BST:A59

Stock Analysis Report

Applied Optoelectronics

Executive Summary

Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide.


Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

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.


Market Performance


7 Day Return

-3.5%

A59

-9.1%

DE Communications

-0.2%

DE Market


1 Year Return

-14.5%

A59

3.6%

DE Communications

13.7%

DE Market

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.


Shareholder returns

A59IndustryMarket
7 Day-3.5%-9.1%-0.2%
30 Day-11.1%-7.8%0.3%
90 Day19.3%-9.4%3.7%
1 Year-14.5%-14.5%4.2%3.6%17.2%13.7%
3 Year-68.3%-68.3%-5.6%-5.9%15.4%5.3%
5 Year15.8%15.8%86.4%86.1%21.3%4.7%

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

Valuation

Is Applied Optoelectronics undervalued compared to its fair value and its price relative to the market?

>50%

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).


Next Steps

Future Growth

How is Applied Optoelectronics forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

46.2%

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%).


Next Steps

Past Performance

How has Applied Optoelectronics performed over the past 5 years?

-5.1%

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


Next Steps

Financial Health

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.


Balance Sheet

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.


Next Steps

Dividend

What is Applied Optoelectronics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

Thompson Lin (56yo)

23yrs

Tenure

US$4,705,496

Compensation

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.


Leadership Team

NamePositionTenureCompensationOwnership
Chih-Hsiang Lin
Founder23yrsUS$4.71m2.73% $6.1m
Stefan Murry
CFO & Chief Strategy Officer5.5yrsUS$1.21m0.13% $293.5k
David Kuo
VP, General Counsel & Corporate Secretary6.5yrsUS$710.90k0.077% $173.6k
Hung-Lun Chang
Senior VP of Optical Component Business Unit & GM of North America7.3yrsUS$1.21m0.16% $361.0k
Shu-Hua Yeh
Senior VP of Network Equipment Module Business Unit & GM of Asia7.3yrsUS$1.26m0.33% $733.6k
Jessica Hung
VP of Finance & Controller13.1yrsno datano data

7.3yrs

Average Tenure

53yo

Average Age

Experienced Management: A59's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chih-Hsiang Lin
Founder23yrsUS$4.71m2.73% $6.1m
Richard Black
Independent Director18.5yrsUS$175.34k0.22% $503.3k
Min-Chu Chen
Independent Director7yrsUS$167.34k0.19% $434.7k
Alex Ignatiev
Independent Director7yrsUS$161.72k0.13% $296.4k
Che-Wei Lin
Independent Director6.1yrsUS$158.72k0.25% $573.1k
Alan Moore
Independent Director6.9yrsUS$161.72k1.24% $2.8m
William Yeh
Lead Independent Director1.8yrsUS$169.67k0.27% $612.6k

6.9yrs

Average Tenure

67yo

Average Age

Experienced Board: A59's board of directors are considered experienced (6.9 years average tenure).


Ownership

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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Applied Optoelectronics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Applied Optoelectronics, Inc.
  • 13139 Jess Pirtle Boulevard
  • Sugar Land
  • Texas
  • 77478
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AAOINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 2013
A59BST (Boerse-Stuttgart)YesCommon StockDEEURSep 2013
0HGVLSE (London Stock Exchange)YesCommon StockGBUSDSep 2013

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:19
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.