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Harmonic

Nasdaq:HLIT
Snowflake Description

Adequate balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HLIT
Nasdaq
$491M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide. The last earnings update was 23 days ago. More info.


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HLIT Share Price and Events
7 Day Returns
-1.2%
NasdaqGS:HLIT
-1%
US Communications
-1.1%
US Market
1 Year Returns
45.8%
NasdaqGS:HLIT
16.9%
US Communications
6.4%
US Market
HLIT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Harmonic (HLIT) -1.2% 0% 21.2% 45.8% 71.5% -19%
US Communications -1% 3.8% 25% 16.9% 77.2% 85.7%
US Market -1.1% 0.3% 17.2% 6.4% 37.9% 42.1%
1 Year Return vs Industry and Market
  • HLIT outperformed the Communications industry which returned 16.9% over the past year.
  • HLIT outperformed the Market in United States of America which returned 6.4% over the past year.
Price Volatility
HLIT
Industry
5yr Volatility vs Market

Value

 Is Harmonic undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Harmonic to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Harmonic.

NasdaqGS:HLIT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:HLIT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.084 (1 + (1- 21%) (27.41%))
1.213
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.213 * 5.96%)
9.96%

Discounted Cash Flow Calculation for NasdaqGS:HLIT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Harmonic is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:HLIT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.96%)
2019 11.90 Analyst x1 10.82
2020 19.70 Analyst x1 16.29
2021 30.70 Analyst x1 23.09
2022 40.70 Analyst x1 27.84
2023 51.90 Analyst x1 32.28
2024 61.12 Est @ 17.76% 34.57
2025 69.22 Est @ 13.25% 35.61
2026 76.21 Est @ 10.1% 35.65
2027 82.22 Est @ 7.89% 34.98
2028 87.43 Est @ 6.34% 33.82
Present value of next 10 years cash flows $284.95
NasdaqGS:HLIT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $87.43 × (1 + 2.73%) ÷ (9.96% – 2.73%)
$1,241.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,241.88 ÷ (1 + 9.96%)10
$480.44
NasdaqGS:HLIT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $284.95 + $480.44
$765.39
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $765.39 / 88.68
$8.63
NasdaqGS:HLIT Discount to Share Price
Calculation Result
Value per share (USD) From above. $8.63
Current discount Discount to share price of $5.54
= -1 x ($5.54 - $8.63) / $8.63
35.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Harmonic is available for.
Intrinsic value
36%
Share price is $5.54 vs Future cash flow value of $8.63
Current Discount Checks
For Harmonic to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Harmonic's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Harmonic's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Harmonic's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Harmonic's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:HLIT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.25
NasdaqGS:HLIT Share Price ** NasdaqGS (2019-03-22) in USD $5.54
United States of America Communications Industry PE Ratio Median Figure of 34 Publicly-Listed Communications Companies 29.74x
United States of America Market PE Ratio Median Figure of 3,062 Publicly-Listed Companies 17.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Harmonic.

NasdaqGS:HLIT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:HLIT Share Price ÷ EPS (both in USD)

= 5.54 ÷ -0.25

-22.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Harmonic is loss making, we can't compare its value to the US Communications industry average.
  • Harmonic is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Harmonic's expected growth come at a high price?
Raw Data
NasdaqGS:HLIT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -22.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
45.6%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Harmonic, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Harmonic's assets?
Raw Data
NasdaqGS:HLIT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.62
NasdaqGS:HLIT Share Price * NasdaqGS (2019-03-22) in USD $5.54
United States of America Communications Industry PB Ratio Median Figure of 68 Publicly-Listed Communications Companies 1.83x
United States of America Market PB Ratio Median Figure of 5,165 Publicly-Listed Companies 1.85x
NasdaqGS:HLIT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:HLIT Share Price ÷ Book Value per Share (both in USD)

= 5.54 ÷ 2.62

2.11x

* Primary Listing of Harmonic.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Harmonic is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Harmonic's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Harmonic has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
45.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Harmonic expected to grow at an attractive rate?
  • Unable to compare Harmonic's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Harmonic's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Harmonic's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:HLIT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:HLIT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 45.6%
NasdaqGS:HLIT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.6%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 14.8%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:HLIT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:HLIT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 504 1
2022-12-31 477 1
2021-12-31 453 1
2020-12-31 445 31 -8 5
2019-12-31 409 18 -21 6
NasdaqGS:HLIT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 404 12 -21
2018-09-28 391 15 -36
2018-06-29 382 4 -44
2018-03-30 365 0 -73
2017-12-31 358 3 -83
2017-09-29 370 7 -82
2017-06-30 380 11 -82
2017-03-31 407 3 -71
2016-12-31 406 0 -72
2016-09-30 379 -15 -69
2016-07-01 361 -16 -58
2016-04-01 355 -1 -38

