(HLIT) Harmonic - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 1.649m USD | Total Return: 66.3% in 12m
Avg Turnover: 23.1M
EPS Trend: 38.5%
Qual. Beats: 1
Rev. Trend: -24.9%
Qual. Beats: 0
Warnings
P/E ratio 190.0
Altman Z'' -13.23 < 1.0 - financial distress zone
Overextended 3d
Tailwinds
Rs Leader, Tailwind, Confidence
Harmonic Inc. (HLIT) specializes in software-based broadband access solutions and virtualization technology for cable and telecommunications operators. Its core product suite, centered on the cOS cloud-native platform, enables service providers to transition from traditional hardware-centric architectures to more flexible, software-defined networks. The company’s hardware portfolio includes Distributed Access Architecture (DAA) nodes, PHY shelf products, and OLT modules designed to optimize network capacity and performance.
The company operates within the Communications Equipment sector, where the industry-wide shift toward Virtualized Cable Modem Termination Systems (vCMTS) is currently driving infrastructure upgrades. Harmonic’s business model combines hardware sales with recurring revenue streams through cOS Central cloud subscriptions and comprehensive technical support services. This hybrid approach addresses the increasing global demand for high-speed data transmission and network scalability.
For a more detailed analysis of these revenue streams, investors can explore the data available on ValueRay. Harmonic was incorporated in 1988 and maintains its headquarters in San Jose, California, distributing its technology through direct sales channels and global systems integrators.
- Broadband operator adoption of virtualized cloud-native software drives recurring revenue growth
- Cable industry migration to Distributed Access Architecture increases hardware and node demand
- Customer concentration risks persist with major Tier 1 service provider contracts
- Supply chain disruptions and component costs impact gross margins for hardware products
- Expansion into fiber-to-the-home markets creates new long-term infrastructure revenue streams
| Net Income: -41.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -7.72 > 1.0 |
| NWC/Revenue: 54.17% < 20% (prev 25.44%; Δ 28.73% < -1%) |
| CFO/TA 0.08 > 3% & CFO 56.1m > Net Income -41.9m |
| Net Debt (41.8m) to EBITDA (51.9m): 0.80 < 3 |
| Current Ratio: 2.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (110.6m) vs 12m ago -5.47% < -2% |
| Gross Margin: 50.49% > 18% (prev 0.55%; Δ 4.99k% > 0.5%) |
| Asset Turnover: 67.66% > 50% (prev 89.15%; Δ -21.49% > 0%) |
| Interest Coverage Ratio: 10.55 > 6 (EBITDA TTM 51.9m / Interest Expense TTM 3.91m) |
| A: 0.38 (Total Current Assets 485.3m - Total Current Liabilities 214.2m) / Total Assets 705.3m |
| B: -2.99 (Retained Earnings -2.11b / Total Assets 705.3m) |
| C: 0.06 (EBIT TTM 41.3m / Avg Total Assets 739.5m) |
| D: -6.06 (Book Value of Equity -2.12b / Total Liabilities 350.2m) |
| Altman-Z'' = -13.23 = D |
| DSRI: 1.10 (Receivables 83.5m/104.3m, Revenue 500.3m/689.8m) |
| GMI: 1.10 (GM 50.49% / 55.29%) |
| AQI: 0.51 (AQ_t 0.26 / AQ_t-1 0.51) |
| SGI: 0.73 (Revenue 500.3m / 689.8m) |
| TATA: -0.14 (NI -41.9m - CFO 56.1m) / TA 705.3m) |
| Beneish M = -3.49 (Cap -4..+1) = AA |
As of May 27, 2026, the stock is trading at USD 15.20 with a total of 12,679,000 shares traded.
Over the past week, the price has changed by +21.21%,
over one month by +44.90%,
over three months by +47.00% and
over the past year by +66.30%.
Harmonic has received a consensus analysts rating of 3.57. Therefore, it is recommended to hold HLIT.
