APPLIED OPTOELECTRONICS INC (AAOI) Fundamental Analysis & Valuation

NASDAQ:AAOI • US03823U1025

Current stock price

146.72 USD
-6.47 (-4.22%)
Last:

This AAOI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. AAOI Profitability Analysis

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.
  • In the past 5 years AAOI always reported negative net income.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -100M -200M -300M

1.2 Ratios

  • The Return On Assets of AAOI (-3.27%) is worse than 65.96% of its industry peers.
  • The Return On Equity of AAOI (-5.21%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA -3.27%
ROE -5.21%
ROIC N/A
ROA(3y)-17.27%
ROA(5y)-16%
ROE(3y)-37.6%
ROE(5y)-34.01%
ROIC(3y)N/A
ROIC(5y)N/A
AAOI Yearly ROA, ROE, ROICAAOI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 -40 -60 -80

1.3 Margins

  • Looking at the Gross Margin, with a value of 30.04%, AAOI is doing worse than 82.98% of the companies in the same industry.
  • In the last couple of years the Gross Margin of AAOI has grown nicely.
  • 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 30.04%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y25.83%
GM growth 5Y6.9%
AAOI Yearly Profit, Operating, Gross MarginsAAOI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 -60

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5

2. AAOI Health Analysis

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 has been reduced compared to a year ago.
AAOI Yearly Shares OutstandingAAOI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
AAOI Yearly Total Debt VS Total AssetsAAOI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 15.99 indicates that AAOI is not in any danger for bankruptcy at the moment.
  • AAOI has a better Altman-Z score (15.99) than 91.49% of its industry peers.
  • A Debt/Equity ratio of 0.22 indicates that AAOI is not too dependend on debt financing.
  • The Debt to Equity ratio of AAOI (0.22) is worse than 63.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF N/A
Altman-Z 15.99
ROIC/WACCN/A
WACC9.6%
AAOI Yearly LT Debt VS Equity VS FCFAAOI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M 400M 600M

2.3 Liquidity

  • AAOI has a Current Ratio of 2.63. This indicates that AAOI is financially healthy and has no problem in meeting its short term obligations.
  • AAOI has a better Current ratio (2.63) than 63.83% of its industry peers.
  • AAOI has a Quick Ratio of 1.91. This is a normal value and indicates that AAOI is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of AAOI (1.91) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.63
Quick Ratio 1.91
AAOI Yearly Current Assets VS Current LiabilitesAAOI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. AAOI Growth Analysis

3.1 Past

  • AAOI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.85%, which is quite impressive.
  • The Revenue has grown by 82.75% in the past year. This is a very strong growth!
  • The Revenue has been growing by 14.20% on average over the past years. This is quite good.
EPS 1Y (TTM)65.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)82.75%
Revenue growth 3Y26.94%
Revenue growth 5Y14.2%
Sales Q2Q%33.91%

3.2 Future

  • The Earnings Per Share is expected to grow by 298.44% on average over the next years. This is a very strong growth
  • AAOI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 122.91% yearly.
EPS Next Y397.15%
EPS Next 2Y298.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year116.19%
Revenue Next 2Y122.91%
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
AAOI Yearly EPS VS EstimatesAAOI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 1 -1 2 3 4

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2

4. AAOI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for AAOI. In the last year negative earnings were reported.
  • Based on the Price/Forward Earnings ratio of 176.34, the valuation of AAOI can be described as expensive.
  • Based on the Price/Forward Earnings ratio, AAOI is valued a bit more expensive than 61.70% of the companies in the same industry.
  • AAOI is valuated expensively when we compare the Price/Forward Earnings ratio to 37.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 176.34
AAOI Price Earnings VS Forward Price EarningsAAOI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -200 -400

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 5

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • AAOI's earnings are expected to grow with 298.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y298.44%
EPS Next 3YN/A

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AAOI Dividend Analysis

5.1 Amount

  • No dividends for AAOI!.
Industry RankSector Rank
Dividend Yield 0%

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AAOI Fundamentals: All Metrics, Ratios and Statistics

APPLIED OPTOELECTRONICS INC

NASDAQ:AAOI (4/14/2026, 3:19:01 PM)

146.72

-6.47 (-4.22%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-26
Earnings (Next)04-30
Inst Owners71.5%
Inst Owner Change0.06%
Ins Owners3.56%
Ins Owner Change-6.4%
Market Cap11.03B
Revenue(TTM)455.71M
Net Income(TTM)-38.23M
Analysts76.92
Price Target85.85 (-41.49%)
Short Float %12.68%
Short Ratio0.84
Dividend
Industry RankSector 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)2
Avg EPS beat(2)45.75%
Min EPS beat(2)0.19%
Max EPS beat(2)91.31%
EPS beat(4)3
Avg EPS beat(4)6.5%
Min EPS beat(4)-111.4%
Max EPS beat(4)91.31%
EPS beat(8)4
Avg EPS beat(8)-0.43%
EPS beat(12)7
Avg EPS beat(12)644.37%
EPS beat(16)11
Avg EPS beat(16)487.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.94%
Min Revenue beat(2)-2.9%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.6%
Max Revenue beat(4)-0.98%
Revenue beat(8)1
Avg Revenue beat(8)-2.75%
Revenue beat(12)1
Avg Revenue beat(12)-3.89%
Revenue beat(16)1
Avg Revenue beat(16)-4.14%
PT rev (1m)125.45%
PT rev (3m)125.45%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)53.92%
EPS NY rev (1m)-11.91%
EPS NY rev (3m)47.19%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)7.48%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)31.44%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 176.34
P/S 24.21
P/FCF N/A
P/OCF N/A
P/B 15.03
P/tB 15.11
EV/EBITDA N/A
EPS(TTM)-0.28
EYN/A
EPS(NY)0.83
Fwd EY0.57%
FCF(TTM)-4.71
FCFYN/A
OCF(TTM)-2.32
OCFYN/A
SpS6.06
BVpS9.76
TBVpS9.71
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -3.27%
ROE -5.21%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 30.04%
FCFM N/A
ROA(3y)-17.27%
ROA(5y)-16%
ROE(3y)-37.6%
ROE(5y)-34.01%
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 3Y25.83%
GM growth 5Y6.9%
F-Score4
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 648.21%
Cap/Sales 39.39%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.63
Quick Ratio 1.91
Altman-Z 15.99
F-Score4
WACC9.6%
ROIC/WACCN/A
Cap/Depr(3y)302.73%
Cap/Depr(5y)191.49%
Cap/Sales(3y)20.48%
Cap/Sales(5y)13.42%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y397.15%
EPS Next 2Y298.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)82.75%
Revenue growth 3Y26.94%
Revenue growth 5Y14.2%
Sales Q2Q%33.91%
Revenue Next Year116.19%
Revenue Next 2Y122.91%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y23%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year473.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-212.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-150.88%
OCF growth 3YN/A
OCF growth 5YN/A

APPLIED OPTOELECTRONICS INC / AAOI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for APPLIED OPTOELECTRONICS INC?

ChartMill assigns a fundamental rating of 4 / 10 to AAOI.


Can you provide the valuation status for APPLIED OPTOELECTRONICS INC?

ChartMill assigns a valuation rating of 2 / 10 to APPLIED OPTOELECTRONICS INC (AAOI). This can be considered as Overvalued.


What is the profitability of AAOI stock?

APPLIED OPTOELECTRONICS INC (AAOI) has a profitability rating of 1 / 10.


Can you provide the expected EPS growth for AAOI stock?

The Earnings per Share (EPS) of APPLIED OPTOELECTRONICS INC (AAOI) is expected to grow by 397.15% in the next year.