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APPLIED OPTOELECTRONICS INC (AAOI) Stock Fundamental Analysis

NASDAQ:AAOI - US03823U1025 - Common Stock

24.2 USD
-1.29 (-5.06%)
Last: 8/29/2025, 8:05:00 PM
24.21 USD
+0.01 (+0.04%)
After Hours: 8/29/2025, 8:05:00 PM
Fundamental Rating

2

Overall AAOI gets a fundamental rating of 2 out of 10. We evaluated AAOI against 48 industry peers in the Communications Equipment industry. AAOI has a bad profitability rating. Also its financial health evaluation is rather negative. AAOI is quite expensive at the moment. It does show a decent growth rate.


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.
AAOI had a negative operating cash flow in the past year.
AAOI had negative earnings in each of the past 5 years.
In the past 5 years AAOI always reported negative operating cash flow.
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 -19.54% is on the low side compared to the rest of the industry. AAOI is outperformed by 77.08% of its industry peers.
AAOI has a Return On Equity of -36.64%. This is in the lower half of the industry: AAOI underperforms 70.83% of its industry peers.
Industry RankSector Rank
ROA -19.54%
ROE -36.64%
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

AAOI has a Gross Margin of 28.88%. This is in the lower half of the industry: AAOI underperforms 77.08% of its industry peers.
AAOI's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for AAOI so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 28.88%
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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3

2. Health

2.1 Basic Checks

AAOI does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AAOI has been increased compared to 1 year ago.
The number of shares outstanding for AAOI has been increased compared to 5 years ago.
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 2.24. This is not the best score and indicates that AAOI is in the grey zone with still only limited risk for bankruptcy at the moment.
AAOI's Altman-Z score of 2.24 is fine compared to the rest of the industry. AAOI outperforms 64.58% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that AAOI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.39, AAOI is doing worse than 62.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 2.24
ROIC/WACCN/A
WACC9.9%
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

A Current Ratio of 2.11 indicates that AAOI has no problem at all paying its short term obligations.
AAOI has a Current ratio (2.11) which is in line with its industry peers.
A Quick Ratio of 1.47 indicates that AAOI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.47, AAOI perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 1.47
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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.67%, which is quite impressive.
AAOI shows a strong growth in Revenue. In the last year, the Revenue has grown by 77.98%.
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)31.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)77.98%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%137.93%

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 75.38% on average per year.
Based on estimates for the next years, AAOI will show a very strong growth in Revenue. The Revenue will grow by 71.00% on average per year.
EPS Next Y71.49%
EPS Next 2Y75.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year87.58%
Revenue Next 2Y71%
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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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AAOI. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 27.43 indicates a quite expensive valuation of AAOI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAOI is on the same level as its industry peers.
AAOI's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.72.
Industry RankSector Rank
PE N/A
Fwd PE 27.43
AAOI Price Earnings VS Forward Price EarningsAAOI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 100 150

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 6

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 75.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y75.38%
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 (8/29/2025, 8:05:00 PM)

After market: 24.21 +0.01 (+0.04%)

24.2

-1.29 (-5.06%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)11-05 2025-11-05/amc
Inst Owners58.88%
Inst Owner Change8.1%
Ins Owners5.09%
Ins Owner Change18.67%
Market Cap1.51B
Analysts78.46
Price Target30.09 (24.34%)
Short Float %22.28%
Short Ratio2.14
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)-32.75%
Min EPS beat(2)-111.4%
Max EPS beat(2)45.91%
EPS beat(4)1
Avg EPS beat(4)-24.29%
Min EPS beat(4)-111.4%
Max EPS beat(4)45.91%
EPS beat(8)4
Avg EPS beat(8)956.11%
EPS beat(12)7
Avg EPS beat(12)640.96%
EPS beat(16)11
Avg EPS beat(16)484.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.04%
Min Revenue beat(2)-4.6%
Max Revenue beat(2)-1.48%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)2.04%
Revenue beat(8)1
Avg Revenue beat(8)-3.66%
Revenue beat(12)1
Avg Revenue beat(12)-4.15%
Revenue beat(16)2
Avg Revenue beat(16)-4.03%
PT rev (1m)-2.96%
PT rev (3m)-18.06%
EPS NQ rev (1m)-1373.33%
EPS NQ rev (3m)-128.75%
EPS NY rev (1m)-673%
EPS NY rev (3m)-673%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)-19.56%
Revenue NY rev (1m)-3.9%
Revenue NY rev (3m)-2.68%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 27.43
P/S 4.1
P/FCF N/A
P/OCF N/A
P/B 3.55
P/tB 3.58
EV/EBITDA N/A
EPS(TTM)-0.41
EYN/A
EPS(NY)0.88
Fwd EY3.65%
FCF(TTM)-3.92
FCFYN/A
OCF(TTM)-2.49
OCFYN/A
SpS5.91
BVpS6.82
TBVpS6.76
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -19.54%
ROE -36.64%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 28.88%
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-Score5
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 391.67%
Cap/Sales 24.16%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.11
Quick Ratio 1.47
Altman-Z 2.24
F-Score5
WACC9.9%
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)31.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y71.49%
EPS Next 2Y75.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)77.98%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%137.93%
Revenue Next Year87.58%
Revenue Next 2Y71%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year187.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2270.52%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-2185.96%
OCF growth 3YN/A
OCF growth 5YN/A