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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 1.04
HAR's Cash to Debt is ranked higher than
51% of the 2580 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.37 vs. HAR: 1.04 )
HAR' s 10-Year Cash to Debt Range
Min: 0   Max: 2.42
Current: 1.04

0
2.42
Equity to Asset 0.44
HAR's Equity to Asset is ranked lower than
54% of the 2566 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.56 vs. HAR: 0.44 )
HAR' s 10-Year Equity to Asset Range
Min: 0.33   Max: 0.6
Current: 0.44

0.33
0.6
F-Score: 6
Z-Score: 4.39
M-Score: -2.63
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 6.16
HAR's Operating margin (%) is ranked higher than
73% of the 2589 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.94 vs. HAR: 6.16 )
HAR' s 10-Year Operating margin (%) Range
Min: -17.65   Max: 12.23
Current: 6.16

-17.65
12.23
Net-margin (%) 4.39
HAR's Net-margin (%) is ranked higher than
70% of the 2589 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.95 vs. HAR: 4.39 )
HAR' s 10-Year Net-margin (%) Range
Min: -15.11   Max: 8.84
Current: 4.39

-15.11
8.84
ROE (%) 13.09
HAR's ROE (%) is ranked higher than
86% of the 2563 Companies
in the Global Consumer Electronics industry.

( Industry Median: 5.65 vs. HAR: 13.09 )
HAR' s 10-Year ROE (%) Range
Min: -42.84   Max: 21.95
Current: 13.09

-42.84
21.95
ROA (%) 5.69
HAR's ROA (%) is ranked higher than
79% of the 2594 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.84 vs. HAR: 5.69 )
HAR' s 10-Year ROA (%) Range
Min: -17.45   Max: 12.51
Current: 5.69

-17.45
12.51
ROC (Joel Greenblatt) (%) 35.04
HAR's ROC (Joel Greenblatt) (%) is ranked higher than
91% of the 2585 Companies
in the Global Consumer Electronics industry.

( Industry Median: 10.67 vs. HAR: 35.04 )
HAR' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -72.92   Max: 63.22
Current: 35.04

-72.92
63.22
Revenue Growth (%) 13.30
HAR's Revenue Growth (%) is ranked higher than
88% of the 1906 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.60 vs. HAR: 13.30 )
HAR' s 10-Year Revenue Growth (%) Range
Min: -7.3   Max: 16.9
Current: 13.3

-7.3
16.9
EBITDA Growth (%) 14.80
HAR's EBITDA Growth (%) is ranked higher than
82% of the 1552 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.40 vs. HAR: 14.80 )
HAR' s 10-Year EBITDA Growth (%) Range
Min: -26.8   Max: 35.5
Current: 14.8

-26.8
35.5
EPS Growth (%) 20.90
HAR's EPS Growth (%) is ranked higher than
82% of the 1376 Companies
in the Global Consumer Electronics industry.

( Industry Median: 2.30 vs. HAR: 20.90 )
HAR' s 10-Year EPS Growth (%) Range
Min: -52.7   Max: 74.5
Current: 20.9

-52.7
74.5
» HAR's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

HAR Guru Trades in Q3 2013

Jim Simons 187,600 sh (New)
Steven Cohen 17,374 sh (New)
George Soros 350,000 sh (New)
John Rogers 76,160 sh (+222.83%)
Third Avenue Management Sold Out
NWQ Managers 998,849 sh (-7.54%)
Mario Gabelli 180,500 sh (-8.98%)
Robert Olstein 129,000 sh (-33.85%)
Chuck Royce 630,300 sh (-37.26%)
Paul Tudor Jones 5,800 sh (-40.82%)
» More
Q4 2013

HAR Guru Trades in Q4 2013

Ken Heebner 90,000 sh (New)
John Rogers 235,724 sh (+209.51%)
Paul Tudor Jones 9,714 sh (+67.48%)
Steven Cohen 20,485 sh (+17.91%)
Jim Simons 208,400 sh (+11.09%)
Robert Olstein 129,000 sh (unchged)
Mario Gabelli 178,900 sh (-0.89%)
Chuck Royce 570,230 sh (-9.53%)
NWQ Managers 571,353 sh (-42.8%)
George Soros 175,000 sh (-50%)
» More
Q1 2014

