AAOI

Applied Optoelectronics, Inc.

Fundamental data last updated:September 7, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide. It offers optical modules, lasers, subassemblies, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to internet data center operators, cable television and telecom equipment manufacturers, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.

 


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VALUATION

P/E

-272.19

Market Cap ($M USD)

$12.46B

Forward P/E

13.38

PEG

0.01

PRICE TO SALES

24.57

PRICE TO BOOK

10.67

EV / EBITDA

-707.80

5-Year Average P/E

Free Cash Flow Yield

-1.92%

DCF Value

$-35.72

Graham Number

N/A

Price to FCF

-52.15

EV to FCF

-51.00

Earnings Yield

-0.37%

FCF Yield

-1.92%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.57

Next Year EPS Growth Estimate

$11.60

Next Year Revenue Growth Estimate

$4.17B

Return on Equity (ROE)

-6.14%

FREE CASH FLOW

Operating Margin

-11.57%

Debt-to-Equity

0.23

Piotroski F-Score

2

Altman Z-Score

18.03

Return on Invested Capital (ROIC)

-4.49%

Current Ratio

3.83

Quick Ratio

3.03

Net Debt to EBITDA

16.02

Interest Coverage

-19.72

Gross Profit margin

29.64%

FCF PER SHARE

$-3.14

REVENUE PER SHARE

$6.67

Analyze AAOI on TradingView

Gainseekers Quantitative Analysis

Summary

The market appears to be mispricing AAOI Applied Optoelectronics, Inc. significantly. With a DCF value deeply negative, the stock’s recent pricing suggests a disconnect from intrinsic value. The Forward P/E of 14.25 indicates some optimism about future earnings, contrasting sharply with the current negative earnings yield. However, the Altman Z-score of 15.92 suggests a robust financial position, indicating low bankruptcy risk despite current profitability challenges. This juxtaposition of safety and speculative growth potential creates a complex investment narrative.

AI Exposure / Tech Reliance

Positioned within the semiconductor industry, AAOI is well-placed to capitalize on AI advancements and tech shifts. The sector's inherent demand for high-performance optical components aligns with the company's core competencies. This strategic alignment could drive future growth as AI and data center demands surge.

The Bull Case

For the value or GARP investor, AAOI presents an intriguing opportunity. Despite a low Piotroski F-Score of 2, the company's strong Altman Z-score and manageable Debt/Equity ratio of 0.23 highlight financial resilience. While ROIC is negative, the company's high sales growth potential and forward-looking earnings estimates suggest significant upside. Investors might see this as a chance to buy into a turnaround story with substantial growth prospects.

The Bear Case

However, the structural risks are glaring. The stock's Price/Book ratio of 10.23 and Price/Sales ratio of 23.57 indicate a valuation stretched to extremes. Negative cash flow metrics, such as a Price to FCF of -50.03, underscore operational inefficiencies. The stock's proximity to its 52-week high further suggests technical overextension, making it a risky bet for those wary of overvaluation.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$74.50

Institutional Ownership %

1-Year Beta

3.76

Insider Buying % (6 Mo)

Distance to 52-Week High

50.51%

Distance to 52-Week Low

90.30%

EARNINGS SURPRISE %

-42.86%

50-DAY SMA

$146.66

200-DAY SMA

$65.27

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.