HARMONIC INC (HLIT) Stock Fundamental Analysis
NASDAQ:HLIT - Nasdaq - US4131601027 - Common Stock - Currency: USD
HLIT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Communications Equipment industry. HLIT has an excellent profitability rating, but there are some minor concerns on its financial health. HLIT is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make HLIT a good candidate for value investing.
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.
Of the past 5 years HLIT 4 years were profitable.
In the past 5 years HLIT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 6.88%, HLIT belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.94%, HLIT belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
HLIT has a Return On Invested Capital of 12.06%. This is amongst the best in the industry. HLIT outperforms 84.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HLIT is significantly below the industry average of 13.82%.
The 3 year average ROIC (7.26%) for HLIT is below the current ROIC(12.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 11.94% | ||
| ROIC | 12.06% |
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 (7.72%) than 82.00% of its industry peers.
HLIT's Profit Margin has improved in the last couple of years.
The Operating Margin of HLIT (15.72%) is better than 88.00% of its industry peers.
In the last couple of years the Operating Margin of HLIT has grown nicely.
With a decent Gross Margin value of 55.29%, HLIT is doing good in the industry, outperforming 74.00% 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 | 15.72% | ||
| PM (TTM) | 7.72% | ||
| GM | 55.29% |
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.
HLIT has more shares outstanding than it did 5 years ago.
HLIT has a better debt/assets ratio than last year.
2.2 Solvency
HLIT has an Altman-Z score of 0.08. This is a bad value and indicates that HLIT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of HLIT (0.08) is worse than 66.00% of its industry peers.
HLIT has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.17, HLIT is doing good in the industry, outperforming 74.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.27, HLIT is in line with its industry, outperforming 46.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 0.08 |
ROIC/WACC1.28
WACC9.41%
2.3 Liquidity
A Current Ratio of 2.06 indicates that HLIT has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.06, HLIT is doing good in the industry, outperforming 62.00% of the companies in the same industry.
A Quick Ratio of 1.69 indicates that HLIT should not have too much problems paying its short term obligations.
HLIT's Quick ratio of 1.69 is fine compared to the rest of the industry. HLIT outperforms 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 260.00% over the past year.
The Earnings Per Share has been growing by 23.05% on average over the past years. This is a very strong growth
The Revenue has grown by 20.52% in the past year. This is a very strong growth!
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)260%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%170.56%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%9.07%
3.2 Future
The Earnings Per Share is expected to grow by 16.86% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y-34.58%
EPS Next 2Y7.87%
EPS Next 3Y16.86%
EPS Next 5YN/A
Revenue Next Year-10.22%
Revenue Next 2Y4.5%
Revenue Next 3Y6.77%
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
The Price/Earnings ratio is 10.90, which indicates a very decent valuation of HLIT.
Based on the Price/Earnings ratio, HLIT is valued cheaper than 92.00% of the companies in the same industry.
HLIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
A Price/Forward Earnings ratio of 10.67 indicates a reasonable valuation of HLIT.
92.00% of the companies in the same industry are more expensive than HLIT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.90. HLIT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HLIT is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
HLIT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HLIT is cheaper than 86.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.17 | ||
| EV/EBITDA | 9.1 |
4.3 Compensation for Growth
The excellent profitability rating of HLIT may justify a higher PE ratio.
HLIT's earnings are expected to grow with 16.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y7.87%
EPS Next 3Y16.86%
5. Dividend
5.1 Amount
No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.81
+0.04 (+0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners93.96%
Inst Owner Change-4.48%
Ins Owners0.99%
Ins Owner Change6.47%
Market Cap1.11B
Analysts78.33
Price Target11.82 (20.49%)
Short Float %1.94%
Short Ratio2.39
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)64.52%
Min EPS beat(2)20.32%
Max EPS beat(2)108.72%
EPS beat(4)4
Avg EPS beat(4)62.11%
Min EPS beat(4)18.28%
Max EPS beat(4)108.72%
EPS beat(8)6
Avg EPS beat(8)32.65%
EPS beat(12)10
Avg EPS beat(12)34.97%
EPS beat(16)14
Avg EPS beat(16)265.33%
Revenue beat(2)2
Avg Revenue beat(2)2.04%
Min Revenue beat(2)2.02%
Max Revenue beat(2)2.05%
Revenue beat(4)4
Avg Revenue beat(4)2.84%
Min Revenue beat(4)1.76%
Max Revenue beat(4)5.51%
Revenue beat(8)5
Avg Revenue beat(8)-0.32%
Revenue beat(12)8
Avg Revenue beat(12)-0.04%
Revenue beat(16)12
Avg Revenue beat(16)0.99%
PT rev (1m)0%
PT rev (3m)-1.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-69.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 10.67 | ||
| P/S | 1.62 | ||
| P/FCF | 10.17 | ||
| P/OCF | 9.39 | ||
| P/B | 2.5 | ||
| P/tB | 5.36 | ||
| EV/EBITDA | 9.1 |
EPS(TTM)0.9
EY9.17%
EPS(NY)0.92
Fwd EY9.37%
FCF(TTM)0.96
FCFY9.83%
OCF(TTM)1.04
OCFY10.65%
SpS6.07
BVpS3.93
TBVpS1.83
PEG (NY)N/A
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 11.94% | ||
| ROCE | 17.82% | ||
| ROIC | 12.06% | ||
| ROICexc | 15.96% | ||
| ROICexgc | 33.12% | ||
| OM | 15.72% | ||
| PM (TTM) | 7.72% | ||
| GM | 55.29% | ||
| FCFM | 15.88% |
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-Score7
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 77.69% | ||
| Cap/Sales | 1.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.74% | ||
| Profit Quality | 205.75% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 0.08 |
F-Score7
WACC9.41%
ROIC/WACC1.28
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)260%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%170.56%
EPS Next Y-34.58%
EPS Next 2Y7.87%
EPS Next 3Y16.86%
EPS Next 5YN/A
Revenue 1Y (TTM)20.52%
Revenue growth 3Y10.2%
Revenue growth 5Y10.99%
Sales Q2Q%9.07%
Revenue Next Year-10.22%
Revenue Next 2Y4.5%
Revenue Next 3Y6.77%
Revenue Next 5YN/A
EBIT growth 1Y1600.45%
EBIT growth 3Y67.89%
EBIT growth 5Y39.29%
EBIT Next Year-26.14%
EBIT Next 3Y26.91%
EBIT Next 5YN/A
FCF growth 1Y264.09%
FCF growth 3Y23.43%
FCF growth 5Y20.25%
OCF growth 1Y202.58%
OCF growth 3Y14.71%
OCF growth 5Y14.62%