APPLIED OPTOELECTRONICS INC (AAOI)
US03823U1025 - Common Stock
We assign a fundamental rating of 2 out of 10 to AAOI. AAOI was compared to 51 industry peers in the Communications Equipment industry. AAOI has a bad profitability rating. Also its financial health evaluation is rather negative. AAOI is quite expensive at the moment. It does show a decent growth rate.
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.
1.2 Ratios
AAOI has a Return On Assets of -20.73%. This is in the lower half of the industry: AAOI underperforms 78.43% of its industry peers.
AAOI has a worse Return On Equity (-38.68%) than 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.73% | ||
| ROE | -38.68% | ||
| ROIC | N/A |
ROA(3y)-14.2%
ROA(5y)-13.78%
ROE(3y)-27.77%
ROE(5y)-25.7%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 28.50%, AAOI is not doing good in the industry: 78.43% of the companies in the same industry are doing better.
AAOI's Gross Margin has declined 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 | 28.5% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.94%
GM growth 5Y-3.78%
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.
AAOI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AAOI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.60 indicates that AAOI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.60, AAOI is doing good in the industry, outperforming 78.43% of the companies in the same industry.
AAOI has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AAOI (0.44) is worse than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.6 |
ROIC/WACCN/A
WACC9.17%
2.3 Liquidity
AAOI has a Current Ratio of 1.64. 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 Current ratio of 1.64 is on the low side compared to the rest of the industry. AAOI is outperformed by 68.63% of its industry peers.
AAOI has a Quick Ratio of 1.64. This is a bad value and indicates that AAOI is not financially healthy enough and could expect problems in meeting its short term obligations.
AAOI's Quick ratio of 0.97 is on the low side compared to the rest of the industry. AAOI is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
AAOI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.57%.
AAOI shows a decrease in Revenue. In the last year, the revenue decreased by -2.31%.
AAOI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.04% yearly.
EPS 1Y (TTM)-8.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-320%
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y-2.47%
Revenue growth 5Y-4.04%
Sales Q2Q%4.16%
3.2 Future
AAOI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 61.24% yearly.
AAOI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 26.17% yearly.
EPS Next Y-46.27%
EPS Next 2Y80.05%
EPS Next 3Y61.24%
EPS Next 5YN/A
Revenue Next Year10.61%
Revenue Next 2Y47%
Revenue Next 3Y26.17%
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
The Price/Earnings Ratio is negative for AAOI. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 48.47, which means the current valuation is very expensive for AAOI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAOI is on the same level as its industry peers.
AAOI's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 48.47 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as AAOI's earnings are expected to grow with 61.24% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y80.05%
EPS Next 3Y61.24%
5. Dividend
5.1 Amount
No dividends for AAOI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
APPLIED OPTOELECTRONICS INC
NASDAQ:AAOI (11/11/2024, 8:18:30 PM)
Premarket: 27.6 -0.69 (-2.44%)28.29
+0.53 (+1.91%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 48.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -20.73% | ||
| ROE | -38.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 28.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-46.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.31%
Revenue growth 3Y-2.47%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y