ScoreWhy is Harmonic, Inc. ?
1
The company is Net-Debt Free
2
Healthy long term growth as Operating profit has grown by an annual rate 40.26%
3
Flat results in Mar 26
- NET PROFIT(HY) At USD 9.87 MM has Grown at -76.12%
- NET SALES(HY) At USD 219.93 MM has Grown at -14.06%
- ROCE(HY) Lowest at 3.85%
4
With ROCE of 8.21%, it has a very expensive valuation with a 2.73 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 71.56%, its profits have fallen by -78.4%
5
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Market Beating Performance
- The stock has generated a return of 71.56% in the last 1 year, much higher than market (S&P 500) returns of 25.41%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Harmonic, Inc. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Harmonic, Inc. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Harmonic, Inc.
71.56%
0.73
46.45%
S&P 500
25.41%
1.92
13.25%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.20%
EBIT Growth (5y)
40.26%
EBIT to Interest (avg)
6.40
Debt to EBITDA (avg)
1.71
Net Debt to Equity (avg)
-0.03
Sales to Capital Employed (avg)
1.08
Tax Ratio
30.81%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
10.04%
ROE (avg)
10.69%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
72
Industry P/E
Price to Book Value
2.70
EV to EBIT
33.21
EV to EBITDA
24.61
EV to Capital Employed
2.73
EV to Sales
2.01
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
8.21%
ROE (Latest)
3.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bearish
Moving Averages
Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 4.42 times
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
NET SALES(Q)
At USD 121.69 MM has Grown at 43.38%
OPERATING PROFIT(Q)
Highest at USD 22.97 MM
OPERATING PROFIT MARGIN(Q)
Highest at 18.88 %
PRE-TAX PROFIT(Q)
Highest at USD 19.33 MM
NET PROFIT(Q)
Highest at USD 9.65 MM
EPS(Q)
Highest at USD 0.07
-16What is not working for the Company
NET PROFIT(HY)
At USD 9.87 MM has Grown at -76.12%
NET SALES(HY)
At USD 219.93 MM has Grown at -14.06%
ROCE(HY)
Lowest at 3.85%
INTEREST(Q)
At USD 1.08 MM has Grown at 171.79%
Here's what is working for Harmonic, Inc.
Pre-Tax Profit
At USD 19.33 MM has Grown at 278.68%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 9.65 MM has Grown at 307.26%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Inventory Turnover Ratio
Highest at 4.42 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
At USD 121.69 MM has Grown at 43.38%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 22.97 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 18.88 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 19.33 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 9.65 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.07
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Here's what is not working for Harmonic, Inc.
Interest
At USD 1.08 MM has Grown at 171.79%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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