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HLIT

BEARISH
$9.75 Live
Harmonic Inc. · NASDAQ
Target $12.71 (+30.4%)
$7.8 52W Range $12.18

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AI Analysis

AI-powered fundamental assessment

Confidence
85%
HLIT exhibits a stable but mediocre Piotroski F-Score of 4/9, while deterministic value metrics (Graham Number $0.88, Intrinsic Value $0.07) suggest the stock is severely overvalued at its current price of $9.75. The company is facing a catastrophic collapse in growth, with YoY revenue down 55.8% and Q/Q revenue down 123.87%. While the balance sheet remains healthy with a low Debt/Equity ratio of 0.35 and a strong Current Ratio of 2.50, the fundamental disconnect between price and performance is extreme. The market appears to be pricing in a recovery based on a Forward P/E of 13.43, but current data shows a trailing P/E of 975 and negative profit margins.

Key Strengths

Strong short-term liquidity with a Current Ratio of 2.50
Low leverage with a Debt/Equity ratio of 0.35
Healthy Gross Margin of 48.47%
Positive analyst sentiment with a target price of $12.71
Stable Piotroski F-Score (4/9) indicating no immediate financial collapse

Key Risks

Severe revenue contraction (-55.8% YoY, -123.87% Q/Q)
Extreme valuation gap compared to Graham Number ($0.88) and Intrinsic Value ($0.07)
Negative profit margins (-12.01%) and minimal ROE (0.29%)
Bearish insider sentiment with recent selling activity
Extreme earnings volatility, including a recent -1080% EPS surprise
AI Fair Value Estimate
Based on comprehensive analysis
$1.15
-88.2% below current price

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Sector Comparison & Peer Analysis

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