The company currently holds 187.67
M in liabilities with Debt to Equity (D/E) ratio of 0.8, which is about average as compared to similar companies. Harmonic has a current ratio of 1.44, which is within standard range for the sector. Harmonic is OVERVALUED at 6.93 per share with modest projections ahead.
We determine the current worth of Harmonic using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Harmonic based exclusively on its
fundamental and basic
technical indicators. By analyzing Harmonic's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Harmonic's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Harmonic. We calculate exposure to Harmonic's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Harmonic's related companies.
Harmonic Investment Alerts
Harmonic investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Harmonic performance across your portfolios.Please check all
investment alerts for Harmonic
Harmonic Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Harmonic value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Harmonic competition to find
correlations between indicators driving the intrinsic value of Harmonic.
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 Harmonic's
gross profit and other
fundamental indicators for more details.
Breaking down the case for Harmonic
The newest gain in Harmonic short term price appreciation may raise some interest from private investors. The stock closed today at a share price of
7.88 on
552,796 in trading volume. The company executives have successfully maneuvered the firm at convenient times to take advantage of all market conditions in
January. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.26. The current volatility is consistent with the ongoing market swings in
January 2021 as well as with Harmonic unsystematic, company-specific events.
Margins Breakdown
Harmonic profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Harmonic itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Harmonic profit margins.
| Operating Margin | 4.03 |
| EBITDA Margin | 0.0592 |
| Gross Margin | 0.63 |
| Profit Margin | (0.0146) |
Harmonic Earnings Before Interest Taxes and Depreciation Amortization EBITDA is comparatively stable at the moment. Moreover, Harmonic Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The previous year's value of Harmonic Earnings Before Interest Taxes and Depreciation Amortization USD was 23,947,129.
Some Harmonic technical indicators suggest correction
Variance is down to 58.65. It may call for a possible volatility drop. Harmonic is displaying above-average volatility over the selected time horizon. Investors should scrutinize Harmonic independently to ensure intended market timing strategies are aligned with expectations about Harmonic volatility.
The Current Takeaway on Harmonic Investment
Whereas many of the other players under the communication equipment industry are still a bit expensive, Harmonic may offer a potential longer-term growth to private investors. The bottom line, as of the 1st of February 2021, we believe that Harmonic is currently
overvalued with
quite high probability of bankruptcy in the next two years. Our primary 30 days buy-or-sell advice on the firm is
Cautious Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of Harmonic. Please refer to our
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