- StrongBuy: 2
- Buy: 2
- Hold: 2
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 15.3 | 0.6% |
P/E Trailing = 190.0
P/E Forward = 18.8324
P/S = 4.1505
P/B = 3.8797
P/EG = 1.8405
Revenue TTM = 500.3m USD
EBIT TTM = 41.3m USD
EBITDA TTM = 51.9m USD
Long Term Debt = 108.4m USD (from longTermDebt, last quarter)
Short Term Debt = 9.36m USD (from shortTermDebt, last quarter)
Debt = 150.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 19.7m
Net Debt = 41.8m USD (calculated: Debt 150.8m - CCE 109.0m)
Enterprise Value = 1.69b USD (1.65b + Debt 150.8m - CCE 109.0m)
Interest Coverage Ratio = 10.55 (Ebit TTM 41.3m / Interest Expense TTM 3.91m)
EV/FCF = 37.21x (Enterprise Value 1.69b / FCF TTM 45.4m)
FCF Yield = 2.69% (FCF TTM 45.4m / Enterprise Value 1.69b)
FCF Margin = 9.08% (FCF TTM 45.4m / Revenue TTM 500.3m)
Net Margin = -8.38% (Net Income TTM -41.9m / Revenue TTM 500.3m)
Gross Margin = 50.49% ((Revenue TTM 500.3m - Cost of Revenue TTM 247.7m) / Revenue TTM)
Gross Margin QoQ = 52.27% (prev 44.37%)
Tobins Q-Ratio = 2.40 (Enterprise Value 1.69b / Total Assets 705.3m)
Interest Expense / Debt = 2.60% (Interest Expense 3.91m / Debt 150.8m)
Taxrate = 41.92% (8.10m / 19.3m)
NOPAT = 24.0m (EBIT 41.3m * (1 - 41.92%))
Current Ratio = 2.26 (Total Current Assets 485.3m / Total Current Liabilities 214.2m)
Debt / Equity = 0.42 (Debt 150.8m / totalStockholderEquity, last quarter 355.2m)
Debt / EBITDA = 0.80 (Net Debt 41.8m / EBITDA 51.9m)
Debt / FCF = 0.92 (Net Debt 41.8m / FCF TTM 45.4m)
Total Stockholder Equity = 407.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -5.67% (Net Income -41.9m / Total Assets 705.3m)
RoE = -1.66% (Net Income TTM -41.9m / Total Stockholder Equity 2.52b)
RoCE = 1.57% (EBIT 41.3m / Capital Employed (Equity 2.52b + L.T.Debt 108.4m))
RoIC = 5.25% (NOPAT 24.0m / Invested Capital 456.8m)
WACC = 10.54% (E(1.65b)/V(1.80b) * Re(11.37%) + D(150.8m)/V(1.80b) * Rd(2.60%) * (1-Tc(0.42)))
Discount Rate = 11.37% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -37.78 | Cagr: -1.97%
[DCF] Terminal Value 65.37% ; FCFF base≈71.1m ; Y1≈62.3m ; Y5≈50.4m
[DCF] Fair Price = 5.10 (EV 594.8m - Net Debt 41.8m = Equity 553.0m / Shares 108.5m; r=10.54% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 38.47 | EPS CAGR: 34.09% | SUE: 1.15 | # QB: 1
Revenue Correlation: -24.94 | Revenue CAGR: -2.93% | SUE: 0.27 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.17 | Chg30d=+40.33% | Revisions=+60% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.10 | Chg30d=+3.64% | Revisions=-14% | Analysts=3
EPS current Year (2026-12-31): EPS=0.64 | Chg30d=+13.31% | Revisions=+60% | GrowthEPS=+35.8% | GrowthRev=+35.0%
EPS next Year (2027-12-31): EPS=0.78 | Chg30d=+7.07% | Revisions=+50% | GrowthEPS=+21.8% | GrowthRev=+12.7%
[Analyst] Revisions Ratio: +60%