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APPLIED OPTOELECTRONICS INC (AAOI) Stock Fundamental Analysis

NASDAQ:AAOI - Nasdaq - US03823U1025 - Common Stock - Currency: USD

15.47  -1.45 (-8.57%)

After market: 15.52 +0.05 (+0.32%)

Fundamental Rating

2

Taking everything into account, AAOI scores 2 out of 10 in our fundamental rating. AAOI was compared to 49 industry peers in the Communications Equipment industry. AAOI may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, AAOI is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year AAOI has reported negative net income.
In the past year AAOI has reported a negative cash flow from operations.
AAOI had negative earnings in each of the past 5 years.
AAOI had a negative operating cash flow in each of the past 5 years.
AAOI Yearly Net Income VS EBIT VS OCF VS FCFAAOI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M -100M -150M

1.2 Ratios

AAOI's Return On Assets of -26.79% is on the low side compared to the rest of the industry. AAOI is outperformed by 75.51% of its industry peers.
AAOI has a worse Return On Equity (-55.90%) than 71.43% of its industry peers.
Industry RankSector Rank
ROA -26.79%
ROE -55.9%
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
AAOI Yearly ROA, ROE, ROICAAOI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80

1.3 Margins

Looking at the Gross Margin, with a value of 27.47%, AAOI is doing worse than 77.55% of the companies in the same industry.
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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 27.47%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y11.63%
GM growth 5Y0.48%
AAOI Yearly Profit, Operating, Gross MarginsAAOI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

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2

2. Health

2.1 Basic Checks

AAOI does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, AAOI has more shares outstanding
Compared to 5 years ago, AAOI has more shares outstanding
The debt/assets ratio for AAOI is higher compared to a year ago.
AAOI Yearly Shares OutstandingAAOI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
AAOI Yearly Total Debt VS Total AssetsAAOI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

AAOI has an Altman-Z score of 1.03. This is a bad value and indicates that AAOI is not financially healthy and even has some risk of bankruptcy.
AAOI has a Altman-Z score of 1.03. This is comparable to the rest of the industry: AAOI outperforms 51.02% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that AAOI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, AAOI is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Altman-Z 1.03
ROIC/WACCN/A
WACC9.43%
AAOI Yearly LT Debt VS Equity VS FCFAAOI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

2.3 Liquidity

AAOI has a Current Ratio of 1.88. 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 Current ratio of 1.88. This is comparable to the rest of the industry: AAOI outperforms 53.06% of its industry peers.
A Quick Ratio of 1.34 indicates that AAOI should not have too much problems paying its short term obligations.
AAOI has a Quick ratio (1.34) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.34
AAOI Yearly Current Assets VS Current LiabilitesAAOI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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6

3. Growth

3.1 Past

AAOI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
AAOI shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.35%.
The Revenue has been growing slightly by 5.49% on average over the past years.
EPS 1Y (TTM)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%93.55%
Revenue 1Y (TTM)50.35%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%145.52%

3.2 Future

Based on estimates for the next years, AAOI will show a very strong growth in Earnings Per Share. The EPS will grow by 81.79% on average per year.
AAOI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 72.18% yearly.
EPS Next Y104.98%
EPS Next 2Y81.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year92.75%
Revenue Next 2Y72.18%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
AAOI Yearly Revenue VS EstimatesAAOI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
AAOI Yearly EPS VS EstimatesAAOI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 -1 2 3 4

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3

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 correctly with a Price/Forward Earnings ratio of 14.46.
67.35% of the companies in the same industry are more expensive than AAOI, based on the Price/Forward Earnings ratio.
AAOI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 14.46
AAOI Price Earnings VS Forward Price EarningsAAOI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 -20

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
AAOI Per share dataAAOI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

AAOI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AAOI's earnings are expected to grow with 81.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y81.79%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for AAOI!.
Industry RankSector Rank
Dividend Yield N/A

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APPLIED OPTOELECTRONICS INC

NASDAQ:AAOI (6/13/2025, 8:00:00 PM)

After market: 15.52 +0.05 (+0.32%)

15.47

-1.45 (-8.57%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)08-04 2025-08-04/amc
Inst Owners57.57%
Inst Owner Change-0.64%
Ins Owners5.07%
Ins Owner Change16.52%
Market Cap859.20M
Analysts80
Price Target31.01 (100.45%)
Short Float %20.12%
Short Ratio2.86
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)18.49%
Min EPS beat(2)-8.93%
Max EPS beat(2)45.91%
EPS beat(4)2
Avg EPS beat(4)5.1%
Min EPS beat(4)-22.73%
Max EPS beat(4)45.91%
EPS beat(8)5
Avg EPS beat(8)973.25%
EPS beat(12)8
Avg EPS beat(12)650.9%
EPS beat(16)12
Avg EPS beat(16)492.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.48%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)2.04%
Revenue beat(8)1
Avg Revenue beat(8)-4.36%
Revenue beat(12)1
Avg Revenue beat(12)-4.62%
Revenue beat(16)2
Avg Revenue beat(16)-3.85%
PT rev (1m)-15.56%
PT rev (3m)-10.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-158.79%
EPS NY rev (1m)0%
EPS NY rev (3m)-95.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.21%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 14.46
P/S 2.78
P/FCF N/A
P/OCF N/A
P/B 2.78
P/tB 2.81
EV/EBITDA N/A
EPS(TTM)-0.53
EYN/A
EPS(NY)1.07
Fwd EY6.92%
FCF(TTM)-2.85
FCFYN/A
OCF(TTM)-1.66
OCFYN/A
SpS5.56
BVpS5.56
TBVpS5.5
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -26.79%
ROE -55.9%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 27.47%
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
ROICexcg growth 3YN/A
ROICexcg 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-Score3
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 310.98%
Cap/Sales 21.55%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.88
Quick Ratio 1.34
Altman-Z 1.03
F-Score3
WACC9.43%
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)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%93.55%
EPS Next Y104.98%
EPS Next 2Y81.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)50.35%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%145.52%
Revenue Next Year92.75%
Revenue Next 2Y72.18%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year195.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-586.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-364.21%
OCF growth 3YN/A
OCF growth 5YN/A