NasdaqGS:HLIT

Stock Analysis Report

Executive Summary

Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide.

Snowflake

Fundamentals

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Harmonic's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.2%

HLIT

0.8%

US Communications

2.3%

US Market


1 Year Return

21.3%

HLIT

-0.1%

US Communications

5.6%

US Market

Return vs Industry: HLIT exceeded the US Communications industry which returned -0.1% over the past year.

Return vs Market: HLIT exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

HLITIndustryMarket
7 Day10.2%0.8%2.3%
30 Day-3.1%-5.4%-1.0%
90 Day-14.6%-15.7%-0.7%
1 Year21.3%21.3%2.1%-0.1%7.9%5.6%
3 Year22.9%22.9%51.2%41.8%45.6%36.3%
5 Year9.1%9.1%93.7%73.5%65.8%47.6%

Price Volatility Vs. Market

How volatile is Harmonic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Harmonic undervalued compared to its fair value and its price relative to the market?

2.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate HLIT's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate HLIT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HLIT is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: HLIT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate HLIT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HLIT is overvalued based on its PB Ratio (2.8x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

How is Harmonic forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

107.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLIT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HLIT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HLIT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HLIT's revenue (12.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HLIT's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if HLIT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Harmonic performed over the past 5 years?

-7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLIT is unprofitable, and losses have increased over the past 5 years at a rate of -7.9% per year.

Accelerating Growth: Unable to compare HLIT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HLIT is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (22.8%).


Return on Equity

High ROE: HLIT has a negative Return on Equity (-13%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: HLIT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: HLIT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Harmonic's financial position?


Financial Position Analysis

Short Term Liabilities: HLIT's short term assets ($185.5M) exceeds its short term liabilities ($138.3M)

Long Term Liabilities: HLIT's short term assets (185.5M) exceeds its long term liabilities (176.3M)


Debt to Equity History and Analysis

Debt Level: HLIT's debt to equity ratio (64.2%) is considered high

Reducing Debt: Insufficient data to determine if HLIT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: HLIT has a low level of unsold assets or inventory.

Debt Coverage by Assets: HLIT's debt is covered by short term assets (assets are 1.363520x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HLIT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: HLIT has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 100.5% each year


Next Steps

Dividend

What is Harmonic's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate HLIT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HLIT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HLIT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HLIT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLIT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Harmonic's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Patrick Harshman (54yo)

13.4yrs

Tenure

US$2,343,074

Compensation

Dr. Patrick J. Harshman has been the Chief Executive Officer and President of Harmonic Inc. since May 4, 2006. Dr. Harshman has driven Harmonic’s strategic re-positioning as the worldwide leader in video d ...


CEO Compensation Analysis

Compensation vs. Market: Patrick's total compensation ($USD2.34M) is about average for companies of similar size in the US market ($USD1.82M).

Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.0yrs

Average Tenure

51yo

Average Age

Experienced Management: HLIT's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

6.5yrs

Average Tenure

56yo

Average Age

Experienced Board: HLIT's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Patrick Harshman (54yo)

    President

    • Tenure: 13.4yrs
    • Compensation: US$2.34m
  • Jeremy Rosenberg

    Senior Vice President of Business Development

    • Tenure: 2.8yrs
  • Neven Haltmayer (54yo)

    Senior Vice President of R&D - Video Business

    • Tenure: 8.6yrs
    • Compensation: US$965.14k
  • Nimrod Ben-Natan (51yo)

    Senior VP & GM of Cable Access Business

    • Tenure: 7.3yrs
    • Compensation: US$1.24m
  • Tim Chu (46yo)

    General Counsel

    • Tenure: 6yrs
  • Shahar Bar

    Senior Vice President of Corporate Development

    • Tenure: 0yrs
  • Sanjay Kalra (46yo)

    Senior VP

    • Tenure: 2.3yrs
    • Compensation: US$1.02m
  • Eric Louvet

    Senior VP of Global Sales & Video Services

    • Tenure: 0.7yrs

Board Members

  • David Krall (59yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$204.66k
  • Susan Swenson (70yo)

    Director

    • Tenure: 7.7yrs
    • Compensation: US$182.00k
  • Patrick Harshman (54yo)

    President

    • Tenure: 13.4yrs
    • Compensation: US$2.34m
  • Pat Gallagher (64yo)

    Chairman of the Board

    • Tenure: 6.5yrs
    • Compensation: US$209.50k
  • Nikos Theodosopoulos (56yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$187.00k
  • Mitzi Reaugh (41yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$164.00k
  • Debbie Clifford (45yo)

    Director

    • Tenure: 1yrs
    • Compensation: US$169.81k

Company Information

Harmonic Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Harmonic Inc.
  • Ticker: HLIT
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$594.556m
  • Shares outstanding: 89.61m
  • Website: https://www.harmonicinc.com

Number of Employees


Location

  • Harmonic Inc.
  • 4300 North First Street
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLITNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1995
HMCDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1995
0J38LSE (London Stock Exchange)YesCommon StockGBUSDMay 1995

Biography

Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide. Its products enable customers to create, prepare, and deliver a range of video and broadband ser ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:36
End of Day Share Price2019/10/16 00:00
Earnings2019/06/28
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.