Stock Analysis
Applied Optoelectronics, Inc.AAOI
Sector: Technology · Industry: Semiconductors & Related Devices
AnalystsBuy13 analystsPrice is 28% of the way from the year's low to its high.
Cash covers 167% of debt · Q2 2026.
PMP Verdict
Weak fundamentals, expensive
Strengths
- Financial Health75
Risks
- Valuation25
- Profitability0
Weak fundamentals at a demanding price.
Market context
-9.7% today· Z 1.6σ
Bull Case
- ✓Altman Z 6.9 — safe-zone balance sheet
- ✓Revenue CAGR 21.1% — durable top-line growth
What's happening with AAOI
Profile
Strong financial health; profitability, moat, valuation, growth and earnings quality lag behind.
How is each axis scored?
- Valuation25/100 · Weak
- P/E vs own history (n/a)10/25
- FCF yield (-13.9%)0/25
- P/S (10.7x)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 (-3.6%)0/25
- ROE (-3.4%)0/25
- Net margin (-9.6%)0/25
- Operating margin (-11.3%)0/25
- Financial Health75/100 · Strong
- Altman Z (6.92)25/25
- Current ratio (2.78)25/25
- Interest coverage (-4.4x)0/25
- Net cash / debt (Net cash)25/25
- Quality27/100 · Weak
- Piotroski F (5/9)15/25
- Beneish M (-0.49)6/25
- FCF conversion (n/a)0/25
- Margin stability (σ 19.7%)6/25
- Moat6/100 · Weak
- ROIC >12% years (1/10 yrs)0/25
- Median gross margin (25.9%)6/25
- FCF-positive years (2/10 yrs)0/25
- Worst-year net margin (worst -74.9%)0/25
Risk Flags
- ⚠Beneish M -0.49 — earnings-manipulation flag
- ⚠Negative FCF margin (-1.5%) — burning cash
- ⚠8 loss-making years in recent history
- ⚠Interest coverage -4.4× — thin debt cushion
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 ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
25EP/E (TTM)—
Price / TTM EPS (own statements)
P/FCF514.1xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield-13.9%D
Grade D: NegativeTTM (OCF − CapEx) / Market Cap — vs own 5Y history: -42.7%–-2.2% · 43rd pct
P/S (TTM)10.72xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 0.2x–33.4x · 87th pct
EV/EBITDA577.3xD
Grade D: ExpensiveEnterprise value / EBITDA (Finnhub) — capital-structure neutral
EV/Sales11.8xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E31.9xC
Grade C: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio3.83xC
Grade C: ExpensivePrice 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-3.6%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE-3.4%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-9.6%D
Grade D: LowNet Income / Revenue
Operating Margin-11.3%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin28.9%D
Grade D: LowGross Profit / Revenue
FCF Margin-149.4%D
Grade D: LowFCF / Revenue
True FCF Margin-152.0%D
Grade D: LowTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
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
Implied EPS Growth—
Analyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+218.8%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income—
Stock-based comp/Net income. >30% = dilution risk
SBC / Revenue2.6%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
75B+Altman Z-Score6.92A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio2.78xA
Grade A: HighCurrent Assets/Liabilities
Quick Ratio1.92xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage-4.4xD
Grade D: RiskyEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT3.0xC
Grade C: MedLeverage. <2x Low, >4x High
Debt/Equity0.18xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt1.67xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
27EPiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-0.49D
Grade D: RiskyEarnings manipulation risk. < -2.22 Safe
FCF Conversion—
FCF / Net Income
Margin Stability19.7%D
Grade D: VolatileEBIT margin std deviation. Lower = stable
Capex / Revenue127.3%D
Grade D: HeavyTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.40xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Murry Stefan J. Filed | Murry Stefan J. | SellOpen market sale | -4000 | |
Yeh Shu-Hua (Joshua) Filed | Yeh Shu-Hua (Joshua) | SellOpen market sale | -6000 | |
BLACK RICHARD B Filed | BLACK RICHARD B | Gift | -2200 | |
Murry Stefan J. Filed | Murry Stefan J. | SellOpen market sale | -4000 | |
Chang Hung-Lun (Fred) Filed | Chang Hung-Lun (Fred) | SellOpen market sale | -32172 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Yeh Shu-Hua (Joshua) Filed | Yeh Shu-Hua (Joshua) | SellOpen market sale | -6000 | |
Murry Stefan J. Filed | Murry Stefan J. | SellOpen market sale | -4000 | |
Yeh Shu-Hua (Joshua) Filed | Yeh Shu-Hua (Joshua) | SellOpen market sale | -4715 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
6EROIC >12% Years1/10 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)25.9%D
Grade D: WeakMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years2/10 yrsD
Grade D: WeakShare of completed fiscal years with positive free cash flow
Net Margin Floor-74.9%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)—
TTM net income per share (Finnhub fallback)
Cash / Share$5.92
Cash & short-term investments per share (Finnhub)
Book Value / Share$19.77
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$300.14M
Total debt obligations (short + long term)
Cash & Equiv.$499.74M
Cash and short-term investments
Net Debt$-199.60MA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$1.67B
Shareholders' equity (book value)
Asset / Liability3.63xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$6.39B
Current Market Capitalization
Beta3.95D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
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 Jun 2026 · Ratio snapshot Oct 16, 2026
Key Insights: Applied Optoelectronics, Inc. (AAOI)
AAOI is down 9.75% at the last close. Piotroski F-Score of 5/9 indicates mixed fundamentals for Applied Optoelectronics, Inc.. Altman Z-Score of 6.92 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -0.49 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 (-149%) — the business currently burns cash.
- Company is effectively debt-free after netting cash.
- Interest coverage of -4.4× 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 |
|---|---|---|---|---|
| Oct 14 | Regular | 86.53 | -11.51% | -2.14 |
| Oct 14 | After-hours | 84.04 | -14.05% | -2.64 |
| Oct 8 | Regular | 105.29 | -14.08% | -3.35 |
| Oct 8 | After-hours | 107.99 | -11.87% | -2.83 |
| Sep 21 | After-hours | 111.44 | +5.96% | 3.97 |
Frequently Asked Questions about AAOI
What is the current Applied Optoelectronics, Inc. (AAOI) stock price?
AAOI is trading at $75.57 at the last market close, down 9.75% on the session. PreMarketPrice tracks AAOI pre-market, intraday and after-hours prices.
Is AAOI stock a buy right now?
PreMarketPrice's quantitative model rates Applied Optoelectronics, Inc.'s financial health at 75/100. 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. As of the latest update, Applied Optoelectronics, Inc. is trading at $75.57, down 9.75% on the day with a market capitalization of $6.4 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 6 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.