10 USD
+0.03 (+0.3%)
10 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HLIT. HLIT was compared to 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.
HLIT had positive earnings in 4 of the past 5 years.
HLIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HLIT (6.54%) is better than 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's Return On Invested Capital of 9.21% is fine compared to the rest of the industry. HLIT outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLIT is significantly below the industry average of 12.35%.
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 has a better Operating Margin (12.87%) than 79.17% of its industry peers.
In the last couple of years the Operating Margin of HLIT has grown nicely.
HLIT has a better Gross Margin (55.71%) than 72.92% 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.
The number of shares outstanding for HLIT has been increased compared to 1 year ago.
Compared to 5 years ago, HLIT has more shares outstanding
The debt/assets ratio for HLIT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -0.11, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -0.11, HLIT is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
The Debt to FCF ratio of HLIT is 0.95, which is an excellent value as it means it would take HLIT, only 0.95 years of fcf income to pay off 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 62.50% 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 | -0.11 |
ROIC/WACC1.01
WACC9.16%
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.
The Current ratio of HLIT (2.08) 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 (1.64) which is in line with 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.
HLIT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.93%.
The Revenue has been growing by 10.99% on average over the past years. This is quite good.
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 11.53% on average per year.
Based on estimates for the next years, HLIT will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y-44.65%
EPS Next 2Y-2.89%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue Next Year-17.27%
Revenue Next 2Y0.38%
Revenue Next 3Y4.72%
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 12.99, the valuation of HLIT can be described as correct.
Based on the Price/Earnings ratio, HLIT is valued cheaper than 87.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of HLIT to the average of the S&P500 Index (26.50), we can say HLIT is valued rather cheaply.
A Price/Forward Earnings ratio of 13.42 indicates a correct valuation of HLIT.
Based on the Price/Forward Earnings ratio, HLIT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
HLIT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
HLIT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HLIT is cheaper than 77.08% of the companies in the same industry.
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 | 8.41 | ||
| EV/EBITDA | 12.06 |
4.3 Compensation for Growth
The decent profitability rating of HLIT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.56
EPS Next 2Y-2.89%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10
+0.03 (+0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.51%
Inst Owner Change-3.13%
Ins Owners1.16%
Ins Owner Change2.5%
Market Cap1.12B
Revenue(TTM)635.71M
Net Income(TTM)49.63M
Analysts73.85
Price Target12.02 (20.2%)
Short Float %1.68%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)12.24%
PT rev (3m)17.02%
EPS NQ rev (1m)-6.32%
EPS NQ rev (3m)-27.98%
EPS NY rev (1m)10.01%
EPS NY rev (3m)7.26%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.99 | ||
| Fwd PE | 13.42 | ||
| P/S | 1.77 | ||
| P/FCF | 8.41 | ||
| P/OCF | 7.78 | ||
| P/B | 2.53 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)0.77
EY7.7%
EPS(NY)0.74
Fwd EY7.45%
FCF(TTM)1.19
FCFY11.89%
OCF(TTM)1.28
OCFY12.85%
SpS5.66
BVpS3.95
TBVpS1.79
PEG (NY)N/A
PEG (5Y)0.56
Graham Number8.27
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 | -0.11 |
F-Score8
WACC9.16%
ROIC/WACC1.01
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-44.65%
EPS Next 2Y-2.89%
EPS Next 3Y11.53%
EPS Next 5YN/A
Revenue 1Y (TTM)1.93%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%-27.26%
Revenue Next Year-17.27%
Revenue Next 2Y0.38%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
EBIT growth 1Y73.26%
EBIT growth 3Y67.89%
EBIT growth 5Y39.29%
EBIT Next Year-32%
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 -44.65% in the next year.