Harmonic Story

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HLIT -- USA Stock  

USD 8.17  0.39  5.01%

As many millenniums are excited about technology space, it is only fair to review Harmonic. We will evaluate why we are still confident in anticipation of a recovery. Is the stock valuation justified? Here I will cover 2021 perspective on the current valuation of Harmonic to give you a better outlook on taking a possible position in this stock.
Published over a month ago
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Is Harmonic well positioned for March economic uncertainties?
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.

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

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 Margin4.03
EBITDA Margin0.0592
Gross Margin0.63
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.

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 Raphi 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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