HAR Guru Trades in Q1 2014

Joel Greenblatt 2,467 sh (New)
Pioneer Investments 5,713 sh (New)
Steven Cohen 418,213 sh (+1941.56%)
Ken Heebner 995,000 sh (+1005.56%)
Jim Simons 241,700 sh (+15.98%)
John Rogers 232,470 sh (-1.38%)
George Soros 150,000 sh (-14.29%)
Mario Gabelli 141,000 sh (-21.19%)
NWQ Managers 424,078 sh (-25.78%)
Robert Olstein 89,000 sh (-31.01%)
Chuck Royce 362,030 sh (-36.51%)
Paul Tudor Jones 2,200 sh (-77.35%)
» More
Q2 2014

HAR Guru Trades in Q2 2014

Joel Greenblatt 260,339 sh (+10452.9%)
Pioneer Investments 11,779 sh (+106.18%)
Jim Simons 391,000 sh (+61.77%)
Paul Tudor Jones 3,308 sh (+50.36%)
John Rogers 345,686 sh (+48.7%)
Steven Cohen 250,000 sh (unchged)
Robert Olstein 89,000 sh (unchged)
NWQ Managers 389,497 sh (-8.15%)
George Soros 125,000 sh (-16.67%)
Mario Gabelli 111,000 sh (-21.28%)
Chuck Royce 283,500 sh (-21.69%)
Ken Heebner 630,000 sh (-36.68%)
» More
» Details

Insider Trades

Latest Guru Trades with HAR

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-06-30 Add 10452.9%0.35%$99.98 - $112.01 $ 108.292%260339
Mario Gabelli 2014-06-30 Reduce -21.28%0.02%$99.98 - $112.01 $ 108.292%111000
Mario Gabelli 2014-03-31 Reduce -21.19%0.02%$80.2 - $110.9 $ 108.299%141000
Joel Greenblatt 2014-03-31 New Buy$80.2 - $110.9 $ 108.299%2467
George Soros 2013-12-31 Reduce -50%0.13%$65.19 - $84.5 $ 108.2940%175000
George Soros 2013-09-30 New Buy0.25%$53.37 - $70.92 $ 108.2973%350000
Joel Greenblatt 2013-03-31 Sold Out 0.11%$41.95 - $50.25 $ 108.29137%0
Joel Greenblatt 2012-12-31 Add 79.38%0.05%$37.35 - $46.32 $ 108.29159%43756
Joel Greenblatt 2012-09-30 New Buy0.08%$36.99 - $49.39 $ 108.29152%24393
Joel Greenblatt 2011-12-31 Sold Out 0.15%$26.2 - $44.78 $ 108.29183%0
Joel Greenblatt 2011-09-30 New Buy0.15%$29.02 - $47.93 $ 108.29189%31799
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Harman International Industries Inc

Third Avenue Management Comments on Harman International - Oct 02, 2012

Harman International (HAR) is a leading provider of premium branded audio systems, consumer electronics and related technologies found in automobiles, homes and professional venues. Founded in the 1940s by Dr. Sydney Harman4, the company's rich history has produced not only a legacy of highly-regarded and familiar brands such as Becker, Harman/Kardon, JBL, Infinity, Lexicon and Mark Levinson, but also more than 4,000 patents. By 2007, those brands and an enviable growth record attracted the attention of private equity sponsors KKR and Goldman Sachs who proposed and subsequently walked away from a highly-levered transaction that valued the company at $8 billion. The company's growth driver within the auto segment had temporarily fizzled, challenged by cheaper alternatives. The onset of the financial crisis forced the company's newish CEO, Dinesh Paliwal, to cut costs and adopt a more competitive business model. We first looked at Harman Common in 2009 in the aftermath of the failed buyout and have tracked the company's development since. Today, Harman continues to benefit from management's restructuring efforts, including a revamped and somewhat revolutionary and controversial approach to R&D.5 If the company's recently awarded auto business, which today totals more than $16 billion, is any indication, it appears management has struck a pleasing chord with a customer base that is notoriously risk averse and difficult to please. The company's infotainment systems are not only found in the world's most luxurious automobiles such as Ferrari, BMW and Mercedes, but also in those of developing OEMs such as Geely of China and Tata of India. Harman's automobile infotainment systems appear to sit in the sweet spot of increasing demand for both connectivity and safety. We expect that, along with a growing top line, the company's current order book will generate improving margins at the same time that management aggressively manages its cost structure. Based on the Fund's cost basis, which equates to roughly six times 2012 EBITDA, we believe we have identified a "growth" stock trading at a significant discount to intrinsic value.

