HARMONIC INC (HLIT)
US4131601027 - Common Stock
HLIT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. Both the profitability and the financial health of HLIT get a neutral evaluation. Nothing too spectacular is happening here. HLIT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year HLIT was profitable.
HLIT had a positive operating cash flow in the past year.
In multiple years HLIT reported negative net income over the last 5 years.
HLIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HLIT's Return On Assets of 11.18% is amongst the best of the industry. HLIT outperforms 92.16% of its industry peers.
With an excellent Return On Equity value of 19.80%, HLIT belongs to the best of the industry, outperforming 90.20% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.00%, HLIT is doing good in the industry, outperforming 74.51% 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 10.16%.
The last Return On Invested Capital (5.00%) for HLIT is above the 3 year average (4.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 19.8% | ||
| ROIC | 5% |
ROA(3y)5.61%
ROA(5y)2.17%
ROE(3y)10.8%
ROE(5y)3.75%
ROIC(3y)4.58%
ROIC(5y)N/A
1.3 Margins
HLIT's Profit Margin of 13.62% is amongst the best of the industry. HLIT outperforms 88.24% of its industry peers.
The Operating Margin of HLIT (7.57%) is better than 74.51% of its industry peers.
HLIT has a better Gross Margin (51.88%) than 70.59% 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 | 7.57% | ||
| PM (TTM) | 13.62% | ||
| GM | 51.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.16%
GM growth 5Y-0.2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLIT is destroying value.
Compared to 1 year ago, HLIT has more shares outstanding
Compared to 5 years ago, HLIT has more shares outstanding
HLIT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.25, we must say that HLIT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.25, HLIT perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
The Debt to FCF ratio of HLIT is 12.84, which is on the high side as it means it would take HLIT, 12.84 years of fcf income to pay off all of its debts.
HLIT's Debt to FCF ratio of 12.84 is in line compared to the rest of the industry. HLIT outperforms 50.98% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that HLIT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, HLIT perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.56
WACC8.97%
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 of 2.08. This is comparable to the rest of the industry: HLIT outperforms 52.94% of its industry peers.
HLIT has a Quick Ratio of 1.62. 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 1.62 is in line compared to the rest of the industry. HLIT outperforms 58.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
HLIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.63%, which is quite good.
HLIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.26% yearly.
The Revenue has been growing slightly by 3.07% in the past year.
The Revenue has been growing by 8.54% on average over the past years. This is quite good.
EPS 1Y (TTM)14.63%
EPS 3Y74.19%
EPS 5Y14.26%
EPS Q2Q%408.43%
Revenue 1Y (TTM)3.07%
Revenue growth 3Y17.08%
Revenue growth 5Y8.54%
Sales Q2Q%53.89%
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 53.55% on average per year.
Based on estimates for the next years, HLIT will show a quite strong growth in Revenue. The Revenue will grow by 14.11% on average per year.
EPS Next Y94.63%
EPS Next 2Y57.16%
EPS Next 3Y53.55%
EPS Next 5YN/A
Revenue Next Year11.48%
Revenue Next 2Y10.25%
Revenue Next 3Y14.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.53, which means the current valuation is very expensive for HLIT.
Compared to the rest of the industry, the Price/Earnings ratio of HLIT indicates a somewhat cheap valuation: HLIT is cheaper than 70.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.20, HLIT is valued at the same level.
A Price/Forward Earnings ratio of 13.64 indicates a correct valuation of HLIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIT indicates a somewhat cheap valuation: HLIT is cheaper than 78.43% of the companies listed in the same industry.
HLIT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
62.75% of the companies in the same industry are more expensive than HLIT, based on the Enterprise Value to EBITDA ratio.
HLIT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 144.02 | ||
| EV/EBITDA | 25.47 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
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 53.55% in the coming years.
PEG (NY)0.28
PEG (5Y)1.86
EPS Next 2Y57.16%
EPS Next 3Y53.55%
5. Dividend
5.1 Amount
HLIT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HARMONIC INC
NASDAQ:HLIT (11/22/2024, 6:37:44 PM)
After market: 12.47 0 (0%)12.47
+0.08 (+0.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 13.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.28
PEG (5Y)1.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.18% | ||
| ROE | 19.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.57% | ||
| PM (TTM) | 13.62% | ||
| GM | 51.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.63%
EPS 3Y74.19%
EPS 5Y
EPS Q2Q%
EPS Next Y94.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.07%
Revenue growth 3Y17.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y