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Harmonic is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Harmonic's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:HLIT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Harmonic Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HLIT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 -0.09 -0.05 -0.12 2.00
2019-12-31 -0.23 -0.18 -0.27 3.00
NasdaqGS:HLIT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.25
2018-09-28 -0.43
2018-06-29 -0.53
2018-03-30 -0.89
2017-12-31 -1.02
2017-09-29 -1.02
2017-06-30 -1.03
2017-03-31 -0.91
2016-12-31 -0.93
2016-09-30 -0.87
2016-07-01 -0.71
2016-04-01 -0.45

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Harmonic will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Harmonic's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Harmonic has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Harmonic performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Harmonic's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Harmonic does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Harmonic's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Harmonic's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
Harmonic's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Harmonic Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HLIT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 403.56 -21.04 118.95 89.16
2018-09-28 390.88 -36.21 118.30 90.00
2018-06-29 382.28 -44.04 119.70 89.03
2018-03-30 365.43 -72.62 124.33 94.55
2017-12-31 358.25 -82.96 127.80 95.97
2017-09-29 370.37 -81.55 132.70 97.08
2017-06-30 379.77 -81.98 132.80 99.84
2017-03-31 407.02 -71.16 134.22 98.80
2016-12-31 405.91 -72.31 129.47 97.43
2016-09-30 379.41 -69.07 124.66 95.29
2016-07-01 361.31 -57.87 122.41 92.92
2016-04-01 354.84 -38.18 119.65 88.73
2015-12-31 377.03 -15.66 120.96 87.55
2015-10-02 398.30 -13.32 124.13 88.71
2015-07-03 423.06 -7.43 127.27 89.83
2015-04-03 429.54 -43.50 128.97 91.50
2014-12-31 433.56 -46.25 131.32 93.06
2014-09-26 445.90 -43.57 132.43 94.48
2014-06-27 460.76 -7.98 132.85 96.24
2014-03-28 468.30 25.68 134.29 98.58
2013-12-31 461.94 21.59 134.01 99.94
2013-09-27 459.70 24.66 133.48 101.05
2013-06-28 457.17 -16.49 132.08 102.08
2013-03-29 462.10 -16.96 128.98 101.12
2012-12-31 476.87 -16.19 127.12 102.63
2012-09-28 502.52 -12.75 126.58 102.49
2012-06-29 521.00 -4.74 127.70 102.54
2012-03-30 532.94 -0.47 128.91 103.35

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Harmonic has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Harmonic has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Harmonic improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Harmonic's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Harmonic has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Harmonic's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Harmonic's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Harmonic is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Harmonic's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Harmonic's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Harmonic Company Filings, last reported 2 months ago.

NasdaqGS:HLIT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 228.25 134.67 65.99
2018-09-28 223.03 134.06 61.65
2018-06-29 220.74 127.74 54.10
2018-03-30 225.97 133.18 52.05
2017-12-31 218.34 131.69 57.02
2017-09-29 220.60 130.19 50.04
2017-06-30 227.58 122.36 52.89
2017-03-31 251.41 125.14 55.29
2016-12-31 270.64 124.45 62.56
2016-09-30 281.45 124.74 52.67
2016-07-01 292.08 124.73 65.28
2016-04-01 311.27 124.79 76.23
2015-12-31 328.17 98.30 152.79
2015-10-02 359.87 0.00 87.56
2015-07-03 371.22 0.00 105.08
2015-04-03 371.52 0.00 101.86
2014-12-31 371.81 0.00 104.88
2014-09-26 380.15 0.00 97.18
2014-06-27 404.81 0.00 134.41
2014-03-28 462.48 0.00 147.74
2013-12-31 494.17 0.00 170.58
2013-09-27 505.51 0.00 169.30
2013-06-28 469.52 0.00 161.68
2013-03-29 556.06 0.00 228.25
2012-12-31 553.41 0.00 201.18
2012-09-28 553.31 0.00 191.98
2012-06-29 561.04 0.00 177.80
2012-03-30 564.12 0.00 168.46
  • Harmonic's level of debt (59%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 59% today).
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.