From Third Avenue's third-quarter letter, by Curtis R. Jensen, chief investment officer and portfolio manager of Third Avenue Small-Cap Value Fund.
Check out Third Avenue Management latest stock trades

Ratios

vs
industry
vs
history
P/E(ttm) 32.20
HAR's P/E(ttm) is ranked lower than
52% of the 1878 Companies
in the Global Consumer Electronics industry.

( Industry Median: 19.10 vs. HAR: 32.20 )
HAR' s 10-Year P/E(ttm) Range
Min: 7.65   Max: 52.97
Current: 32.2

7.65
52.97
P/B 4.11
HAR's P/B is ranked lower than
65% of the 2456 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.53 vs. HAR: 4.11 )
HAR' s 10-Year P/B Range
Min: 0.55   Max: 9.31
Current: 4.11

0.55
9.31
P/S 1.42
HAR's P/S is ranked higher than
52% of the 2549 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.93 vs. HAR: 1.42 )
HAR' s 10-Year P/S Range
Min: 0.17   Max: 3.25
Current: 1.42

0.17
3.25
PFCF 17.38
HAR's PFCF is ranked higher than
64% of the 1374 Companies
in the Global Consumer Electronics industry.

( Industry Median: 17.22 vs. HAR: 17.38 )
HAR' s 10-Year PFCF Range
Min: 2.39   Max: 7385
Current: 17.38

2.39
7385
EV-to-EBIT 21.49
HAR's EV-to-EBIT is ranked higher than
53% of the 1894 Companies
in the Global Consumer Electronics industry.

( Industry Median: 14.40 vs. HAR: 21.49 )
HAR' s 10-Year EV-to-EBIT Range
Min: 7.2   Max: 32.4
Current: 21.49

7.2
32.4
PEG 1.80
HAR's PEG is ranked higher than
89% of the 2696 Companies
in the Global Consumer Electronics industry.

( Industry Median: 9999.00 vs. HAR: 1.80 )
HAR' s 10-Year PEG Range
Min: 0.6   Max: 8.71
Current: 1.8

0.6
8.71
Shiller P/E 99.37
HAR's Shiller P/E is ranked lower than
57% of the 994 Companies
in the Global Consumer Electronics industry.

( Industry Median: 24.83 vs. HAR: 99.37 )
HAR' s 10-Year Shiller P/E Range
Min: 3.7   Max: 119.08
Current: 99.37

3.7
119.08
Current Ratio 1.66
HAR's Current Ratio is ranked lower than
98% of the 2131 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.93 vs. HAR: 1.66 )
HAR' s 10-Year Current Ratio Range
Min: 1.43   Max: 2.7
Current: 1.66

1.43
2.7
Quick Ratio 1.21
HAR's Quick Ratio is ranked lower than
98% of the 2131 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.43 vs. HAR: 1.21 )
HAR' s 10-Year Quick Ratio Range
Min: 0.96   Max: 1.61
Current: 1.21

0.96
1.61

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.10
HAR's Dividend Yield is ranked lower than
65% of the 1706 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.66 vs. HAR: 1.10 )
HAR' s 10-Year Dividend Yield Range
Min: 0.04   Max: 1.27
Current: 1.1

0.04
1.27
Dividend Payout 0.36
HAR's Dividend Payout is ranked higher than
51% of the 1312 Companies
in the Global Consumer Electronics industry.

