(HLIT) Harmonic - NASDAQ
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 1.591m USD | Total Return: 60.5% in 12m
Avg Turnover: 50.1M
EPS Trend: 38.5%
Qual. Beats: 1
Rev. Trend: -24.9%
Qual. Beats: 0
Warnings
P/E ratio 183.2
Altman Z'' -5.83 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Rs Leader, Confidence
Harmonic Inc. (HLIT) is a U.S.-based provider of broadband access solutions for cable and telco operators worldwide. Its offerings center on a software-based platform called cOS, delivered as a virtualized, cloud-native solution, alongside a hardware portfolio that includes Distributed Access Architecture (DAA) nodes, Remote PHY devices, and OLT modules for fiber networks. The company also generates recurring revenue through cOS Central cloud services, a subscription offering, and provides technical support, consulting, integration, and professional services. Harmonic sells through a direct sales force as well as independent resellers and systems integrators. The company was founded in 1988 and is headquartered in San Jose, California, and trades on NASDAQ as a small-cap stock in the Information Technology sector.
Harmonic operates within the Communications Equipment sub-industry, serving broadband service providers that supply internet, video, and voice services. Its product line addresses two converging infrastructure trends in the cable industry: the shift toward DAA and virtualized headends, which push data processing closer to subscribers and replace traditional CMTS/CCAP hardware with software-centric, fiber-deep architectures, and the deployment of next-generation fiber-to-the-home (FTTH) networks. The combination of hardware sales, software licensing, and subscription cloud services gives Harmonic exposure to both one-time equipment spending and recurring service revenue from operator customers.
- DOCSIS 4.0 upgrade cycle boosts cable broadband orders
- cOS software subscriptions expand recurring revenue base
- Telco fiber buildouts drive OLT module demand
| 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 (48.9m): 0.85 < 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 54.90%; Δ -4.41% > 0.5%) |
| Asset Turnover: 67.66% > 50% (prev 89.15%; Δ -21.49% > 0%) |
| Interest Coverage Ratio: 9.79 > 6 (EBIT TTM 38.3m / 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: 0.05 (EBIT TTM 38.3m / Avg Total Assets 739.5m) |
| D: 1.01 (Book Value of Equity 355.2m / Total Liabilities 350.2m) |
| Altman-Z'' = -5.83 = D |
| DSRI: 1.13 (Receivables 85.3m/104.3m, Revenue 500.3m/689.8m) |
| GMI: 1.09 (GM 54.90% / 50.49%) |
| 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 = -3.34 (Cap -4..+1) = AA |
As of June 26, 2026, the stock is trading at USD 14.85 with a total of 1,646,778 shares traded. Over the past week, the price has changed by +0.00%, over one month by -12.13%, over three months by +56.15% and over the past year by +60.54%.
Current recommended Stop Loss: 13.80 (which is 7.1% or 1.2 ATR below the current price).
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 | 3% |
P/E Trailing = 183.25
P/E Forward = 18.8324
P/S = 4.003
P/B = 4.564
P/EG = 1.8405
Revenue TTM = 500.3m USD
EBIT TTM = 38.3m USD
EBITDA TTM = 48.9m 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 = 1.63b USD (1.59b + Debt 150.8m - CCE 109.0m)
Interest Coverage Ratio = 9.79 (Ebit TTM 38.3m / Interest Expense TTM 3.91m)
EV/FCF = 35.92x (Enterprise Value 1.63b / FCF TTM 45.4m)
FCF Yield = 2.78% (FCF TTM 45.4m / Enterprise Value 1.63b)
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 = 2.31 (Enterprise Value 1.63b / Total Assets 705.3m)
Interest Expense / Debt = 2.60% (Interest Expense 3.91m / Debt 150.8m)
Taxrate = 43.01% (14.8m / 34.4m)
NOPAT = 21.8m (EBIT 38.3m * (1 - 43.01%))
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 = 0.85 (Net Debt 41.8m / EBITDA 48.9m)
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 = -10.31% (Net Income TTM -41.9m / Total Stockholder Equity 407.0m)
RoCE = 7.43% (EBIT 38.3m / Capital Employed (Equity 407.0m + L.T.Debt 108.4m))
RoIC = 4.59% (NOPAT 21.8m / Invested Capital 475.4m)
WACC = 11.03% (E(1.59b)/V(1.74b) * Re(11.94%) + D(150.8m)/V(1.74b) * Rd(2.60%) * (1-Tc(0.43)))
Discount Rate = 11.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -37.78 | Cagr: -1.97%
[DCF] Terminal Value 63.78% ; FCFF base≈71.1m ; Y1≈62.3m ; Y5≈50.4m
[DCF] Fair Price = 4.79 (EV 562.0m - Net Debt 41.8m = Equity 520.2m / Shares 108.5m; r=11.03% [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=+0.00% | 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=0.38 | Chg30d=+13.84% | Revisions=+14% | GrowthEPS=+200.9% | GrowthRev=+35.0%
EPS next Year (2027-12-31): EPS=0.78 | Chg30d=+0.00% | Revisions=+50% | GrowthEPS=+21.8% | GrowthRev=+12.7%
[Analyst] Revisions Ratio: +60%