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HARMONIC INC (HLIT) Stock Fundamental Analysis

NASDAQ:HLIT - Nasdaq - US4131601027 - Common Stock - Currency: USD

9.43  -1.69 (-15.2%)

Fundamental Rating

5

Overall HLIT gets a fundamental rating of 5 out of 10. We evaluated HLIT against 52 industry peers in the Communications Equipment industry. HLIT has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on HLIT.


Dividend Valuation Growth Profitability Health

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6

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.
In multiple years HLIT reported negative net income over the last 5 years.
HLIT had a positive operating cash flow in 4 of the past 5 years.
HLIT Yearly Net Income VS EBIT VS OCF VS FCFHLIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M

1.2 Ratios

HLIT has a Return On Assets of 11.18%. This is amongst the best in the industry. HLIT outperforms 92.16% of its industry peers.
HLIT has a better Return On Equity (19.80%) than 90.20% of its industry peers.
HLIT has a better Return On Invested Capital (5.00%) than 76.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLIT is significantly below the industry average of 11.45%.
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 RankSector 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
HLIT Yearly ROA, ROE, ROICHLIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 -20 -30

1.3 Margins

The Profit Margin of HLIT (13.62%) is better than 88.24% of its industry peers.
HLIT's Operating Margin of 7.57% is fine compared to the rest of the industry. HLIT outperforms 74.51% of its industry peers.
HLIT's Gross Margin of 51.88% is fine compared to the rest of the industry. HLIT outperforms 68.63% 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 RankSector 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%
HLIT Yearly Profit, Operating, Gross MarginsHLIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HLIT is destroying value.
There is no outstanding debt for HLIT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
HLIT Yearly Shares OutstandingHLIT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
HLIT Yearly Total Debt VS Total AssetsHLIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

2.2 Solvency

HLIT has an Altman-Z score of -0.02. This is a bad value and indicates that HLIT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.02, HLIT is doing worse than 64.71% 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.
With a Debt to FCF ratio value of 12.84, HLIT perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that HLIT is not too dependend on debt financing.
HLIT has a Debt to Equity ratio (0.29) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 12.84
Altman-Z -0.02
ROIC/WACC0.56
WACC8.86%
HLIT Yearly LT Debt VS Equity VS FCFHLIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M 300M 400M

2.3 Liquidity

A Current Ratio of 2.08 indicates that HLIT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.08, HLIT is in line with its industry, outperforming 54.90% of the companies in the same industry.
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 has a better Quick ratio (1.62) than 60.78% of its industry peers.
Industry RankSector Rank
Current Ratio 2.08
Quick Ratio 1.62
HLIT Yearly Current Assets VS Current LiabilitesHLIT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

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5

3. Growth

3.1 Past

HLIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 113.51%, which is quite impressive.
HLIT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.05% yearly.
EPS 1Y (TTM)113.51%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%246.15%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%32.96%

3.2 Future

The Earnings Per Share is expected to grow by 30.22% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.45% on average over the next years. This is quite good.
EPS Next Y15.69%
EPS Next 2Y30.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.02%
Revenue Next 2Y15.45%
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.
HLIT Yearly Revenue VS EstimatesHLIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
HLIT Yearly EPS VS EstimatesHLIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1

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8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 11.94 indicates a reasonable valuation of HLIT.
Based on the Price/Earnings ratio, HLIT is valued cheaply inside the industry as 90.20% of the companies are valued more expensively.
HLIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.20.
With a Price/Forward Earnings ratio of 10.32, the valuation of HLIT can be described as very reasonable.
HLIT's Price/Forward Earnings ratio is rather cheap when compared to the industry. HLIT is cheaper than 84.31% of the companies in the same industry.
HLIT is valuated cheaply when we compare the Price/Forward Earnings ratio to 94.48, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.94
Fwd PE 10.32
HLIT Price Earnings VS Forward Price EarningsHLIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

