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. HLIT has only an average score on both its financial health and profitability. HLIT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
The reported net income has been mixed in the past 5 years: HLIT reported negative net income in multiple years.
HLIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.18%, HLIT belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
HLIT's Return On Equity of 19.80% is amongst the best of the industry. HLIT outperforms 90.20% of its industry peers.
HLIT has a better Return On Invested Capital (5.00%) than 74.51% 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 11.02%.
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
Looking at the Profit Margin, with a value of 13.62%, HLIT belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
HLIT's Operating Margin of 7.57% is fine compared to the rest of the industry. HLIT outperforms 74.51% of its industry peers.
With a decent Gross Margin value of 51.88%, HLIT is doing good in the industry, outperforming 70.59% of the companies in the same industry.
HLIT's Gross Margin has been stable in the last couple of years.
| 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
HLIT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for HLIT has been increased compared to 1 year ago.
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 0.50. This is a bad value and indicates that HLIT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.50, HLIT perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
HLIT has a debt to FCF ratio of 12.84. This is a negative value and a sign of low solvency as HLIT would need 12.84 years to pay back of all of its debts.
HLIT has a Debt to FCF ratio (12.84) which is comparable to the rest of the industry.
HLIT has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, HLIT is in line with its industry, outperforming 49.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 0.5 |
ROIC/WACC0.53
WACC9.41%
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 of 2.08. This is comparable to the rest of the industry: HLIT outperforms 56.86% 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.
Looking at the Quick ratio, with a value of 1.62, HLIT is in the better half of the industry, outperforming 60.78% of the companies in the same industry.
| 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.
Looking at the last year, HLIT shows a small growth in Revenue. The Revenue has grown by 3.07% in the last 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
HLIT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 53.55% yearly.
The Revenue is expected to grow by 14.11% on average over the next years. This is quite good.
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
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.
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
With a Price/Earnings ratio of 28.72, HLIT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, HLIT is valued a bit cheaper than 68.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.48, HLIT is valued at the same level.
Based on the Price/Forward Earnings ratio of 14.77, the valuation of HLIT can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HLIT indicates a somewhat cheap valuation: HLIT is cheaper than 72.55% 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 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HLIT.
HLIT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 155.91 | ||
| EV/EBITDA | 27.74 |
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.
HLIT's earnings are expected to grow with 53.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)2.01
EPS Next 2Y57.16%
EPS Next 3Y53.55%
5. Dividend
5.1 Amount
No dividends for HLIT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HARMONIC INC
NASDAQ:HLIT (1/6/2025, 5:20:01 PM)
After market: 13.5 0 (0%)13.5
-0.05 (-0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.09%
Inst Owner Change-0.03%
Ins Owners1.71%
Ins Owner Change0.75%
Market Cap1.57B
Analysts80
Price Target15.56 (15.26%)
Short Float %2.73%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)0%
PT rev (3m)-11.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.95%
EPS NY rev (1m)0%
EPS NY rev (3m)9.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 14.77 | ||
| P/S | 2.52 | ||
| P/FCF | 155.91 | ||
| P/OCF | 80.04 | ||
| P/B | 3.67 | ||
| P/tB | 8.31 | ||
| EV/EBITDA | 27.74 |
EPS(TTM)0.47
EY3.48%
EPS(NY)0.91
Fwd EY6.77%
FCF(TTM)0.09
FCFY0.64%
OCF(TTM)0.17
OCFY1.25%
SpS5.35
BVpS3.68
TBVpS1.62
PEG (NY)0.3
PEG (5Y)2.01
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 0.5 |
F-Score5
WACC9.41%
ROIC/WACC0.53
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)14.63%
EPS 3Y74.19%
EPS 5Y14.26%
EPS Q2Q%408.43%
EPS Next Y94.63%
EPS Next 2Y57.16%
EPS Next 3Y53.55%
EPS Next 5YN/A
Revenue 1Y (TTM)3.07%
Revenue growth 3Y17.08%
Revenue growth 5Y8.54%
Sales Q2Q%53.89%
Revenue Next Year11.48%
Revenue Next 2Y10.25%
Revenue Next 3Y14.11%
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%