( Industry Median: 0.31 vs. HAR: 0.36 )
HAR' s 10-Year Dividend Payout Range
Min: 0.01   Max: 0.36
Current: 0.36

0.01
0.36
Dividend growth (3y) 188.40
HAR's Dividend growth (3y) is ranked higher than
100% of the 855 Companies
in the Global Consumer Electronics industry.

( Industry Median: -0.10 vs. HAR: 188.40 )
HAR' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 188.4
Current: 188.4

0
188.4
Yield on cost (5-Year) 1.10
HAR's Yield on cost (5-Year) is ranked lower than
69% of the 1761 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.85 vs. HAR: 1.10 )
HAR' s 10-Year Yield on cost (5-Year) Range
Min: 0.04   Max: 1.27
Current: 1.1

0.04
1.27
Share Buyback Rate 0.80
HAR's Share Buyback Rate is ranked higher than
86% of the 1362 Companies
in the Global Consumer Electronics industry.

( Industry Median: -0.80 vs. HAR: 0.80 )
HAR' s 10-Year Share Buyback Rate Range
Min: 4.8   Max: -7.4
Current: 0.8

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 6.89
HAR's Price/Tangible Book is ranked lower than
70% of the 2330 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.69 vs. HAR: 6.89 )
HAR' s 10-Year Price/Tangible Book Range
Min: 1.35   Max: 9.64
Current: 6.89

1.35
9.64
Price/DCF (Projected) 2.39
HAR's Price/DCF (Projected) is ranked higher than
53% of the 1179 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.23 vs. HAR: 2.39 )
HAR' s 10-Year Price/DCF (Projected) Range
Min: 0.42   Max: 17.46
Current: 2.39

0.42
17.46
Price/Median PS Value 1.38
HAR's Price/Median PS Value is ranked lower than
53% of the 2475 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.14 vs. HAR: 1.38 )
HAR' s 10-Year Price/Median PS Value Range
Min: 0.38   Max: 2.26
Current: 1.38

0.38
2.26
Price/Graham Number 3.10
HAR's Price/Graham Number is ranked lower than
64% of the 1720 Companies
in the Global Consumer Electronics industry.

( Industry Median: 1.21 vs. HAR: 3.10 )
HAR' s 10-Year Price/Graham Number Range
Min: 0.84   Max: 4.04
Current: 3.1

0.84
4.04
Earnings Yield (Greenblatt) 4.70
HAR's Earnings Yield (Greenblatt) is ranked higher than
56% of the 2266 Companies
in the Global Consumer Electronics industry.

( Industry Median: 6.50 vs. HAR: 4.70 )
HAR' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.1   Max: 13.9
Current: 4.7

3.1
13.9
Forward Rate of Return (Yacktman) 1.25
HAR's Forward Rate of Return (Yacktman) is ranked higher than
65% of the 1652 Companies
in the Global Consumer Electronics industry.

( Industry Median: 3.02 vs. HAR: 1.25 )
HAR' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.2   Max: 39.3
Current: 1.25

