Harmonic Inc Intrinsic Value Calculation – Activist Investor Pressures Harmonic to Sell Video Business: Report
December 30, 2023
☀️Trending News
Harmonic Inc ($NASDAQ:HLIT)., a publicly traded company providing video infrastructure and service solutions, has reportedly been facing pressure from an activist investor to sell its video assets. According to a recent report, the investor has held a sizable stake in the company for some time and is now looking to unlock further value from the assets. This move is seen as an attempt to maximize returns for shareholders. Harmonic Inc. is a leading provider of video delivery infrastructure, broadcast and media solutions, and software-based services.
The company’s products and services are used by video service providers to deliver content to TV, PC, and mobile devices. Its solutions are designed to enable customers to minimize their capital and operational costs while delivering superior video quality. The company’s customers include some of the world’s largest telecoms, cable operators, broadcasters, and content owners.
Share Price
Activist investor group Elliott Management Corporation is pressuring HARMONIC INC, a digital media technology company, to pursue a sale of its video business. According to a report from Bloomberg, the investor has argued that the sale of this business unit would represent a tangible and immediate increase in shareholder value. This news had a positive impact on HARMONIC INC’s stock price, as on Thursday it opened at $12.6 and closed at $12.9, up by 3.0% from its prior closing price of $12.6. It is unclear at this stage what the outcome of this activist investor pressure will be for the company, however shareholders are watching with anticipation. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Harmonic Inc. More…
| Total Revenues | Net Income | Net Margin |
| 605.15 | 6.28 | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Harmonic Inc. More…
| Operations | Investing | Financing |
| 20.14 | -13.91 | -41.12 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Harmonic Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 673.81 | 333.01 | 3.04 |
Key Ratios Snapshot
Some of the financial key ratios for Harmonic Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.9% | 44.4% | 4.7% |
| FCF Margin | ROE | ROA |
| 2.1% | 5.3% | 2.7% |
Analysis – Harmonic Inc Intrinsic Value Calculation
At GoodWhale, we believe in the power of data to inform our analysis. We recently conducted an analysis on HARMONIC INC‘s wellbeing, using our proprietary Valuation Line. According to our analysis, the intrinsic value of HARMONIC INC’s share is around $11.1. This means that at present, HARMONIC INC’s stock is priced at $12.9, a fair price that is overvalued by 16.5%. Our analysis is based on a number of factors which include the company’s cash flows, market trends and risk factors. We believe that this is a good indication of the company’s financial health and wellbeing. More…
Peers
The company has been competing against its competitors, Radiation Technology Inc, Teleste Oyj, and Eutelsat Communications, for the past several years. The competition between the companies has been fierce, with each company trying to outdo the other in terms of innovation and technology.
– Radiation Technology Inc ($TPEX:6514)
Radiation Technology Inc is a company that specializes in the production of radiation products and services. The company has a market capitalization of 1.45 billion as of 2022 and a return on equity of 13.65%. The company’s products and services are used in a variety of industries, including healthcare, government, and industrial. Radiation Technology Inc has a long history of providing quality products and services to its customers. The company is headquartered in the United States and has a global customer base.
– Teleste Oyj ($LTS:0K1Q)
Founded in 1984, Teleste is a Finnish company that provides broadband video and data communication systems and services. The company serves a variety of industries, including telecommunications, energy, healthcare, and transportation. Teleste has a market capitalization of 61.06 million euros as of 2022 and a return on equity of 3.58%. The company’s products and services include broadband video headend and edge solutions, data communication networks, and passenger information and entertainment systems.
– Eutelsat Communications ($LTS:0JNI)
Eutelsat Communications is a leading satellite operator, providing reliable and secure satellite-based connectivity solutions for broadcast, telecom, corporate and government customers worldwide.
Eutelsat Communications has a market capitalization of 2.16 billion as of 2022 and a return on equity of 9.77%. The company provides reliable and secure satellite-based connectivity solutions for broadcast, telecom, corporate and government customers worldwide. Eutelsat Communications is headquartered in Paris, France.
Summary
Harmonic Inc is a publicly traded company that has seen its stock price move up due to recent reports of activist investor pressure over its potential sale of a video streaming platform. Analysts have suggested that this pressure could prove beneficial for shareholders, as the possible sale could be beneficial for the company’s bottom line. Investors should keep an eye on Harmonic Inc as the situation develops and watch the stock price and any news sources for further updates on the potential sale.
