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APPLIED OPTOELECTRONICS INC (AAOI) Stock Fundamental Analysis

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

27.04  -0.46 (-1.67%)

After market: 27.64 +0.6 (+2.22%)

Fundamental Rating

2

Taking everything into account, AAOI scores 2 out of 10 in our fundamental rating. AAOI was compared to 51 industry peers in the Communications Equipment industry. Both the profitability and financial health of AAOI have multiple concerns. 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

In the past year AAOI has reported negative net income.
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 0 50M -50M

1.2 Ratios

The Return On Assets of AAOI (-19.73%) is worse than 78.00% of its industry peers.
The Return On Equity of AAOI (-38.14%) is worse than 66.00% of its industry peers.
Industry RankSector Rank
ROA -19.73%
ROE -38.14%
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
AAOI Yearly ROA, ROE, ROICAAOI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20 -30

1.3 Margins

AAOI has a worse Gross Margin (26.09%) than 78.00% of its industry peers.
AAOI's Gross Margin has declined in the last couple of years.
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 26.09%
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%
AAOI Yearly Profit, Operating, Gross MarginsAAOI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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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.
The number of shares outstanding for AAOI has been increased compared to 5 years ago.
Compared to 1 year ago, AAOI has an improved debt to assets ratio.
AAOI Yearly Shares OutstandingAAOI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
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 100M 200M 300M 400M

2.2 Solvency

AAOI has an Altman-Z score of 2.96. 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 (2.96) is better than 72.00% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that AAOI is not too dependend on debt financing.
AAOI has a Debt to Equity ratio of 0.41. This is in the lower half of the industry: AAOI underperforms 64.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Altman-Z 2.96
ROIC/WACCN/A
WACC9.27%
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 0 100M 200M 300M

2.3 Liquidity

A Current Ratio of 1.61 indicates that AAOI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.61, AAOI is doing worse than 60.00% of the companies in the same industry.
AAOI has a Quick Ratio of 1.06. 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 of 1.06. This is in the lower half of the industry: AAOI underperforms 66.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.06
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 50M 100M 150M 200M

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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 -4.19%.
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)-4.19%
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 68.17% yearly.
Based on estimates for the next years, AAOI will show a very strong growth in Revenue. The Revenue will grow by 43.21% on average per year.
EPS Next Y-75.73%
EPS Next 2Y96.06%
EPS Next 3Y68.17%
EPS Next 5YN/A
Revenue Next Year12%
Revenue Next 2Y54.78%
Revenue Next 3Y43.21%
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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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for AAOI. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 31.20, AAOI can be considered very expensive at the moment.
AAOI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AAOI is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 31.2
AAOI Price Earnings VS Forward Price EarningsAAOI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20

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 1 -1 2 3 4

4.3 Compensation for Growth

AAOI's earnings are expected to grow with 68.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y96.06%
EPS Next 3Y68.17%

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0

5. Dividend

5.1 Amount

No dividends for AAOI!.
Industry RankSector Rank
Dividend Yield N/A

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APPLIED OPTOELECTRONICS INC

NASDAQ:AAOI (2/21/2025, 8:00:00 PM)

After market: 27.64 +0.6 (+2.22%)

27.04

-0.46 (-1.67%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)02-26 2025-02-26/amc
Inst Owners65.18%
Inst Owner Change9.28%
Ins Owners4.3%
Ins Owner Change-6.77%
Market Cap1.30B
Analysts78
Price Target34.17 (26.37%)
Short Float %20.89%
Short Ratio2.94
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)-8.29%
Min EPS beat(2)-22.73%
Max EPS beat(2)6.15%
EPS beat(4)2
Avg EPS beat(4)1930.66%
Min EPS beat(4)-22.73%
Max EPS beat(4)7743.14%
EPS beat(8)5
Avg EPS beat(8)969.25%
EPS beat(12)9
Avg EPS beat(12)649.48%
EPS beat(16)13
Avg EPS beat(16)492.67%
Revenue beat(2)1
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-3.9%
Max Revenue beat(2)2.04%
Revenue beat(4)1
Avg Revenue beat(4)-4.87%
Min Revenue beat(4)-9.09%
Max Revenue beat(4)2.04%
Revenue beat(8)1
Avg Revenue beat(8)-4.57%
Revenue beat(12)2
Avg Revenue beat(12)-4.5%
Revenue beat(16)2
Avg Revenue beat(16)-3.84%
PT rev (1m)-2.19%
PT rev (3m)109.38%
EPS NQ rev (1m)12.2%
EPS NQ rev (3m)-107.42%
EPS NY rev (1m)-0.31%
EPS NY rev (3m)-20.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 31.2
P/S 6.18
P/FCF N/A
P/OCF N/A
P/B 6.11
P/tB 6.21
EV/EBITDA N/A
EPS(TTM)-0.76
EYN/A
EPS(NY)0.87
Fwd EY3.21%
FCF(TTM)-1.36
FCFYN/A
OCF(TTM)-0.91
OCFYN/A
SpS4.37
BVpS4.43
TBVpS4.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -19.73%
ROE -38.14%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 26.09%
FCFM 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
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 3Y7.94%
GM growth 5Y-3.78%
F-Score3
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 107.46%
Cap/Sales 10.37%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.61
Quick Ratio 1.06
Altman-Z 2.96
F-Score3
WACC9.27%
ROIC/WACCN/A
Cap/Depr(3y)32.19%
Cap/Depr(5y)57%
Cap/Sales(3y)3.37%
Cap/Sales(5y)6.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-320%
EPS Next Y-75.73%
EPS Next 2Y96.06%
EPS Next 3Y68.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.19%
Revenue growth 3Y-2.47%
Revenue growth 5Y-4.04%
Sales Q2Q%4.16%
Revenue Next Year12%
Revenue Next 2Y54.78%
Revenue Next 3Y43.21%
Revenue Next 5YN/A
EBIT growth 1Y-24.72%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-75.2%
EBIT Next 3Y127.53%
EBIT Next 5YN/A
FCF growth 1Y-301.77%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-301.47%
OCF growth 3YN/A
OCF growth 5YN/A