
A Current Ratio of 1.99 indicates that HLIT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.99, HLIT perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that HLIT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.58, HLIT perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
| 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.
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%.
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)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
The Earnings Per Share is expected to grow by 12.91% 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 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 reasonably with a Price/Earnings ratio of 11.21.
Based on the Price/Earnings ratio, HLIT is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
HLIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
With a Price/Forward Earnings ratio of 13.13, HLIT is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 85.71% of the companies listed in the same industry.
HLIT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 13.13 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 83.67% of the companies listed in the same industry.
91.84% 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 | 9.82 | ||
| EV/EBITDA | 9.65 |
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)0.49
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 |
10.2
-0.09 (-0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change0.63%
Ins Owners1.12%
Ins Owner Change3.54%
Market Cap1.16B
Analysts73.85
Price Target10.27 (0.69%)
Short Float %2.1%
Short Ratio2.22
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)-7.84%
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)0.02%
Revenue NQ rev (3m)-14.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.21 | ||
| Fwd PE | 13.13 | ||
| P/S | 1.68 | ||
| P/FCF | 9.82 | ||
| P/OCF | 8.98 | ||
| P/B | 2.6 | ||
| P/tB | 5.67 | ||
| EV/EBITDA | 9.65 |
EPS(TTM)0.91
EY8.92%
EPS(NY)0.78
Fwd EY7.62%
FCF(TTM)1.04
FCFY10.18%
OCF(TTM)1.14
OCFY11.13%
SpS6.06
BVpS3.92
TBVpS1.8
PEG (NY)N/A
PEG (5Y)0.49
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 | 0.1 |
F-Score9
WACC8.91%
ROIC/WACC1.36
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%