APPLIED OPTOELECTRONICS INC (AAOI) Stock Fundamental Analysis
USA - NASDAQ:AAOI - US03823U1025 - Common Stock
28.57 USD
-0.53 (-1.82%)
28.94 USD
+0.37 (+1.3%)
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 valied quite expensively at the moment, while it does show a decent growth rate.
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.
AAOI had negative earnings in each of the past 5 years.
In the past 5 years AAOI always reported negative operating cash flow.
1.2 Ratios
AAOI has a Return On Assets of -19.54%. This is in the lower half of the industry: AAOI underperforms 77.08% of its industry peers.
AAOI's Return On Equity of -36.64% is on the low side compared to the rest of the industry. AAOI is outperformed by 70.83% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
AAOI's Gross Margin of 28.88% is on the low side compared to the rest of the industry. AAOI is outperformed by 77.08% 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 Rank | Sector 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%
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
AAOI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AAOI is higher compared to a year ago.
2.2 Solvency
AAOI has an Altman-Z score of 2.68. 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.
The Altman-Z score of AAOI (2.68) is better than 60.42% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that AAOI is not too dependend on debt financing.
The Debt to Equity ratio of AAOI (0.39) is worse than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.68 |
ROIC/WACCN/A
WACC8.87%
2.3 Liquidity
AAOI has a Current Ratio of 2.11. This indicates that AAOI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AAOI (2.11) is comparable to the rest of the industry.
AAOI has a Quick Ratio of 1.47. This is a normal value and indicates that AAOI is financially healthy and should not expect problems in meeting its short term obligations.
AAOI's Quick ratio of 1.47 is in line compared to the rest of the industry. AAOI outperforms 47.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.47 |
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.
Looking at the last year, AAOI shows a quite strong growth in Revenue. The Revenue has grown by 14.57% in the last year.
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)14.57%
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 75.38% yearly.
The Revenue is expected to grow by 76.98% on average over the next years. This is a very strong growth
EPS Next Y71.37%
EPS Next 2Y75.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year92.98%
Revenue Next 2Y76.98%
Revenue Next 3YN/A
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 32.38 indicates a quite expensive valuation of AAOI.
AAOI's Price/Forward Earnings ratio is in line with the industry average.
AAOI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.38 |
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 75.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y75.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AAOI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
28.57
-0.53 (-1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners56.17%
Inst Owner Change-1.05%
Ins Owners4.59%
Ins Owner Change13.55%
Market Cap1.78B
Revenue(TTM)249.37M
Net Income(TTM)-155.72M
Analysts78.46
Price Target31.11 (8.89%)
Short Float %22.01%
Short Ratio2.55
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)-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)3.39%
PT rev (3m)-0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1373.33%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-675.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.38 | ||
| P/S | 4.84 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.19 | ||
| P/tB | 4.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.29
EYN/A
EPS(NY)0.88
Fwd EY3.09%
FCF(TTM)-3.92
FCFYN/A
OCF(TTM)-2.49
OCFYN/A
SpS5.9
BVpS6.81
TBVpS6.76
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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
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-Score5
Asset Turnover0.46
Health
| Industry Rank | Sector 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 | 2.68 |
F-Score5
WACC8.87%
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 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.57%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%82.08%
Revenue Next Year92.98%
Revenue Next 2Y76.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year229.23%
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
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.