HARMONIC INC (HLIT) Stock Fundamental Analysis
NASDAQ:HLIT • US4131601027
10.9 USD
+0.17 (+1.58%)
At close: Feb 20, 2026
10.9 USD
0 (0%)
After Hours: 2/20/2026, 8:00:01 PM
Overall HLIT gets a fundamental rating of 5 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLIT. These ratings would make HLIT suitable 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.
- HLIT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- HLIT has a better Return On Assets (6.54%) than 79.17% of its industry peers.
- HLIT has a better Return On Equity (11.20%) than 79.17% 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 77.08% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for HLIT is below the industry average of 11.27%.
- The 3 year average ROIC (7.26%) for HLIT is below the current ROIC(9.21%), indicating increased profibility in the last year.
| 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
- With a decent Profit Margin value of 7.81%, HLIT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of HLIT has grown nicely.
- Looking at the Operating Margin, with a value of 12.87%, HLIT is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
- HLIT's Operating Margin has improved in the last couple of years.
- HLIT's Gross Margin of 55.71% is fine compared to the rest of the industry. HLIT outperforms 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HLIT is creating some value.
- HLIT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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.
- HLIT has a Altman-Z score of 0.05. This is in the lower half of the industry: HLIT underperforms 64.58% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 0.95, HLIT is in the better half of the industry, outperforming 77.08% 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: 62.50% of the companies in the same industry are doing better.
- 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 | 0.95 | ||
| Altman-Z | 0.05 |
ROIC/WACC1
WACC9.21%
2.3 Liquidity
- A Current Ratio of 2.08 indicates that HLIT has no problem at all paying its short term obligations.
- HLIT has a Current ratio (2.08) which is in line with its industry peers.
- HLIT has a Quick Ratio of 1.64. This is a normal value and indicates that HLIT is financially healthy and should not expect problems in meeting its short term obligations.
- HLIT has a Quick ratio (1.64) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- HLIT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.90%.
- Measured over the past years, HLIT shows a very strong growth in Earnings Per Share. The EPS has been growing by 40.26% on average per year.
EPS 1Y (TTM)-51.9%
EPS 3Y-11.05%
EPS 5Y40.26%
EPS Q2Q%-86.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-55.78%
3.2 Future
- Based on estimates for the next years, HLIT will show a very strong growth in Earnings Per Share. The EPS will grow by 69.83% on average per year.
- The Revenue is expected to grow by 17.82% on average over the next years. This is quite good.
EPS Next Y96.04%
EPS Next 2Y69.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year21.77%
Revenue Next 2Y17.82%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- HLIT is valuated quite expensively with a Price/Earnings ratio of 28.68.
- HLIT's Price/Earnings ratio is a bit cheaper when compared to the industry. HLIT is cheaper than 68.75% of the companies in the same industry.
- When comparing the Price/Earnings ratio of HLIT to the average of the S&P500 Index (26.99), we can say HLIT is valued inline with the index average.
- The Price/Forward Earnings ratio is 14.63, which indicates a correct valuation of HLIT.
- 85.42% of the companies in the same industry are more expensive than HLIT, based on the Price/Forward Earnings ratio.
- HLIT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 14.63 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | 12.94 |
4.3 Compensation for Growth
- HLIT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of HLIT may justify a higher PE ratio.
- A more expensive valuation may be justified as HLIT's earnings are expected to grow with 69.83% in the coming years.
PEG (NY)0.3
PEG (5Y)0.71
EPS Next 2Y69.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
10.9
+0.17 (+1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-19 2026-02-19/amc
Earnings (Next)04-27 2026-04-27
Inst Owners91.53%
Inst Owner Change0.43%
Ins Owners1.2%
Ins Owner Change1.95%
Market Cap1.22B
Revenue(TTM)N/A
Net Income(TTM)49.63M
Analysts73.85
Price Target12.02 (10.28%)
Short Float %2.49%
Short Ratio2.7
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)0%
PT rev (3m)12.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.32%
EPS NY rev (1m)0%
EPS NY rev (3m)10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.68 | ||
| Fwd PE | 14.63 | ||
| P/S | 1.92 | ||
| P/FCF | 9.17 | ||
| P/OCF | 8.48 | ||
| P/B | 2.76 | ||
| P/tB | 6.08 | ||
| EV/EBITDA | 12.94 |
EPS(TTM)0.38
EY3.49%
EPS(NY)0.74
Fwd EY6.83%
FCF(TTM)1.19
FCFY10.91%
OCF(TTM)1.28
OCFY11.79%
SpS5.66
BVpS3.95
TBVpS1.79
PEG (NY)0.3
PEG (5Y)0.71
Graham Number5.81
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 | 0.05 |
F-Score8
WACC9.21%
ROIC/WACC1
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)-51.9%
EPS 3Y-11.05%
EPS 5Y40.26%
EPS Q2Q%-86.67%
EPS Next Y96.04%
EPS Next 2Y69.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-55.78%
Revenue Next Year21.77%
Revenue Next 2Y17.82%
Revenue Next 3YN/A
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 5 / 10 to HLIT.
Can you provide the valuation status for HARMONIC INC?
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.
How financially healthy is HARMONIC INC?
The financial health rating of HARMONIC INC (HLIT) is 5 / 10.
What is the expected EPS growth for HARMONIC INC (HLIT) stock?
The Earnings per Share (EPS) of HARMONIC INC (HLIT) is expected to grow by 96.04% in the next year.