Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide.
Fair value with imperfect balance sheet.
Share Price & News
How has Applied Optoelectronics's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: A59's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: A59 underperformed the German Communications industry which returned 3.6% over the past year.
Return vs Market: A59 underperformed the German Market which returned 13.7% over the past year.
Price Volatility Vs. Market
How volatile is Applied Optoelectronics's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Applied Optoelectronics undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: A59 (€10.87) is trading below our estimate of fair value (€55.65)
Significantly Below Fair Value: A59 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: A59 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.
PE vs Market: A59 is unprofitable, so we can't compare its PE Ratio to the German market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate A59's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: A59 is good value based on its PB Ratio (0.8x) compared to the DE Communications industry average (3.1x).
How is Applied Optoelectronics forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: A59 is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: A59 is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: A59 is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: A59's revenue (16.7% per year) is forecast to grow faster than the German market (5% per year).
High Growth Revenue: A59's revenue (16.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: A59's Return on Equity is forecast to be low in 3 years time (1.8%).
How has Applied Optoelectronics performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: A59 is currently unprofitable.
Growing Profit Margin: A59 is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: A59 is unprofitable, and losses have increased over the past 5 years at a rate of -5.1% per year.
Accelerating Growth: Unable to compare A59's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: A59 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).
Return on Equity
High ROE: A59 has a negative Return on Equity (-12.96%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
How is Applied Optoelectronics's financial position?
Financial Position Analysis
Short Term Liabilities: A59's short term assets ($190.6M) exceed its short term liabilities ($64.4M).
Long Term Liabilities: A59's short term assets ($190.6M) exceed its long term liabilities ($117.2M).
Debt to Equity History and Analysis
Debt Level: A59's debt to equity ratio (42.7%) is considered high.
Reducing Debt: A59's debt to equity ratio has increased from 22.4% to 42.7% over the past 5 years.
Inventory Level: A59 has a high level of physical assets or inventory.
Debt Coverage by Assets: A59's debt is covered by short term assets (assets are 1.5x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: A59 has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: A59 has been profitable on average in the past, therefore cash runway is not a concern.
What is Applied Optoelectronics's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate A59's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate A59's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if A59's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if A59's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of A59's dividend in 3 years as they are not forecast to pay a notable one for the German market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Thompson Lin (56yo)
Dr. Chih-Hsiang Lin, also known as Thompson, Ph.D., founded Applied Optoelectronics, Inc., in 1997 and has been its President, Chief Executive Officer. Dr. Lin has been the Chairman of the Board at Applied ...
CEO Compensation Analysis
Compensation vs Market: Thompson's total compensation ($USD4.71M) is above average for companies of similar size in the German market ($USD625.18K).
Compensation vs Earnings: Thompson's compensation has been consistent with company performance over the past year.
|CFO & Chief Strategy Officer||5.5yrs||US$1.21m||0.13% $293.5k|
|VP, General Counsel & Corporate Secretary||6.5yrs||US$710.90k||0.077% $173.6k|
|Senior VP of Optical Component Business Unit & GM of North America||7.3yrs||US$1.21m||0.16% $361.0k|
|Senior VP of Network Equipment Module Business Unit & GM of Asia||7.3yrs||US$1.26m||0.33% $733.6k|
|VP of Finance & Controller||13.1yrs||no data||no data|
Experienced Management: A59's management team is seasoned and experienced (7.3 years average tenure).
|Independent Director||18.5yrs||US$175.34k||0.22% $503.3k|
|Independent Director||7yrs||US$167.34k||0.19% $434.7k|
|Independent Director||7yrs||US$161.72k||0.13% $296.4k|
|Independent Director||6.1yrs||US$158.72k||0.25% $573.1k|
|Independent Director||6.9yrs||US$161.72k||1.24% $2.8m|
|Lead Independent Director||1.8yrs||US$169.67k||0.27% $612.6k|
Experienced Board: A59's board of directors are considered experienced (6.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Applied Optoelectronics, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Applied Optoelectronics, Inc.
- Ticker: A59
- Exchange: BST
- Founded: 1997
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$243.052m
- Listing Market Cap: US$225.212m
- Shares outstanding: 20.12m
- Website: https://www.ao-inc.com
Number of Employees
- Applied Optoelectronics, Inc.
- 13139 Jess Pirtle Boulevard
- Sugar Land
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AAOI||NasdaqGM (Nasdaq Global Market)||Yes||Common Stock||US||USD||Sep 2013|
|A59||BST (Boerse-Stuttgart)||Yes||Common Stock||DE||EUR||Sep 2013|
|0HGV||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Sep 2013|
Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide. It offers optical modules, lasers, 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 telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was founded in 1997 and is headquartered in Sugar Land, Texas.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 22:19|
|End of Day Share Price||2020/02/20 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.