Harmonic, Inc. (HLIT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Harmonic, Inc.

Why is Harmonic, Inc. ?

With a fall in Net Sales of -42.56%, the company declared Very Negative results in Dec 25

ROCE(HY) Lowest at 2.76%
RAW MATERIAL COST(Y) Grown by 14.43% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 3.82 times

With ROCE of 8.20%, it has a very expensive valuation with a 2.75 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 -13.38%, its profits have fallen by -78.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.38% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Harmonic, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Harmonic, Inc.

-13.38%

-0.52

38.51%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

1.12

Tax Ratio

30.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

10.04%

ROE (avg)

10.69%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.73

EV to EBIT

33.58

EV to EBITDA

24.91

EV to Capital Employed

2.75

EV to Sales

2.03

PEG Ratio

Dividend Yield

ROCE (Latest)

8.20%

ROE (Latest)

3.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 107.96 MM

DEBT-EQUITY RATIO (HY)

Lowest at 2.37 %

-34What is not working for the Company

ROCE(HY)

Lowest at 2.76%

RAW MATERIAL COST(Y)

Grown by 14.43% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.82 times

NET SALES(Q)

Lowest at USD 98.23 MM

OPERATING PROFIT(Q)

Lowest at USD 6.33 MM

PRE-TAX PROFIT(Q)

Lowest at USD 3.32 MM

NET PROFIT(Q)

Lowest at USD 0.22 MM

EPS(Q)

Lowest at USD -0.49

Here's what is working for Harmonic, Inc.

Operating Cash Flow

Highest at USD 107.96 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 2.37 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Harmonic, Inc.

Net Sales

At USD 98.23 MM has Fallen at -55.78%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (USD MM)

Pre-Tax Profit

At USD 3.32 MM has Fallen at -94.26%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.22 MM has Fallen at -99.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 98.23 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 6.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 3.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 0.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD -0.49

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 3.82 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 14.43% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales