HLITHarmonic Inc.

$12.44

Is the business good?

How good a business is HLIT?

Harmonic Inc. earns 5.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

5.4%

Return on invested capital · cost of capital 9.0% · 3.6 points below what the capital costs: growth destroys value

Share count, year on year
−5.5%

Share count, year on year · bought back, each share owns more of the company

Operating margin by fiscal year
YearOperating margin
FY2020−3.3%
FY20213.7%
FY20227.3%
FY20237.7%
FY202415%
FY20253.9%
Details
Free cash flow, trailing twelve months
$45M
Net income, trailing twelve months
−$42M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
5.4%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.