26.45 USD
+0.21 (+0.8%)
Taking everything into account, AAOI scores 2 out of 10 in our fundamental rating. AAOI was compared to 48 industry peers in the Communications Equipment industry. AAOI may be in some trouble as it scores bad on both profitability and health. AAOI is quite expensive at the moment. It does show a decent growth rate.
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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -15.93%, AAOI is doing worse than 77.08% of the companies in the same industry.
The Return On Equity of AAOI (-27.88%) is worse than 70.83% 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 79.17% of its industry peers.
In the last couple of years the Gross Margin of AAOI has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for AAOI so they could not be analyzed.
| 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.
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.
2.2 Solvency
AAOI has an Altman-Z score of 2.53. 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 has a Altman-Z score of 2.53. This is in the better half of the industry: AAOI outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that AAOI is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, AAOI is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.53 |
ROIC/WACCN/A
WACC8.98%
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's Current ratio of 2.31 is fine compared to the rest of the industry. AAOI outperforms 66.67% of its industry peers.
A Quick Ratio of 1.63 indicates that AAOI should not have too much problems paying its short term obligations.
AAOI has a Quick ratio of 1.63. This is comparable to the rest of the industry: AAOI outperforms 52.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
AAOI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.84%, which is quite impressive.
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
Based on estimates for the next years, AAOI will show a very strong growth in Earnings Per Share. The EPS will grow by 48.97% 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 63.57% on average per year.
EPS Next Y71.37%
EPS Next 2Y75.38%
EPS Next 3Y48.97%
EPS Next 5YN/A
Revenue Next Year92.98%
Revenue Next 2Y76.98%
Revenue Next 3Y63.57%
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
AAOI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 29.98 indicates a quite expensive valuation of AAOI.
The rest of the industry has a similar Price/Forward Earnings ratio as AAOI.
The average S&P500 Price/Forward Earnings ratio is at 35.40. AAOI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.98 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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 48.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y75.38%
EPS Next 3Y48.97%
5. Dividend
5.1 Amount
AAOI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AAOI (12/5/2025, 12:54:06 PM)
26.45
+0.21 (+0.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners56.17%
Inst Owner Change17.59%
Ins Owners4.59%
Ins Owner Change-0.4%
Market Cap1.81B
Revenue(TTM)421.71M
Net Income(TTM)-155.90M
Analysts78.46
Price Target32.13 (21.47%)
Short Float %19.73%
Short Ratio2.44
Dividend
| Industry Rank | Sector 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)-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)6.78%
PT rev (3m)6.78%
EPS NQ rev (1m)-452.5%
EPS NQ rev (3m)-452.5%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)-8.09%
Revenue NQ rev (3m)-8.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 29.98 | ||
| P/S | 4.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.23 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.29
EYN/A
EPS(NY)0.88
Fwd EY3.34%
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 | 2.53 |
F-Score4
WACC8.98%
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 Y71.37%
EPS Next 2Y75.38%
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 Year92.98%
Revenue Next 2Y76.98%
Revenue Next 3Y63.57%
Revenue Next 5YN/A
EBIT growth 1Y28.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year229.23%
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 2 / 10 to AAOI.
What is the valuation status of APPLIED OPTOELECTRONICS INC (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.
Can you provide the financial health for AAOI stock?
The financial health rating of APPLIED OPTOELECTRONICS INC (AAOI) is 3 / 10.
What is the expected EPS growth for APPLIED OPTOELECTRONICS INC (AAOI) stock?
The Earnings per Share (EPS) of APPLIED OPTOELECTRONICS INC (AAOI) is expected to grow by 71.37% in the next year.