  • Whilst loss making Harmonic has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Harmonic has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -68.4% per year.
X
Financial health checks
We assess Harmonic's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Harmonic has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Harmonic dividends.
If you bought $2,000 of Harmonic shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Harmonic's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Harmonic's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:HLIT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:HLIT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Harmonic has not reported any payouts.
  • Unable to verify if Harmonic's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Harmonic's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Harmonic has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Harmonic's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Harmonic afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Harmonic has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Patrick Harshman
COMPENSATION $2,476,945
AGE 53
TENURE AS CEO 12.8 years
CEO Bio

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 delivery infrastructure and overseen the rapid expansion of its customer base, international presence and video product portfolio. He joined Harmonic Inc. in 1993 and served as President of its Broadband Access Networks Division from January 2001 to July 1, 2005. He served as President of the Convergent Systems division of Harmonic since July 1, 2005 and its Executive Vice President of consolidated research and development marketing and manufacturing division from January 1, 2006 to May 4, 2006. Over the last eight years, Dr. Harshman had management responsibilities for Harmonic’s digital video and fiber optic transmission product lines. He served as Vice President of Marketing for digital video and fiber optic transmission division of Harmonic Inc. He served as Director of Product Line Management of Digital Systems. He has been a Director of Harmonic Inc. since May 4, 2006. Dr. Harshman received a Ph.D. in Electrical Engineering from the University of California, Berkeley, where his graduate research focused on Nonlinear Optical Phenomena in Optical Communication Systems and completed an Executive Management Program at Stanford University. He also holds a B.S. in Electrical Engineering from the University of Florida.

CEO Compensation
  • Patrick's compensation has increased whilst company is loss making.
  • Patrick's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Harmonic management team in years:

4.7
Average Tenure
47.5
Average Age
  • The tenure for the Harmonic management team is about average.
Management Team

Patrick Harshman

TITLE
President
COMPENSATION
$2M
AGE
53
TENURE
12.8 yrs

Sanjay Kalra

TITLE
Senior VP
COMPENSATION
$920K
AGE
45
TENURE
1.8 yrs

Neven Haltmayer

TITLE
Senior Vice President of R&D - Video Business
COMPENSATION
$977K
AGE
53
TENURE
8 yrs

Nimrod Ben-Natan

TITLE
Senior VP & GM of Cable Access Business
COMPENSATION
$1M
AGE
50
TENURE
6.8 yrs

Tim Chu

TITLE
General Counsel
AGE
45
TENURE
5.4 yrs

Shahar Bar

TITLE
Senior Vice President of Corporate Development

Alex Derecho

TITLE
Senior Vice President of Global Service & Support
TENURE
3.9 yrs

Jeremy Rosenberg

TITLE
Senior Vice President of Business Development
TENURE
2.2 yrs

Tim Warren

TITLE
Senior VP & CTO of Video Business
AGE
45
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Harmonic board of directors in years:

6.3
Average Tenure
58
Average Age
  • The tenure for the Harmonic board of directors is about average.
Board of Directors

Pat Gallagher

TITLE
Chairman of the Board
COMPENSATION
$210K
AGE
63
TENURE
5.9 yrs

Patrick Harshman

TITLE
President
COMPENSATION
$2M
AGE
53
TENURE
12.8 yrs

E. Kvamme

TITLE
Director
COMPENSATION
$179K
AGE
80
TENURE
29.2 yrs

Susan Swenson

TITLE
Director
COMPENSATION
$182K
AGE
69
TENURE
7.1 yrs

Nikos Theodosopoulos

TITLE
Director
COMPENSATION
$187K
AGE
55
TENURE
4 yrs

Mitzi Reaugh

TITLE
Director
COMPENSATION
$164K
AGE
40
TENURE
6.7 yrs

David Krall

TITLE
Director
AGE
58
TENURE
1.1 yrs

Deborah Clifford

TITLE
Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. May 18 Buy William Reddersen Individual 21. May 18 21. May 18 5,000 $3.99 $19,956
09. May 18 Buy Mitzi Reaugh Individual 08. May 18 08. May 18 5,500 $3.64 $20,040
07. May 18 Buy E. Kvamme Individual 07. May 18 07. May 18 20,000 $3.70 $74,000
X
Management checks
We assess Harmonic's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Harmonic has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

If You Had Bought Harmonic (NASDAQ:HLIT) Shares Three Years Ago You'd Have Made 76%

Harmonic isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Shareholders of unprofitable companies usually expect strong revenue growth. … The modest growth is probably broadly reflected in the share price, which is up 21%, per year over 3 years.