1.2
39.3

Business Description

Industry: Computer Hardware » Consumer Electronics
Compare:TOSYY, PHG, LPL, SNE, WHR » details
Traded in other countries:HII.Germany
Harman International Industries, Inc. was incorporated in the state of Delaware in 1980. The Company is engaged in the development, manufacture and marketing of high quality, audio products, lighting solutions and electronic systems, as well as digitally integrated audio and infotainment systems for the automotive industry. The Company has developed, both internally and through a series of strategic acquisitions, an array of products offerings sold under renowned brand names in its principal markets. The Company's AKG, Crown, JBL, Infinity, Harman/Kardon, Lexicon, dbx, Digitech, BSS, Studer, Soundcraft, Mark Levinson, Becker, Revel, Logic 7, and Selenium brand names are well known worldwide for premium quality and performance. The Company's reportable segments are Infotainment, Lifestyle, Professional and Other. The Infotainment segment includes its infotainment business, which was previously reported in the Company's Automotive segment, and, Aha, a business it acquired in September 2010, which was previously reported in the Company's Other segment. The Company's Lifestyle segment includes its automotive audio business, which was previously reported in the Company's Automotive segment, its Consumer segment, which was previously reported as a standalone segment, and its luxury home audio business, which was previously reported in the Company's Professional segment. The Company's Professional segment designs, manufactures and markets an extensive range of loudspeakers, power amplifiers, digital signal processors, microphones, headphones and mixing consoles used by audio professionals in concert halls, stadiums, airports, houses of worship and other public spaces. The Company also provides high-quality products to the sound reinforcement, music instrument support and broadcast and recording segments of the professional audio market. The Company offers complete systems solutions for professional installations and users around the world. The Company's Professional products are marketed globally under brand names including JBL Professional, AKG, Crown, Soundcraft, Lexicon, DigiTech, dbx, BSS, Selenium and Studer. The Company's Other segment includes compensation, benefits and occupancy costs for corporate employees, net of reporting segment allocations, expenses associated with new technology innovation and its corporate brand identity campaign. The Company primarily sells its Infotainment systems directly to automobile manufacturers in the U.S., Europe, India, Japan, China and South Korea. The audio industry is fragmented and competitive and includes numerous manufacturers offering audio products that vary widely in price, quality and distribution methods. The Company is subject to various Federal, state, local and international environmental laws and regulations, including those governing the use, discharge and disposal of hazardous materials and, increasingly, the recycling of its products and of their packaging.
» More Articles for HAR

Headlines

Articles On GuruFocus.com
The Olstein All Cap Value Fund’s 2014 Second Quarter Letter to Shareholders Sep 10 2014 
Adding Harman May Provide an Advancement to Investors’ Portfolio Mar 23 2014 
HAR, AMAT, KEY, FCE.A - Third Avenue Management Sells in Review Nov 24 2013 
Robert Olstein Decreases 37 Companies - MSFT, CSCO, HAR, THO Nov 13 2013 
Weekly CFO Sells Highlight: FB, HAR, SAAS, DSW, LYV Sep 01 2013 
5 Stocks Raising the Dividend Growth Bar Jul 01 2013 
Third Avenue Management Comments on Harman International Oct 02 2012 
i don't think i will Oct 22 2011 
Weekly Guru Bargains Highlights: Harman International Industries Inc, Lowes Cos, Delta Air Lines, Ap Aug 07 2011 
Dividend Roundup: DRI, HAR, ETE, MFA, WOR Jul 01 2011 

More From Other Websites
HARMAN and NBA Announce Groundbreaking Marketing and Merchandising Partnership Sep 17 2014
Harman Presses Move Into Wearables, Announces NBA Partnership Sep 17 2014
NBA Adds Harman’s JBL Headphones as Partner Over LeBron’s Beats Sep 17 2014
Why Private Equity Giant KKR Is Entering The DJ Booth Sep 16 2014
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HARMAN INTERNATIONAL INDUSTRIES INC /DE/ Files SEC form 8-K, Entry into a Material Definitive... Sep 11 2014
[video] Harman in 'pretty good sweet spot': CEO Sep 05 2014
New Harman Kardon Omni Wireless HD Audio System Delivers Whole Home Sound with Ease and Elegance Sep 04 2014
Elegant and Portable: Introducing the Harman Kardon Esquire Mini Wireless Speaker and Conferencing... Sep 04 2014
HARMAN Introduces Harman Kardon Soho Wireless Headphones Sep 04 2014
JBL® Unveils JBL Cinema Base: Home Theater Sound That Fits Under Your TV Sep 04 2014
HARMAN Infinity One Portable Wireless Bluetooth Speaker System Sep 04 2014
JBL® Charge 2 Portable Wireless Bluetooth Speaker and Charging System Sep 04 2014
JBL® Cinema™ SB350 Soundbar and Wireless Subwoofer Sep 04 2014
Harman and Spotify® Team Up to Simplify Streaming Audio for Global Listeners Sep 04 2014
Harman Announces Global Developer Community Sep 04 2014
Audio Runs Hot In Cars And Phones With Harman, Apple Aug 29 2014
[video] Pro loves auto suppliers Aug 18 2014
HARMAN INTERNATIONAL INDUSTRIES INC /DE/ Financials Aug 15 2014

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