39.26 USD
+2.22 (+5.99%)
38.65 USD
-0.61 (-1.55%)
We assign a fundamental rating of 3 out of 10 to AAOI. AAOI was compared to 48 industry peers in the Communications Equipment industry. AAOI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, AAOI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- AAOI had negative earnings in the past year.
- In the past year AAOI has reported a negative cash flow from operations.
- AAOI had negative earnings in each of the past 5 years.
- In the past 5 years AAOI always reported negative operating cash flow.
1.2 Ratios
- With a Return On Assets value of -15.93%, AAOI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- The Return On Equity of AAOI (-27.88%) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.93% | ||
| ROE | -27.88% | ||
| ROIC | N/A |
ROA(3y)-21.6%
ROA(5y)-17.78%
ROE(3y)-47.85%
ROE(5y)-37.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- AAOI has a worse Gross Margin (29.33%) than 83.33% of its industry peers.
- AAOI's Gross Margin has been stable in the last couple of years.
- AAOI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.33% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.63%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
- AAOI does not have a ROIC to compare to the WACC, probably because it is not profitable.
- AAOI has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AAOI has more shares outstanding
- The debt/assets ratio for AAOI is higher compared to a year ago.
2.2 Solvency
- AAOI has an Altman-Z score of 3.80. This indicates that AAOI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of AAOI (3.80) is better than 68.75% of its industry peers.
- AAOI has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.29, AAOI is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.8 |
ROIC/WACCN/A
WACC9.42%
2.3 Liquidity
- AAOI has a Current Ratio of 2.31. This indicates that AAOI is financially healthy and has no problem in meeting its short term obligations.
- AAOI has a better Current ratio (2.31) than 68.75% of its industry peers.
- AAOI has a Quick Ratio of 1.63. This is a normal value and indicates that AAOI is financially healthy and should not expect problems in meeting its short term obligations.
- AAOI has a Quick ratio (1.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 61.84% over the past year.
- AAOI shows a strong growth in Revenue. In the last year, the Revenue has grown by 101.25%.
- Measured over the past years, AAOI shows a small growth in Revenue. The Revenue has been growing by 5.49% on average per year.
EPS 1Y (TTM)61.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%57.14%
Revenue 1Y (TTM)101.25%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%82.08%
3.2 Future
- AAOI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.97% yearly.
- AAOI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 86.98% yearly.
EPS Next Y53.57%
EPS Next 2Y63.99%
EPS Next 3Y48.97%
EPS Next 5YN/A
Revenue Next Year82.44%
Revenue Next 2Y79.73%
Revenue Next 3Y86.98%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for AAOI. In the last year negative earnings were reported.
- AAOI is valuated quite expensively with a Price/Forward Earnings ratio of 69.45.
- AAOI's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, AAOI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.45 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as AAOI's earnings are expected to grow with 48.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.99%
EPS Next 3Y48.97%
5. Dividend
5.1 Amount
- No dividends for AAOI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
39.26
+2.22 (+5.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-24 2026-02-24/amc
Inst Owners62.93%
Inst Owner Change0.05%
Ins Owners4.15%
Ins Owner Change-2.69%
Market Cap2.68B
Revenue(TTM)421.71M
Net Income(TTM)-155.90M
Analysts76.92
Price Target38.08 (-3.01%)
Short Float %18.74%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-55.61%
Min EPS beat(2)-111.4%
Max EPS beat(2)0.19%
EPS beat(4)2
Avg EPS beat(4)-18.56%
Min EPS beat(4)-111.4%
Max EPS beat(4)45.91%
EPS beat(8)4
Avg EPS beat(8)956.05%
EPS beat(12)7
Avg EPS beat(12)639.98%
EPS beat(16)11
Avg EPS beat(16)482.47%
Revenue beat(2)0
Avg Revenue beat(2)-3.75%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-2.9%
Revenue beat(4)0
Avg Revenue beat(4)-2.66%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-1.48%
Revenue beat(8)1
Avg Revenue beat(8)-3.77%
Revenue beat(12)1
Avg Revenue beat(12)-3.93%
Revenue beat(16)2
Avg Revenue beat(16)-4.04%
PT rev (1m)15.46%
PT rev (3m)26.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-452.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-62.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-5.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.45 | ||
| P/S | 6.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.79 | ||
| P/tB | 4.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.29
EYN/A
EPS(NY)0.57
Fwd EY1.44%
FCF(TTM)-4.43
FCFYN/A
OCF(TTM)-2.48
OCFYN/A
SpS6.18
BVpS8.19
TBVpS8.13
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -15.93% | ||
| ROE | -27.88% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.33% | ||
| FCFM | N/A |
ROA(3y)-21.6%
ROA(5y)-17.78%
ROE(3y)-47.85%
ROE(5y)-37.18%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.63%
GM growth 5Y0.48%
F-Score4
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 534.85% | ||
| Cap/Sales | 31.51% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 3.8 |
F-Score4
WACC9.42%
ROIC/WACCN/A
Cap/Depr(3y)91.99%
Cap/Depr(5y)75.01%
Cap/Sales(3y)7.91%
Cap/Sales(5y)6.93%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%57.14%
EPS Next Y53.57%
EPS Next 2Y63.99%
EPS Next 3Y48.97%
EPS Next 5YN/A
Revenue 1Y (TTM)101.25%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%82.08%
Revenue Next Year82.44%
Revenue Next 2Y79.73%
Revenue Next 3Y86.98%
Revenue Next 5YN/A
EBIT growth 1Y28.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year133.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1660.98%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1207.62%
OCF growth 3YN/A
OCF growth 5YN/A
APPLIED OPTOELECTRONICS INC / AAOI FAQ
Can you provide the ChartMill fundamental rating for APPLIED OPTOELECTRONICS INC?
ChartMill assigns a fundamental rating of 3 / 10 to AAOI.
What is the valuation status for AAOI stock?
ChartMill assigns a valuation rating of 2 / 10 to APPLIED OPTOELECTRONICS INC (AAOI). This can be considered as Overvalued.
Can you provide the profitability details for APPLIED OPTOELECTRONICS INC?
APPLIED OPTOELECTRONICS INC (AAOI) has a profitability rating of 0 / 10.
How financially healthy is APPLIED OPTOELECTRONICS INC?
The financial health rating of APPLIED OPTOELECTRONICS INC (AAOI) is 4 / 10.
What is the earnings growth outlook for APPLIED OPTOELECTRONICS INC?
The Earnings per Share (EPS) of APPLIED OPTOELECTRONICS INC (AAOI) is expected to grow by 53.57% in the next year.