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APPLIED OPTOELECTRONICS INC (AAOI) Stock Fundamental Analysis

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

14.71  +1.92 (+15.01%)

Premarket: 15.1 +0.39 (+2.65%)

Fundamental Rating

2

AAOI gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 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

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.
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 has a Return On Assets of -34.14%. This is in the lower half of the industry: AAOI underperforms 77.55% of its industry peers.
AAOI has a Return On Equity of -81.50%. This is in the lower half of the industry: AAOI underperforms 73.47% of its industry peers.
Industry RankSector Rank
ROA -34.14%
ROE -81.5%
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's Gross Margin of 24.78% is on the low side compared to the rest of the industry. AAOI is outperformed by 79.59% 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 RankSector Rank
OM N/A
PM (TTM) N/A
GM 24.78%
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.
The number of shares outstanding for AAOI has been increased compared to 1 year ago.
Compared to 5 years ago, AAOI has more shares outstanding
AAOI has a worse debt/assets ratio than last year.
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

Based on the Altman-Z score of 0.55, we must say that AAOI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.55, AAOI perfoms like the industry average, outperforming 46.94% of the companies in the same industry.
AAOI has a Debt/Equity ratio of 0.69. This is a neutral value indicating AAOI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, AAOI is not doing good in the industry: 69.39% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF N/A
Altman-Z 0.55
ROIC/WACCN/A
WACC8.94%
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 1.77. This is a normal value and indicates that AAOI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of AAOI (1.77) is comparable to the rest of the industry.
AAOI has a Quick Ratio of 1.25. 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 (1.25) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.25
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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5

3. Growth

3.1 Past

AAOI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -74.47%.
Looking at the last year, AAOI shows a quite strong growth in Revenue. The Revenue has grown by 14.62% in the last year.
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)-74.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-150%
Revenue 1Y (TTM)14.62%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%65.87%

3.2 Future

The Earnings Per Share is expected to grow by 93.59% 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 85.44% yearly.
EPS Next Y175.47%
EPS Next 2Y93.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year109.6%
Revenue Next 2Y85.44%
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 800M
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.
Based on the Price/Forward Earnings ratio of 23.77, the valuation of AAOI can be described as rather expensive.
AAOI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.49. AAOI is around the same levels.
Industry RankSector Rank
PE N/A
Fwd PE 23.77
AAOI Price Earnings VS Forward Price EarningsAAOI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

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

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 93.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y93.59%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

AAOI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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APPLIED OPTOELECTRONICS INC

NASDAQ:AAOI (5/1/2025, 8:43:42 PM)

Premarket: 15.1 +0.39 (+2.65%)

14.71

+1.92 (+15.01%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)05-08 2025-05-08/amc
Inst Owners65.18%
Inst Owner Change1.49%
Ins Owners4.3%
Ins Owner Change0.31%
Market Cap739.18M
Analysts80
Price Target36.72 (149.63%)
Short Float %20.17%
Short Ratio2.04
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)0
Avg EPS beat(2)-15.83%
Min EPS beat(2)-22.73%
Max EPS beat(2)-8.93%
EPS beat(4)1
Avg EPS beat(4)-7.35%
Min EPS beat(4)-22.73%
Max EPS beat(4)6.15%
EPS beat(8)4
Avg EPS beat(8)963.3%
EPS beat(12)8
Avg EPS beat(12)647.75%
EPS beat(16)12
Avg EPS beat(16)491.14%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)2.04%
Revenue beat(4)1
Avg Revenue beat(4)-3.02%
Min Revenue beat(4)-8.53%
Max Revenue beat(4)2.04%
Revenue beat(8)1
Avg Revenue beat(8)-4.59%
Revenue beat(12)1
Avg Revenue beat(12)-4.69%
Revenue beat(16)2
Avg Revenue beat(16)-3.84%
PT rev (1m)6.51%
PT rev (3m)5.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2171.43%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-17.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-3.82%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 23.77
P/S 2.96
P/FCF N/A
P/OCF N/A
P/B 3.23
P/tB 3.28
EV/EBITDA N/A
EPS(TTM)-0.82
EYN/A
EPS(NY)0.62
Fwd EY4.21%
FCF(TTM)-2.26
FCFYN/A
OCF(TTM)-1.38
OCFYN/A
SpS4.96
BVpS4.56
TBVpS4.49
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -34.14%
ROE -81.5%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 24.78%
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-Score1
Asset Turnover0.46
Health
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 212.66%
Cap/Sales 17.61%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.77
Quick Ratio 1.25
Altman-Z 0.55
F-Score1
WACC8.94%
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)-74.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-150%
EPS Next Y175.47%
EPS Next 2Y93.59%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.62%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%65.87%
Revenue Next Year109.6%
Revenue Next 2Y85.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-71.15%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year240.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-544.68%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-776.86%
OCF growth 3YN/A
OCF growth 5YN/A