HLITHarmonic Inc.
Is the business good?
The checks split: margins widening, but thin cash backing (0.3×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HLIT?
Harmonic Inc. earns 15% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 5.6 points above what the capital costs: growth creates value
- Cash conversion
- 0.28×
Cash conversion · 1.68× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −3.3%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −3.3% |
| FY2021 | 3.7% |
| FY2022 | 7.3% |
| FY2023 | 7.7% |
| FY2024 | 15% |
| FY2025 | 3.9% |
Details›
- Free cash flow, trailing twelve months
- $1.4M
- Net income, trailing twelve months
- −$47M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 15%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.