APPLIED OPTOELECTRONICS INC (AAOI) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:AAOI • US03823U1025

48.4 USD
-0.09 (-0.19%)
At close: Feb 11, 2026
48.9 USD
+0.5 (+1.03%)
Pre-Market: 2/12/2026, 7:04:03 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to AAOI. AAOI was compared to 48 industry peers in the Communications Equipment industry. The financial health of AAOI is average, but there are quite some concerns on its profitability. AAOI is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

0

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.
  • 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 0 50M -50M -100M -150M

1.2 Ratios

  • AAOI's Return On Assets of -15.93% is on the low side compared to the rest of the industry. AAOI is outperformed by 83.33% of its industry peers.
  • AAOI's Return On Equity of -27.88% is on the low side compared to the rest of the industry. AAOI is outperformed by 75.00% of its industry peers.
Industry RankSector 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
AAOI Yearly ROA, ROE, ROICAAOI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80

1.3 Margins

  • The Gross Margin of AAOI (29.33%) is worse 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 RankSector 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%
AAOI Yearly Profit, Operating, Gross MarginsAAOI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

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
  • The number of shares outstanding for AAOI has been increased compared to 5 years ago.
  • AAOI has a worse debt/assets ratio than last year.
AAOI Yearly Shares OutstandingAAOI Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

  • AAOI has an Altman-Z score of 4.69. This indicates that AAOI is financially healthy and has little risk of bankruptcy at the moment.
  • AAOI has a better Altman-Z score (4.69) than 72.92% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.29, AAOI is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF N/A
Altman-Z 4.69
ROIC/WACCN/A
WACC9.31%
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 0 100M -100M 200M 300M

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.
  • The Current ratio of AAOI (2.31) is better than 68.75% of its industry peers.
  • A Quick Ratio of 1.63 indicates that AAOI should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.63, AAOI is in line with its industry, outperforming 52.08% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 1.63
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 100M 200M 300M

More info and screens

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

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 61.84% over the past year.
  • The Revenue has grown by 101.25% in the past year. This is a very strong growth!
  • AAOI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.49% yearly.
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 64.18% yearly.
  • The Revenue is expected to grow by 86.98% on average over the next years. This is a very strong growth
EPS Next Y53.57%
EPS Next 2Y63.99%
EPS Next 3Y64.18%
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.
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
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

More info and screens

Find the best growth stocksShow best growing peers

1

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 85.62 indicates a quite expensive valuation of AAOI.
  • AAOI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AAOI is more expensive than 60.42% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of AAOI to the average of the S&P500 Index (28.01), we can say AAOI is valued expensively.
Industry RankSector Rank
PE N/A
Fwd PE 85.62
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 -4 6 8

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 64.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y63.99%
EPS Next 3Y64.18%

More info and screens

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

0

5. Dividend

5.1 Amount

  • AAOI does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

APPLIED OPTOELECTRONICS INC

NASDAQ:AAOI (2/11/2026, 8:05:00 PM)

Premarket: 48.9 +0.5 (+1.03%)

48.4

-0.09 (-0.19%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-06
Earnings (Next)02-26
Inst Owners62.93%
Inst Owner Change-0.67%
Ins Owners4.15%
Ins Owner Change-2.97%
Market Cap3.30B
Revenue(TTM)421.71M
Net Income(TTM)-155.90M
Analysts76.92
Price Target38.08 (-21.32%)
Short Float %18.41%
Short Ratio2.32
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)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)0%
PT rev (3m)22.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-755.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-62.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.35%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-5.46%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 85.62
P/S 7.84
P/FCF N/A
P/OCF N/A
P/B 5.91
P/tB 5.95
EV/EBITDA N/A
EPS(TTM)-0.29
EYN/A
EPS(NY)0.57
Fwd EY1.17%
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 RankSector 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 RankSector 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 4.69
F-Score4
WACC9.31%
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 3Y64.18%
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 1 / 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.