Harmonic Story

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HLIT -- USA Stock  

USD 7.74  0.43  5.26%

Harmonic Accounts Payable Turnover is comparatively stable at the moment as compared to the past year. Harmonic reported Accounts Payable Turnover of 12.40 in 2020. Operating Margin is likely to gain to 4.03 in 2021, whereas Enterprise Value is likely to drop slightly above 606.3 M in 2021. If you are looking to grow your portfolio over time, you may want to review all of the essential basic indicators of your selected equities before buying their shares. In this article, we will review Harmonic. We will analyze why Harmonic investors may still consider a stake in the business. Will private investors continue to hold, or should we expect a sell-off?
Published over three weeks ago
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Does Harmonic (NASDAQ:HLIT) have stable basic indicators based on the newest gain?
Harmonic is OVERVALUED at 7.36 per share with modest projections ahead. Harmonic appears to be somewhat reliable, given 1 month investment horizon. Harmonic holds Efficiency (Sharpe) Ratio of 0.19, which attests that the entity had 0.19% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Harmonic, which you can use to evaluate future volatility of the firm. Please utilize Harmonic risk adjusted performance of (0.06), and Market Risk Adjusted Performance of (0.54) to validate if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Harmonic income statement, its balance sheet, and the statement of cash flows. Potential Harmonic investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Harmonic investors may use each financial statement separately, they are all related. The changes in Harmonic's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Harmonic's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Harmonic fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Harmonic performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Harmonic shares is the value that is considered the true value of the share. If the intrinsic value Harmonic is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Harmonic.
Please read more on our fundamental analysis page.

Are Harmonic Earnings Expected to grow?

The future earnings power of Harmonic involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Harmonic factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Harmonic stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Harmonic expected earnings.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Harmonic, but it might be worth checking our own buy vs. sell analysis

Harmonic Gross Profit

Harmonic Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Harmonic previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Harmonic Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

A Deeper look at Harmonic

There are few distinct groups of Harmonic stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Harmonic is distributed among investors.

Ownership Allocation

Harmonic secures a total of 97.75 Million outstanding shares. The majority of Harmonic outstanding shares are owned by outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Harmonic to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Harmonic. Please pay attention to any change in the institutional holdings of Harmonic as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.

Retail Investors
Retail Investors5.65
 2018 2019 2020 2021 (projected)
Revenues USD403.56 M402.87 M362.59 M369.12 M
Revenues403.56 M402.87 M362.59 M369.12 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Harmonic has an asset utilization ratio of 70.38 percent. This implies that the company is making $0.7 for each dollar of assets. An increasing asset utilization means that Harmonic is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
237.9 M
Assets Non Current
290.6 M
223.9 M
Current Assets237.87 Million31.49
Assets Non Current290.61 Million38.47
Goodwill223.85 Million29.63
Tax Assets3.12 Million0.41

Another small drop for Harmonic

The treynor ratio is down to -0.55 as of today. As of the 31st of January, Harmonic retains the market risk adjusted performance of (0.54), and Risk Adjusted Performance of (0.06). Harmonic technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Harmonic, which can be compared to its competitors. Please check out Harmonic variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Harmonic is priced fairly, providing market reflects its last-minute price of 7.76 per share. Given that Harmonic has jensen alpha of (0.78), we strongly advise you to confirm Harmonic's regular market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Harmonic Investment

Whereas many other companies under the communication equipment industry are still a bit expensive, Harmonic may offer a potential longer-term growth to private investors. To conclude, as of the 31st of January 2021, we believe that Harmonic is currently overvalued with quite high odds of financial turmoil in the next two years. Our present 30 days 'Buy-vs-Sell' recommendation on the firm is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Harmonic. Please refer to our Terms of Use for any information regarding our disclosure principles.

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