9.63 USD
+0.03 (+0.31%)
9.6 USD
-0.03 (-0.31%)
Overall HLIT gets a fundamental rating of 6 out of 10. We evaluated HLIT against 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
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.
Each year in the past 5 years HLIT had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.54%, HLIT is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
HLIT has a Return On Equity of 11.20%. This is in the better half of the industry: HLIT outperforms 77.08% of its industry peers.
HLIT's Return On Invested Capital of 9.21% is fine compared to the rest of the industry. HLIT outperforms 77.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HLIT is below the industry average of 12.15%.
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
The Profit Margin of HLIT (7.81%) is better than 77.08% of its industry peers.
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.
In the last couple of years the Operating Margin of HLIT has grown nicely.
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.
Compared to 1 year ago, HLIT has more shares outstanding
The number of shares outstanding for HLIT has been increased compared to 5 years ago.
Compared to 1 year ago, HLIT has an improved debt to assets ratio.
2.2 Solvency
HLIT has an Altman-Z score of -0.19. 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 -0.19, HLIT is doing worse than 64.58% of the companies in the same industry.
HLIT has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
HLIT has a better Debt to FCF ratio (0.95) than 77.08% of its industry peers.
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: 60.42% 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 | -0.19 |
ROIC/WACC1.01
WACC9.12%
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 54.17% of 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
HLIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.83%, which is quite impressive.
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.
Looking at the last year, HLIT shows a small growth in Revenue. The Revenue has grown by 1.93% in the last year.
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
The Earnings Per Share is expected to grow by 11.53% on average over the next years. This is quite good.
HLIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.72% yearly.
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 2Y0.37%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HLIT is valuated correctly with a Price/Earnings ratio of 12.51.
HLIT's Price/Earnings ratio is rather cheap when compared to the industry. HLIT is cheaper than 89.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of HLIT to the average of the S&P500 Index (27.19), we can say HLIT is valued rather cheaply.
The Price/Forward Earnings ratio is 12.93, which indicates a correct valuation of HLIT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIT indicates a rather cheap valuation: HLIT is cheaper than 87.50% 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 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 12.93 |
4.2 Price Multiples
77.08% 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 rather cheap when compared to the industry. HLIT is cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 11.57 |
4.3 Compensation for Growth
HLIT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.54
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% |
9.63
+0.03 (+0.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.53%
Inst Owner Change0%
Ins Owners1.2%
Ins Owner Change2.5%
Market Cap1.08B
Revenue(TTM)635.71M
Net Income(TTM)49.63M
Analysts73.85
Price Target12.02 (24.82%)
Short Float %2.02%
Short Ratio2.2
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)17.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.98%
EPS NY rev (1m)0%
EPS NY rev (3m)10.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.51 | ||
| Fwd PE | 12.93 | ||
| P/S | 1.7 | ||
| P/FCF | 8.1 | ||
| P/OCF | 7.49 | ||
| P/B | 2.44 | ||
| P/tB | 5.37 | ||
| EV/EBITDA | 11.57 |
EPS(TTM)0.77
EY8%
EPS(NY)0.74
Fwd EY7.74%
FCF(TTM)1.19
FCFY12.35%
OCF(TTM)1.28
OCFY13.34%
SpS5.66
BVpS3.95
TBVpS1.79
PEG (NY)N/A
PEG (5Y)0.54
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 | -0.19 |
F-Score8
WACC9.12%
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 2Y0.37%
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.
Can you provide the valuation status for HARMONIC INC?
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.
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 decline by -44.65% in the next year.