Applied Optoelectronics, Inc. (AAOI) Stock Analysis
Market Closed
Sector: Technology · Industry: Semiconductors & Related Devices
What's happening with AAOI
Price History
5-Year Weekly Candlestick Chart
Profile
Strong financial health; profitability, earnings quality, valuation and growth lag behind.
How is each axis scored?
- Valuation25/100 · Weak
- P/E vs own history (n/a)10/25
- FCF yield (-4.4%)0/25
- P/S (18.7x)5/25
- EV/EBIT (n/a)10/25
- Growth25/100 · Weak
- Revenue CAGR (21.1%)25/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (n/a)0/25
- Profitability0/100 · Weak
- ROIC (-7.0%)0/25
- ROE (-3.9%)0/25
- Net margin (-8.5%)0/25
- Operating margin (-11.6%)0/25
- Financial Health75/100 · Strong
- Altman Z (11.23)25/25
- Current ratio (3.83)25/25
- Interest coverage (-31.2x)0/25
- Net cash / debt (Net cash)25/25
- Quality22/100 · Weak
- Piotroski F (4/9)10/25
- Beneish M (-0.62)6/25
- FCF conversion (n/a)0/25
- Margin stability (σ 20.1%)6/25
About Applied Optoelectronics, Inc.
Applied Optoelectronics Inc is a provider of fiber-optic networking products, for four networking end-markets; internet data center, CATV, telecom, and FTTH. Show more
The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies, and modules to meet turn-key equipment. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance. The Company has manufacturing and research and development facilities located in the U.S., Taiwan, and China.
Headquarters: SUGAR LAND, TX · Employees: 4,691 · Website ↗
Analyst Consensus
BuyWall Street consensus estimates — not a PMP forecast · Updated Sep 21, 2026
Insider Transactions
Recent SEC Form 4 filings
- SellOpen market sale · filed 2026-08-12-4000 sh2026-08-10
- SellOpen market sale · filed 2026-08-04-4715 sh2026-08-04
- BuyGrant / award · filed 2026-08-04+9.3K sh2026-07-31
- SellTax withholding · filed 2026-07-23-407 sh2026-07-22
- SellTax withholding · filed 2026-07-23-516 sh2026-07-22
+3 more recent filings
Key Metrics
Financial snapshot — pillar inputs plus per-share and market context
Valuation
25EP/E (TTM)—
Price / TTM EPS (own statements)
P/FCF627.1xD
Grade D: Exp.Price / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield-4.4%D
Grade D: NegativeTTM FCF / Market Cap — vs own 5Y history: -42.7%–-2.2% · 77th pct
P/S (TTM)18.66xD
Grade D: Exp.Price / TTM Revenue (own statements) — vs own 5Y history: 0.2x–33.4x · 94th pct
EV/EBITDA709.2xD
Grade D: Exp.Enterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales14.5xD
Grade D: V.Exp.Enterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E29.7xC
Grade C: Exp.Price / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio8.55xD
Grade D: V.Exp.Price to Book Value. Neg. equity = heavy buybacks
PEG Ratio—
Finnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
0EROIC-7.0%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE-3.9%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA-3.8%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin-8.5%D
Grade D: LowNet Income / Revenue
Operating Margin-11.6%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin29.6%D
Grade D: LowGross Profit / Revenue
FCF Margin-82.4%D
Grade D: LowFCF / Revenue
True FCF Margin-85.1%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Financial Health
75B+Altman Z-Score11.23A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio3.83xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.79xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage-31.2xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT—
Leverage. <2x Low, >4x High
Debt/Equity0.27xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt—
Cash covers how much of total debt. >1 = could repay all debt from cash
Growth
25ERevenue CAGR21.1%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Forward Growth—
Implied 1Y EPS growth from forward P/E vs our TTM EPS. Sparse — only where forward estimates exist
Dilution (5Y)+187.4%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue2.7%A
Grade A: LowTTM stock-based comp / TTM Revenue
Quality
8/10 Loss Years22EPiotroski F-Score4/9C
Grade C: AvgFinancial strength 0–9. >7 Strong
Beneish M-Score-0.62D
Grade D: RiskyEarnings manipulation risk. < -2.22 Safe
FCF Conversion—
FCF / Net Income
Margin Stability20.1%D
Grade D: VolatileEBIT margin std deviation. Lower = stable
Capex / Revenue41.2%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.39xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Per Share
EPS (TTM)—
TTM net income per share (Finnhub fallback)
Cash / Share$2.75
Cash & short-term investments per share (Finnhub)
Book Value / Share$9.79
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt—
Total debt obligations (short + long term)
Cash & Equiv.$439.70M
Cash and short-term investments
Net Debt—
Total Debt minus Cash. Negative = Net Cash position
Total Equity$1.11B
Shareholders' equity (book value)
Asset / Liability3.40xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$9.46B
Current Market Capitalization
Beta3.98D
Grade D: H.VolPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
Takeaway
Excelentnú finančnú stabilitu a nulový dlh AAOI devalvuje nulová profitabilita so záporným FCF výnosom, čo z nej aktuálne robí neatraktívnu investíciu spaľujúcu hotovosť.
