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. While showing a medium growth rate, AAOI is valued expensive at the moment.
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.
AAOI had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
AAOI's Return On Assets of -19.73% is on the low side compared to the rest of the industry. AAOI is outperformed by 78.43% of its industry peers.
AAOI has a worse Return On Equity (-38.14%) than 68.63% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
With a Gross Margin value of 26.09%, AAOI is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
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 Rank | Sector 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%
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 has been reduced compared to a year ago.
2.2 Solvency
AAOI has an Altman-Z score of 3.88. This indicates that AAOI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.88, AAOI is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that AAOI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, AAOI is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.88 |
ROIC/WACCN/A
WACC9.36%
2.3 Liquidity
AAOI has a Current Ratio of 1.61. 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 Current ratio of 1.61. This is in the lower half of the industry: AAOI underperforms 68.63% of its industry peers.
A Quick Ratio of 1.06 indicates that AAOI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.06, AAOI is not doing good in the industry: 74.51% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.06 |
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%.
The Revenue has been decreasing by -4.04% on average over the past years.
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
Based on estimates for the next years, AAOI will show a very strong growth in Earnings Per Share. The EPS will grow by 61.24% on average per year.
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
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.
4. Valuation
4.1 Price/Earnings Ratio
AAOI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 64.35, the valuation of AAOI can be described as expensive.
AAOI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, AAOI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 64.35 |
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
AAOI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
APPLIED OPTOELECTRONICS INC
NASDAQ:AAOI (11/22/2024, 3:38:09 PM)
37.56
+2.06 (+5.8%)
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 Cap1.69B
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 | 64.35 | ||
| 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 | -19.73% | ||
| ROE | -38.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 26.09% | ||
| 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.06 | ||
| 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)-4.19%
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