9.56 USD
+0.02 (+0.21%)
9.4307 USD
-0.13 (-1.35%)
We assign a fundamental rating of 6 out of 10 to HLIT. HLIT was compared to 48 industry peers in the Communications Equipment industry. HLIT scores excellent on profitability, but there are some minor concerns on its financial health. HLIT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes HLIT very considerable 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
The Return On Assets of HLIT (6.54%) is better than 79.17% of its industry peers.
HLIT has a better Return On Equity (11.20%) than 77.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.21%, HLIT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HLIT is significantly below the industry average of 12.82%.
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
The Profit Margin of HLIT (7.81%) is better than 77.08% of its industry peers.
HLIT's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.87%, HLIT is doing good in the industry, outperforming 79.17% of the companies in the same industry.
In the last couple of years the Operating Margin of HLIT has grown nicely.
Looking at the Gross Margin, with a value of 55.71%, HLIT is in the better half of 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HLIT is 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.
HLIT has a better debt/assets ratio than last year.
2.2 Solvency
HLIT has an Altman-Z score of -0.18. This is a bad value and indicates that HLIT is not financially healthy and even has some risk of bankruptcy.
HLIT's Altman-Z score of -0.18 is on the low side compared to the rest of the industry. HLIT is outperformed by 66.67% 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.
HLIT has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
HLIT's Debt to Equity ratio of 0.27 is on the low side compared to the rest of the industry. HLIT is outperformed by 60.42% of its industry peers.
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 | 0.95 | ||
| Altman-Z | -0.18 |
ROIC/WACC1.02
WACC9.05%
2.3 Liquidity
HLIT has a Current Ratio of 2.08. This indicates that HLIT is financially healthy and has no problem in meeting its short term obligations.
HLIT has a Current ratio (2.08) which is comparable to the rest of the industry.
A Quick Ratio of 1.64 indicates that HLIT should not have too much problems paying its short term obligations.
HLIT has a Quick ratio of 1.64. This is comparable to the rest of the industry: HLIT outperforms 54.17% 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.
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 small growth in Revenue. The Revenue has grown by 1.93% in the last year.
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)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
The Earnings Per Share is expected to grow by 12.91% on average over the next years. This is quite good.
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-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.
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
A Price/Earnings ratio of 12.42 indicates a correct valuation of HLIT.
Based on the Price/Earnings ratio, HLIT is valued cheaper than 85.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. HLIT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.31 indicates a correct valuation of HLIT.
89.58% of the companies in the same industry are more expensive than HLIT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, HLIT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than HLIT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, HLIT is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 11.66 |
4.3 Compensation for Growth
HLIT has a very decent profitability rating, which 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)0.54
EPS Next 2Y-0.83%
EPS Next 3Y12.91%
5. Dividend
5.1 Amount
No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.56
+0.02 (+0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.67%
Inst Owner Change-3.15%
Ins Owners1.12%
Ins Owner Change3.48%
Market Cap1.09B
Revenue(TTM)635.71M
Net Income(TTM)49.63M
Analysts73.85
Price Target12.02 (25.73%)
Short Float %2%
Short Ratio2.76
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)17.02%
PT rev (3m)17.02%
EPS NQ rev (1m)-23.12%
EPS NQ rev (3m)-29.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.5%
Revenue NQ rev (1m)-3.65%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.42 | ||
| Fwd PE | 12.31 | ||
| P/S | 1.71 | ||
| P/FCF | 8.15 | ||
| P/OCF | 7.54 | ||
| P/B | 2.45 | ||
| P/tB | 5.4 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)0.77
EY8.05%
EPS(NY)0.78
Fwd EY8.13%
FCF(TTM)1.17
FCFY12.27%
OCF(TTM)1.27
OCFY13.26%
SpS5.59
BVpS3.89
TBVpS1.77
PEG (NY)N/A
PEG (5Y)0.54
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 | -0.18 |
F-Score8
WACC9.05%
ROIC/WACC1.02
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 7 / 10 to HARMONIC INC (HLIT). This can be considered as Undervalued.
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.