Harmonic
Market Cap
US$653.9m
Last Updated
2020/12/02 23:45 UTC
Data Sources
Company Financials +
Executive Summary
Harmonic Inc., together with its subsidiaries, provide video delivery software, products, system solutions, and services worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
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
Stable Share Price: HLIT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: HLIT's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-0.7%
HLIT
2.6%
US Communications
0.7%
US Market
1 Year Return
-17.1%
HLIT
0.8%
US Communications
22.2%
US Market
Return vs Industry: HLIT underperformed the US Communications industry which returned -0.6% over the past year.
Return vs Market: HLIT underperformed the US Market which returned 22.7% over the past year.
Shareholder returns
| HLIT | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.7% | 2.6% | 0.7% |
| 30 Day | 10.8% | 20.1% | 11.8% |
| 90 Day | 18.6% | 7.6% | 8.6% |
| 1 Year | -17.1%-17.1% | 3.6%0.8% | 25.0%22.2% |
| 3 Year | 65.2%65.2% | 19.5%11.1% | 49.4%39.5% |
| 5 Year | 54.1%54.1% | 65.6%46.8% | 100.2%78.1% |
Long-Term 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
5 days ago | Simply Wall St
What Did Harmonic's (NASDAQ:HLIT) CEO Take Home Last Year?3 weeks ago | Simply Wall St
Is There An Opportunity With Harmonic Inc.'s (NASDAQ:HLIT) 24% Undervaluation?1 month ago | Simply Wall St
Should You Think About Buying Harmonic Inc. (NASDAQ:HLIT) Now?Valuation
Is Harmonic undervalued compared to its fair value and its price relative to the market?
45.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HLIT ($6.69) is trading below our estimate of fair value ($12.36)
Significantly Below Fair Value: HLIT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HLIT is unprofitable, so we can't compare its PE Ratio to the US 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
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 (1.8x).
Next Steps
Future Growth
How is Harmonic forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
122.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HLIT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: HLIT is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: HLIT's is expected to become profitable in the next 3 years.
Revenue vs Market: HLIT's revenue (14.6% per year) is forecast to grow faster than the US market (10.2% per year).
High Growth Revenue: HLIT's revenue (14.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HLIT's Return on Equity is forecast to be low in 3 years time (18.2%).
Next Steps
Past Performance
How has Harmonic performed over the past 5 years?
16.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HLIT is currently unprofitable.
Growing Profit Margin: HLIT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: HLIT is unprofitable, but has reduced losses over the past 5 years at a rate of 16.8% 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 (-4.9%).
Return on Equity
High ROE: HLIT has a negative Return on Equity (-15.85%), as it is currently unprofitable.
Next Steps
Financial Health
How is Harmonic's financial position?
Financial Position Analysis
Short Term Liabilities: HLIT's short term assets ($214.0M) exceed its short term liabilities ($145.8M).
Long Term Liabilities: HLIT's short term assets ($214.0M) exceed its long term liabilities ($179.2M).
Debt to Equity History and Analysis
Debt Level: HLIT's debt to equity ratio (67%) 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
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: Insufficient data to determine if HLIT has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Harmonic current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HLIT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HLIT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Patrick Harshman (55 yo)
14.58yrs
Tenure
US$3,375,050
Compensation
Dr. Patrick J. Harshman has been the Chief Executive Officer and President of Harmonic Inc. since May 4, 2006. Dr. Harshman has driven Harmonic’s strategic re-positioning as the worldwide leader in video d...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD3.38M) is about average for companies of similar size in the US market ($USD2.60M).
Compensation vs Earnings: Patrick's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.58yrs | US$3.38m | 1.05% $ 6.8m | |
| Senior VP & CFO | 3.5yrs | US$1.22m | 0.17% $ 1.1m | |
| Senior Vice President of R&D - Video Business | 9.75yrs | US$1.04m | 0.18% $ 1.2m | |
| Senior VP & GM of Cable Access Business | 8.5yrs | US$1.42m | 0.36% $ 2.4m | |
| Senior Vice President of Operations & IT | 1.92yrs | no data | no data | |
| Finance & Investor Relations Manager | no data | no data | no data | |
| General Counsel | 7.17yrs | no data | no data | |
| Senior Vice President of Corporate Marketing & Communications | 1.92yrs | no data | no data | |
| Senior Vice President of Global Sales & Video Services | 0.33yr | no data | 0.076% $ 494.9k | |
| Senior Vice President of Video Products & Corporate Development | no data | no data | no data | |
| Senior Vice President of Business Development | 3.92yrs | no data | no data | |
| Chief Technology Officer of Video Business | no data | US$904.51k | no data |
3.9yrs
Average Tenure
49.5yo
Average Age
Experienced Management: HLIT's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 14.58yrs | US$3.38m | 1.05% $ 6.8m | |
| Independent Director | 2.83yrs | US$166.09k | 0.073% $ 476.9k | |
| Independent Director | 8.83yrs | US$182.00k | 0.18% $ 1.2m | |
| Independent Chairman of the Board | 7.67yrs | US$209.50k | 0.23% $ 1.5m | |
| Independent Director | 5.75yrs | US$187.00k | 0.14% $ 940.4k | |
| Independent Director | 8.42yrs | US$169.14k | 0.22% $ 1.4m | |
| Independent Director | 2.17yrs | US$171.00k | 0.042% $ 275.0k |
7.7yrs
Average Tenure
57yo
Average Age
Experienced Board: HLIT's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.2%.
Top Shareholders
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$653.933m
- Shares outstanding: 97.75m
- Website: https://www.harmonicinc.com
Number of Employees
Location
- Harmonic Inc.
- 4300 North First Street
- San Jose
- California
- 95134
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HLIT | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | May 1995 |
| HMC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | May 1995 |
| 0J38 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | May 1995 |
Biography
Harmonic Inc., together with its subsidiaries, provide video delivery software, products, system solutions, and services worldwide. Its products enable customers to create, prepare, and deliver a range of ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/02 23:45 |
| End of Day Share Price | 2020/12/02 00:00 |
| Earnings | 2020/09/25 |
| Annual Earnings | 2019/12/31 |
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.