Company is effectively debt-free after netting cash.
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Mar 2026 · Ratio snapshot Sep 22, 2026
Key Insights: Applied Optoelectronics, Inc. (AAOI)
Composite verdict for Applied Optoelectronics, Inc.: Excelentnú finančnú stabilitu a nulový dlh AAOI devalvuje nulová profitabilita so záporným FCF výnosom, čo z nej aktuálne robí neatraktívnu investíciu spaľujúcu hotovosť.. Piotroski F-Score of 4/9 indicates mixed fundamentals for Applied Optoelectronics, Inc.. Altman Z-Score of 11.23 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -0.62 is above the −1.78 flag threshold, a signal that reported earnings warrant closer scrutiny. Revenue has compounded at roughly 21% annually — a strong growth profile.
- Free-cash-flow margin is negative (-82%) — the business currently burns cash.
- Company is effectively debt-free after netting cash.
- Interest coverage of -31.2× leaves little room for earnings shocks.
- Applied Optoelectronics, Inc. posted a net loss in 8 of 10 available completed fiscal years (2016–2025).
- At a valuation score of 25/100, AAOI trades at a premium to its historical multiples.
See how AAOI ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all AAOI moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Sep 21 | After-hours | 111.44 | +5.96% | 3.97 |
Frequently Asked Questions about AAOI
Is AAOI stock a buy right now?
PreMarketPrice's quantitative model rates Applied Optoelectronics, Inc.'s financial health at 75/100 — Excelentnú finančnú stabilitu a nulový dlh AAOI devalvuje nulová profitabilita so záporným FCF výnosom, čo z nej aktuálne robí neatraktívnu investíciu spaľujúcu hotovosť.. This is a data-driven snapshot of fundamentals, not investment advice.
Is AAOI stock overvalued?
Applied Optoelectronics, Inc. trades at a trailing P/E of n/a and our valuation score rates it 25/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Applied Optoelectronics, Inc. report earnings?
No confirmed earnings date is currently scheduled for AAOI. The Earnings section lists recent reports and updates as dates are announced.
What sector does Applied Optoelectronics, Inc. operate in?
Applied Optoelectronics, Inc. operates in the Technology sector, within the Semiconductors & Related Devices industry. The Related Stocks section lists sector peers for comparison.
What does Applied Optoelectronics, Inc. do?
Applied Optoelectronics Inc is a provider of fiber-optic networking products, for four networking end-markets; internet data center, CATV, telecom, and FTTH.
About Applied Optoelectronics, Inc. (AAOI) Stock
Applied Optoelectronics, Inc. (AAOI) is a US-listed stock operating in the Technology sector, specifically the Semiconductors & Related Devices industry. Real-time pricing data for Applied Optoelectronics, Inc. is available on this page with a market capitalization of $9.5 billion. The financial health score for AAOI is 75/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for AAOI stock.
AAOI Stock Analysis & Key Metrics
On PreMarketPrice, you can track Applied Optoelectronics, Inc. (AAOI) across multiple dimensions:
- Pre-market price & movement: Real-time AAOI stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for AAOI with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Applied Optoelectronics, Inc. across multiple reporting periods.
- Financial health score: A composite score of 75/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for AAOI.
- Sector peers: Compare AAOI against 10 other technology stocks on key financial metrics.
Is AAOI a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Applied Optoelectronics, Inc. (AAOI) as an investment. The financial health score of 75/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Applied Optoelectronics, Inc. (AAOI) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.