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APPLIED OPTOELECTRONICS INC (AAOI) Stock Fundamental Analysis

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

27.2504  -1.99 (-6.8%)

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. 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.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

AAOI had negative earnings in the past year.
AAOI had a negative operating cash flow in the past year.
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

Looking at the Return On Assets, with a value of -26.79%, AAOI is doing worse than 75.00% of the companies in the same industry.
AAOI has a worse Return On Equity (-55.90%) than 70.83% of its industry peers.
Industry RankSector Rank
ROA -26.79%
ROE -55.9%
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

The Gross Margin of AAOI (27.47%) is worse than 77.08% 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 27.47%
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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3

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.
AAOI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AAOI is higher compared to a year ago.
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

An Altman-Z score of 2.43 indicates that AAOI is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of AAOI (2.43) is better than 68.75% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that AAOI is somewhat dependend on debt financing.
The Debt to Equity ratio of AAOI (0.52) is worse than 64.58% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Altman-Z 2.43
ROIC/WACCN/A
WACC9.81%
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 1.88. 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 (1.88) is comparable to the rest of the industry.
AAOI has a Quick Ratio of 1.34. This is a normal value and indicates that AAOI is financially healthy and should not expect problems in meeting its short term obligations.
AAOI has a Quick ratio (1.34) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.88
Quick Ratio 1.34
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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6

3. Growth

3.1 Past

AAOI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
AAOI shows a strong growth in Revenue. In the last year, the Revenue has grown by 50.35%.
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)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%93.55%
Revenue 1Y (TTM)50.35%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%145.52%

3.2 Future

AAOI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 81.79% yearly.
The Revenue is expected to grow by 71.98% on average over the next years. This is a very strong growth
EPS Next Y104.98%
EPS Next 2Y81.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year96.1%
Revenue Next 2Y71.98%
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.
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
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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3

4. Valuation

4.1 Price/Earnings Ratio

AAOI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
AAOI is valuated quite expensively with a Price/Forward Earnings ratio of 25.47.
AAOI's Price/Forward Earnings ratio is in line with the industry average.
AAOI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 25.47
AAOI Price Earnings VS Forward Price EarningsAAOI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40

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

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 81.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y81.79%
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 (7/16/2025, 12:14:58 PM)

27.2504

-1.99 (-6.8%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-08 2025-05-08/amc
Earnings (Next)07-31 2025-07-31/amc
Inst Owners57.57%
Inst Owner Change0%
Ins Owners5.07%
Ins Owner Change18.06%
Market Cap1.53B
Analysts80
Price Target31.01 (13.8%)
Short Float %23.45%
Short Ratio2.57
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)1
Avg EPS beat(2)18.49%
Min EPS beat(2)-8.93%
Max EPS beat(2)45.91%
EPS beat(4)2
Avg EPS beat(4)5.1%
Min EPS beat(4)-22.73%
Max EPS beat(4)45.91%
EPS beat(8)5
Avg EPS beat(8)973.25%
EPS beat(12)8
Avg EPS beat(12)650.9%
EPS beat(16)12
Avg EPS beat(16)492.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.58%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-1.48%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)2.04%
Revenue beat(8)1
Avg Revenue beat(8)-4.36%
Revenue beat(12)1
Avg Revenue beat(12)-4.62%
Revenue beat(16)2
Avg Revenue beat(16)-3.85%
PT rev (1m)0%
PT rev (3m)-20.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-186.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-93.51%
Revenue NQ rev (1m)1.16%
Revenue NQ rev (3m)-7.38%
Revenue NY rev (1m)1.74%
Revenue NY rev (3m)-6.44%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 25.47
P/S 4.96
P/FCF N/A
P/OCF N/A
P/B 4.95
P/tB 5.01
EV/EBITDA N/A
EPS(TTM)-0.53
EYN/A
EPS(NY)1.07
Fwd EY3.93%
FCF(TTM)-2.82
FCFYN/A
OCF(TTM)-1.64
OCFYN/A
SpS5.5
BVpS5.5
TBVpS5.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -26.79%
ROE -55.9%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 27.47%
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-Score3
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 310.98%
Cap/Sales 21.55%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.88
Quick Ratio 1.34
Altman-Z 2.43
F-Score3
WACC9.81%
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)0%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%93.55%
EPS Next Y104.98%
EPS Next 2Y81.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)50.35%
Revenue growth 3Y5.63%
Revenue growth 5Y5.49%
Sales Q2Q%145.52%
Revenue Next Year96.1%
Revenue Next 2Y71.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-19.07%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year195.85%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-586.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-364.21%
OCF growth 3YN/A
OCF growth 5YN/A