64.71% 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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 108.91
EV/EBITDA 22.98
HLIT Per share dataHLIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4 5

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 30.22% in the coming years.
PEG (NY)0.76
PEG (5Y)0.52
EPS Next 2Y30.22%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for HLIT!.
Industry RankSector Rank
Dividend Yield N/A

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HARMONIC INC

NASDAQ:HLIT (2/11/2025, 12:20:08 PM)

9.43

-1.69 (-15.2%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-10 2025-02-10/amc
Earnings (Next)N/A N/A
Inst Owners98.09%
Inst Owner Change-16.67%
Ins Owners1.71%
Ins Owner Change1.6%
Market Cap1.10B
Analysts78.33
Price Target15.05 (59.6%)
Short Float %2.58%
Short Ratio2.97
Dividend
Industry RankSector 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)59.7%
Min EPS beat(2)18.28%
Max EPS beat(2)101.11%
EPS beat(4)4
Avg EPS beat(4)61.09%
Min EPS beat(4)18.28%
Max EPS beat(4)101.11%
EPS beat(8)6
Avg EPS beat(8)24.34%
EPS beat(12)10
Avg EPS beat(12)34.14%
EPS beat(16)14
Avg EPS beat(16)261.57%
Revenue beat(2)2
Avg Revenue beat(2)3.64%
Min Revenue beat(2)1.76%
Max Revenue beat(2)5.51%
Revenue beat(4)3
Avg Revenue beat(4)2.03%
Min Revenue beat(4)-1.67%
Max Revenue beat(4)5.51%
Revenue beat(8)4
Avg Revenue beat(8)-0.95%
Revenue beat(12)8
Avg Revenue beat(12)0.33%
Revenue beat(16)12
Avg Revenue beat(16)1.31%
PT rev (1m)-3.28%
PT rev (3m)-14.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 11.94
Fwd PE 10.32
P/S 1.76
P/FCF 108.91
P/OCF 55.91
P/B 2.56
P/tB 5.8
EV/EBITDA 22.98
EPS(TTM)0.79
EY8.38%
EPS(NY)0.91
Fwd EY9.69%
FCF(TTM)0.09
FCFY0.92%
OCF(TTM)0.17
OCFY1.79%
SpS5.35
BVpS3.68
TBVpS1.62
PEG (NY)0.76
PEG (5Y)0.52
Profitability
Industry RankSector Rank
ROA 11.18%
ROE 19.8%
ROCE 7.9%
ROIC 5%
ROICexc 5.54%
ROICexgc 9.96%
OM 7.57%
PM (TTM) 13.62%
GM 51.88%
FCFM 1.62%
ROA(3y)5.61%
ROA(5y)2.17%
ROE(3y)10.8%
ROE(5y)3.75%
ROIC(3y)4.58%
ROIC(5y)N/A
ROICexc(3y)5.94%
ROICexc(5y)N/A
ROICexgc(3y)24.43%
ROICexgc(5y)N/A
ROCE(3y)7.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 12.84
Debt/EBITDA 2.06
Cap/Depr 78.11%
Cap/Sales 1.53%
Interest Coverage 250
Cash Conversion 33.04%
Profit Quality 11.88%
Current Ratio 2.08
Quick Ratio 1.62
Altman-Z -0.02
F-Score5
WACC8.86%
ROIC/WACC0.56
Cap/Depr(3y)81.33%
Cap/Depr(5y)100.34%
Cap/Sales(3y)1.81%
Cap/Sales(5y)3.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)113.51%
EPS 3Y32.45%
EPS 5Y23.05%
EPS Q2Q%246.15%
EPS Next Y15.69%
EPS Next 2Y30.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%32.96%
Revenue Next Year9.02%
Revenue Next 2Y15.45%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y46.7%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year137.76%
EBIT Next 3Y65.33%
EBIT Next 5YN/A
FCF growth 1Y161.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y401.46%
OCF growth 3Y-43.51%
OCF growth 5Y-10.48%