Harmonic Inc (HLIT, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $1.46 billion, with a current price of $13.04 per share. Over the past week, Harmonic's stock has seen a 5.50% gain, and looking at the past three months, the stock has surged by an impressive 35.41%. According to GuruFocus's valuation metrics, Harmonic is currently fairly valued at $13.51, a slight increase from being modestly undervalued three months ago at $11.91. This valuation suggests that the stock price is aligned with the company's intrinsic value, as calculated by GuruFocus.
Introduction to Harmonic Inc
Harmonic Inc, operating within the hardware industry, specializes in video infrastructure products and system solutions. The company's offerings are critical for cable operators, satellite, and telecommunications providers to deliver video and broadband services to consumer devices. Harmonic operates through two segments: Video and Broadband, with the majority of its revenue generated from the United States. The company's recent stock performance reflects investor confidence in its business model and market position.
Assessing Harmonic's Profitability
Harmonic's Profitability Rank stands at 4/10, indicating moderate profitability relative to other companies. The company's Operating Margin is 5.13%, which is better than 57.32% of its industry peers. In terms of return on equity, Harmonic's ROE is 1.91%, surpassing 39.77% of competitors. The ROA at 0.90% and ROIC at 1.29% also indicate that Harmonic is performing better than 41.29% and 40.15% of its industry counterparts, respectively. Over the past decade, Harmonic has achieved profitability in 3 years, which is more favorable than 13.21% of the companies in the industry.
Growth Trajectory of Harmonic
Harmonic's Growth Rank is currently at 3/10, reflecting a modest growth profile. The company's 3-year revenue growth rate per share stands at 7.30%, which is commendable as it is higher than 58.37% of its industry peers. Over a 5-year period, the revenue growth rate per share is 3.00%, surpassing 50.44% of competitors. A standout metric is the 3-year EPS without NRI growth rate, which is an extraordinary 141.90%, placing Harmonic ahead of 97.44% of its industry peers. This indicates that the company has been successful in significantly increasing its earnings per share over the past three years.
Key Shareholders in Harmonic
Notable investors have taken positions in Harmonic, demonstrating their confidence in the company's prospects. Chuck Royce (Trades, Portfolio) holds 785,358 shares, representing a 0.7% share percentage. Paul Tudor Jones (Trades, Portfolio) has invested in 224,305 shares, accounting for a 0.2% stake. Additionally, Jim Simons (Trades, Portfolio) owns 194,127 shares, which equates to a 0.17% share percentage. These significant shareholders reflect a diverse and strategic investment interest in Harmonic.
Competitive Landscape
When compared to its closest competitors, Harmonic stands strong in the market. EchoStar Corp (SATS, Financial) has a market cap of $1.39 billion, slightly less than Harmonic's. Knowles Corp (KN, Financial), with a market cap of $1.62 billion, and Infinera Corp (INFN, Financial), valued at $1.08 billion, also form part of the competitive landscape. Harmonic's recent stock performance and valuation suggest that it is holding its own in this competitive environment.
Conclusion
In summary, Harmonic Inc's stock performance has been robust, with a significant 35.41% gain over the past three months, and the company is currently fairly valued according to GuruFocus metrics. The company's profitability and growth have been moderate but show signs of strength, particularly in EPS growth. The presence of notable shareholders like Chuck Royce (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Jim Simons (Trades, Portfolio) indicates a level of investor confidence in Harmonic's future. When juxtaposed with its competitors, Harmonic's market position appears stable, suggesting potential for continued investor interest and stock performance in the future.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