Simply Wall St -

Does Market Volatility Impact Harmonic Inc.'s (NASDAQ:HLIT) Share Price?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Can We See Significant Institutional Ownership On The Harmonic Inc. (NASDAQ:HLIT) Share Register?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Companies that have been privatized tend to have low insider ownership. … Harmonic is not a large company by global standards.

Simply Wall St -

How Much Did Harmonic Inc.'s (NASDAQ:HLIT) CEO Pocket Last Year?

Patrick Harshman has been the CEO of Harmonic Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Patrick Harshman's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Have Insiders Been Buying Harmonic Inc. (NASDAQ:HLIT) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in Harmonic Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … In any event it's generally a positive if insiders are buying shares at around the current price.

Simply Wall St -

What does Harmonic Inc's (NASDAQ:HLIT) Balance Sheet Tell Us About Its Future?

While small-cap stocks, such as Harmonic Inc (NASDAQ:HLIT) with its market cap of US$485m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Who Are The Top Investors In Harmonic Inc (NASDAQ:HLIT)?

In this article, I will take a quick look at Harmonic Inc’s (NASDAQ:HLIT) recent ownership structure – an unconventional investing subject, but an important one. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

When Can We Expect A Profit From Harmonic Inc (NASDAQ:HLIT)?

The US$370.69m market-cap company’s loss lessens since it announced a -US$82.95m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$72.62m, as it approaches breakeven? … The most pressing concern for investors is HLIT’s path to profitability – when will it breakeven. … I’ve put together a brief outline of industry analyst expectations for HLIT, its year of breakeven and its implied growth rate

Simply Wall St -

Estimating The Intrinsic Value Of Harmonic Inc (NASDAQ:HLIT)

by taking the expected future cash flows and discounting them to today's value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

A Look At The Fair Value Of Harmonic Inc (NASDAQ:HLIT)

5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $7.14 $35.60 $33.55 $31.62 $29.80 Source Analyst x2 Analyst x1 Extrapolated @ (-5.76%) Extrapolated @ (-5.76%) Extrapolated @ (-5.76%) Present Value Discounted @ 11.81% $6.39 $28.48 $24.00 $20.23 $17.06 Present Value of 5-year Cash Flow (PVCF)= $96 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $30 × (1 + 2.5%) ÷ (11.8% – 2.5%) = $327 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $327 / ( 1 + 11.8%)5 = $187 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $283. … NasdaqGS:HLIT Intrinsic Value Apr 30th 18 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Company Info

Description

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 services to consumer devices, including televisions, personal computers, laptops, tablets, and smart phones. The company operates in two segments, Video and Cable Access. The Video segment sells video processing, and production and playout solutions and services to cable operators, and satellite and telecommunications Pay-TV service providers, as well as to broadcast and media, including streaming media companies. This segment’s video processing solutions include network management and application software, and hardware products, such as cloud media processing, broadcast and over-the-top encoders, contribution encoders, high-density transcoders and stream processing, multiscreen delivery, decoders and descramblers, and video servers. This segment also provides video-optimized storage systems; and unified video playout and processing software-as-a-service solutions. The Cable Access segment offers cable edge solutions and related services, including CableOS software-based cable access solutions; and narrowcast services gateway products primarily to cable operators. The company also provides technical support and professional services, such as maintenance and support, consulting, implementation, program management, technical design and planning, building and site preparation, integration and equipment installation, system testing, and training. Harmonic Inc. sells its products through its direct sales force, as well as through independent resellers and systems integrators. The company was founded in 1988 and is headquartered in San Jose, California.

Details
Name: Harmonic Inc.
HLIT
Exchange: NasdaqGS
Founded: 1988
$491,279,998
88,678,700
Website: http://www.harmonicinc.com
Address: Harmonic Inc.
4300 North First Street,
San Jose,
California, 95134,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HLIT Common Stock Nasdaq Global Select US USD 23. May 1995
DB HMC Common Stock Deutsche Boerse AG DE EUR 23. May 1995
LSE 0J38 Common Stock London Stock Exchange GB USD 23. May 1995
Number of employees
Current staff
Staff numbers
1,162
Harmonic employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 23:37
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/02/20
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.