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HLITHarmonic Inc.
$13.43$1.5B
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  4. Financial Ratios

Harmonic Inc. (HLIT) Financial Ratios

Latest Ratios: P/E Ratio -35.3x · EV/EBITDA 52.7x · ROE -10.2%. (1996–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

HLIT Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.5B$1.1B$1.6B$1.5B$1.5B$1.2B$717M$699M$404M$340M$389M
Enterprise Value$1.5B$1.2B$1.6B$1.6B$1.5B$1.3B$803M$792M$473M$415M$457M
P/E Ratio →-35.34—40.0918.1152.4098.00—————
P/S Ratio4.043.132.292.522.362.461.891.731.000.950.96
P/B Ratio4.002.953.343.504.544.212.772.771.771.561.44
P/FCF15.0411.6629.48——44.53102.9933.3277.12——
P/OCF13.5010.4625.10216.80268.8430.4418.3022.3332.90111.00887.04

P/E links to full P/E history page with 30-year chart

HLIT EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—3.202.362.642.472.572.121.971.171.161.13
EV / EBITDA52.6741.0121.2746.5426.7140.97246.4024.2328.96——
EV / EBIT86.9467.7024.5473.3731.2566.95—156.66———
EV / FCF—11.9030.36——46.55115.3737.7790.23——

HLIT Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin45.4%45.4%53.9%51.4%50.5%51.2%51.5%55.4%51.8%47.4%49.5%
Operating Margin4.7%4.7%9.3%3.6%7.3%3.7%-3.3%3.2%-1.2%-19.8%-16.5%
Net Profit Margin-12.0%-12.0%5.8%13.8%4.5%2.6%-7.7%-1.5%-5.2%-23.2%-17.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-10.2%-10.2%8.7%22.1%9.1%4.8%-11.5%-2.5%-9.4%-33.9%-24.2%
ROA-5.7%-5.7%5.0%11.4%4.0%2.1%-5.0%-1.1%-4.1%-15.6%-13.4%
ROIC2.8%2.8%9.3%3.7%9.1%4.0%-2.7%3.1%-1.3%-16.8%-15.7%
ROCE3.0%3.0%11.2%5.0%10.6%4.1%-3.0%3.4%-1.4%-18.3%-15.8%

HLIT Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.390.390.320.360.500.640.720.740.590.600.46
Debt / EBITDA5.265.261.974.532.785.9756.725.708.25——
Net Debt / Equity—0.060.100.160.220.190.330.370.300.340.25
Net Debt / EBITDA0.840.840.622.091.231.7826.442.854.21——
Debt / FCF—0.250.89——2.0212.384.4513.11——
Interest Coverage4.484.488.918.109.801.83-1.280.43-0.49-6.65-6.57

HLIT Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.502.502.181.211.071.441.621.311.441.211.50
Quick Ratio2.262.261.800.910.701.121.381.161.251.031.21
Cash Ratio0.630.630.610.310.280.590.670.480.480.400.43
Asset Turnover—0.500.850.790.880.730.640.690.790.710.73
Inventory Turnover4.114.114.893.522.563.485.256.197.587.254.98
Days Sales Outstanding—87.0098.0487.8466.5969.5573.2592.8484.0571.1678.02

HLIT Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield——2.5%5.5%1.9%1.0%—————
FCF Yield6.6%8.6%3.4%——2.2%1.0%3.0%1.3%——
Buyback Yield5.4%7.0%1.9%0.0%0.3%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield5.4%7.0%1.9%0.0%0.3%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$114M$117M$117M$112M$106M$97M$90M$86M$81M$78M

Key Metrics

Growth RegimeContracting
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Cyclical MSO CapEx dependency

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Valuation Premium Reflects Software Pivot

Based on current market data, Harmonic trades at a forward P/E of 23.22, suggesting that investors are pricing in a recovery in software-led growth despite the recent 46.88% year-over-year revenue contraction that has left the trailing P/E at a negative -39.21, reflecting significant near-term earnings uncertainty.

The elevated EV/EBITDA multiple of 58.35 relative to peers suggests the market is assigning a premium to the CableOS platform's potential for recurring revenue. However, this valuation appears aggressive given the current lack of GAAP profitability and the lumpy nature of infrastructure deployments, which may lead to volatility if future project milestones are delayed.

Capital Efficiency Hindered by Transition

As reported in recent financial statements, Harmonic's ROIC has struggled to maintain momentum, fluctuating between -2.4% and 7.7% over the last ten quarters, which indicates that the company is currently failing to consistently generate returns above its cost of capital during this structural business model pivot.

The inconsistency in ROIC is largely driven by the high R&D intensity required to maintain the CableOS competitive edge while simultaneously managing a declining legacy video segment. Investors should monitor whether the company can achieve sustained double-digit returns once the transition to a software-centric revenue model is fully realized.

Working Capital Volatility Impacts Liquidity

According to quarterly filings, Harmonic's cash conversion cycle has remained highly erratic, peaking at 160 days in 2024Q1 and currently sitting at 98 days, which highlights the company's vulnerability to the payment terms and inventory management requirements of its primary Tier-1 cable operator customers.

The significant swings in DSO and DIO suggest that the company lacks strong leverage over its customer base, often forcing it to carry higher inventory levels to meet project-specific delivery timelines. This inefficiency in working capital management directly contributes to the lumpy free cash flow profile observed in recent periods.

Misapplication of Traditional P/E Multiples

The trailing P/E ratio is a fundamentally flawed metric for Harmonic, as it obscures the company's transition from hardware-heavy project revenue to a software-defined model, failing to account for the significant non-recurring costs and revenue recognition timing issues inherent in large-scale cable infrastructure deployments.

Analysts should instead focus on EV/Sales or adjusted EBITDA multiples to better capture the underlying commercial momentum of the CableOS platform. Relying on P/E during this transition period risks misinterpreting temporary accounting losses as a permanent impairment of the company's competitive positioning in the vCMTS market.

Download Financial Ratios Data

Includes 30+ ratios · 30 years · Updated daily

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HLIT — Frequently Asked Questions

Quick answers to the most common questions about buying HLIT stock.

What is Harmonic Inc.'s P/E ratio?

Harmonic Inc.'s current P/E ratio is -35.3x. The historical average is 49.4x.

What is Harmonic Inc.'s EV/EBITDA?

Harmonic Inc.'s current EV/EBITDA is 52.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 35.6x.

What is Harmonic Inc.'s ROE?

Harmonic Inc.'s return on equity (ROE) is -10.2%. The historical average is -7.7%.

Is HLIT stock overvalued?

Based on historical data, Harmonic Inc. is trading at a P/E of -35.3x. Compare with industry peers and growth rates for a complete picture.

What are Harmonic Inc.'s profit margins?

Harmonic Inc. has 45.4% gross margin and 4.7% operating margin.

How much debt does Harmonic Inc. have?

Harmonic Inc.'s Debt/EBITDA ratio is 5.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.