Harmonic: Overvalued And Decent Growth Story

Nov. 20, 2022 4:09 AM ETHarmonic Inc. (HLIT)6 Comments
Evin Rohrbaugh profile picture
Evin Rohrbaugh
784 Followers

Summary

  • Harmonic Inc. is a broadband and video software business that was been an underperformer so far.
  • Operating, FCF, and net margins have been inconsistent over the long term.
  • The valuation is too high on multiples and intrinsic basis, though the company is worth watching.

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Harmonic Inc. (NASDAQ:HLIT) is a broadband and video software business. The two business segments are known as appliance and integration(broadband) first, and the second being SAAS and service(video). The first segment is around 73% of revenue with the rest going to video.

share price cagr of HLIT

dividend channel

dcf model for HLIT

money chimp

This article was written by

Evin Rohrbaugh profile picture
784 Followers
I am an independent analyst and investor interested in investing at the intersection of value and growth. My method is a highly qualitative focus on mostly small caps, looking for both long term compounders as well as some special situations. On Twitter @GrowthyValue

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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