Harmonic Inc.
Harmonic Inc. Fundamental Analysis
Harmonic Inc. (HLIT) shows weak financial fundamentals with a PE ratio of -28.34, profit margin of -8.46%, and ROE of -10.08%. The company generates $0.5B in annual revenue with weak year-over-year growth of -46.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -35.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HLIT's fundamental strength across five key dimensions:
Efficiency Score
WeakHLIT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHLIT trades at attractive valuation levels.
Growth Score
WeakHLIT faces weak or negative growth trends.
Financial Health Score
ExcellentHLIT maintains a strong and stable balance sheet.
Profitability Score
WeakHLIT struggles to sustain strong margins.
Key Financial Metrics
Is HLIT Expensive or Cheap?
P/E Ratio
HLIT trades at -28.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HLIT's PEG of 0.15 indicates potential undervaluation.
Price to Book
The market values Harmonic Inc. at 3.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.26 times EBITDA. This signals the market has high growth expectations.
How Well Does HLIT Make Money?
Net Profit Margin
For every $100 in sales, Harmonic Inc. keeps $-8.46 as profit after all expenses.
Operating Margin
Core operations generate 5.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-10.08 in profit for every $100 of shareholder equity.
ROA
Harmonic Inc. generates $-6.03 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Harmonic Inc. generates strong operating cash flow of $146.36M, reflecting robust business health.
Free Cash Flow
Harmonic Inc. generates strong free cash flow of $135.45M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.19 in free cash annually.
FCF Yield
HLIT converts 10.83% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-28.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.15
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.10
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How HLIT Stacks Against Its Sector Peers
| Metric | HLIT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -28.34 | 35.19 | Better (Cheaper) |
| ROE | -10.08% | 1155.00% | Weak |
| Net Margin | -8.46% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.35 | 0.41 | Neutral |
| Current Ratio | 2.50 | 4.71 | Strong Liquidity |
| ROA | -6.03% | -314918.00% (disorted) | Weak |
HLIT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Harmonic Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-18.81%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
-26.24%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
135.20%
Industry Style: Growth, Innovation, High Beta
High Growth