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AAOI

Applied Optoelectronics NasdaqGM:AAOI Stock Report

Last Price

US$1.56

Market Cap

US$43.1m

7D

-11.9%

1Y

-81.4%

Updated

04 Jul, 2022

Data

Company Financials +
AAOI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

AAOI Stock Overview

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

Applied Optoelectronics Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Applied Optoelectronics
Historical stock prices
Current Share PriceUS$1.56
52 Week HighUS$8.86
52 Week LowUS$1.51
Beta1.74
1 Month Change-30.67%
3 Month Change-52.73%
1 Year Change-81.41%
3 Year Change-83.73%
5 Year Change-97.73%
Change since IPO-84.34%

Recent News & Updates

Apr 28
Is Applied Optoelectronics (NASDAQ:AAOI) Weighed On By Its Debt Load?

Is Applied Optoelectronics (NASDAQ:AAOI) Weighed On By Its Debt Load?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

AAOIUS CommunicationsUS Market
7D-11.9%-3.2%-2.2%
1Y-81.4%-18.5%-19.1%

Return vs Industry: AAOI underperformed the US Communications industry which returned -18.5% over the past year.

Return vs Market: AAOI underperformed the US Market which returned -21.2% over the past year.

Price Volatility

Is AAOI's price volatile compared to industry and market?
AAOI volatility
AAOI Average Weekly Movement9.9%
Communications Industry Average Movement8.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: AAOI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: AAOI's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19972,534Thompson Linhttps://www.ao-inc.com

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 Fundamentals Summary

How do Applied Optoelectronics's earnings and revenue compare to its market cap?
AAOI fundamental statistics
Market CapUS$43.11m
Earnings (TTM)-US$54.60m
Revenue (TTM)US$214.11m

0.2x

P/S Ratio

-0.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AAOI income statement (TTM)
RevenueUS$214.11m
Cost of RevenueUS$178.09m
Gross ProfitUS$36.02m
Other ExpensesUS$90.62m
Earnings-US$54.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.98
Gross Margin16.82%
Net Profit Margin-25.50%
Debt/Equity Ratio61.0%

How did AAOI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is AAOI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AAOI?

Other financial metrics that can be useful for relative valuation.

AAOI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA-5.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does AAOI's PS Ratio compare to its peers?

AAOI PS Ratio vs Peers
The above table shows the PS ratio for AAOI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.3x
BKTI BK Technologies
1xn/aUS$41.3m
TESS TESSCO Technologies
0.1x7.0%US$52.4m
ASNS Actelis Networks
3.2xn/aUS$28.8m
PCTI PCTEL
0.8x9.8%US$74.5m
AAOI Applied Optoelectronics
0.2x9.4%US$43.1m

Price-To-Sales vs Peers: AAOI is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (1.3x).


Price to Earnings Ratio vs Industry

How does AAOI's PE Ratio compare vs other companies in the US Communications Industry?

Price-To-Sales vs Industry: AAOI is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Communications industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is AAOI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AAOI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: AAOI is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of AAOI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate AAOI's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate AAOI's fair value for valuation analysis.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AAOI's PEG Ratio to determine if it is good value.


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Future Growth

How is Applied Optoelectronics forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


50.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAOI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AAOI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AAOI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AAOI's revenue (9.4% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: AAOI's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AAOI's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Applied Optoelectronics performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-60.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AAOI is currently unprofitable.

Growing Profit Margin: AAOI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AAOI is unprofitable, and losses have increased over the past 5 years at a rate of 60.3% per year.

Accelerating Growth: Unable to compare AAOI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AAOI is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (35.7%).


Return on Equity

High ROE: AAOI has a negative Return on Equity (-22.79%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Applied Optoelectronics's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: AAOI's short term assets ($193.2M) exceed its short term liabilities ($116.5M).

Long Term Liabilities: AAOI's short term assets ($193.2M) exceed its long term liabilities ($90.6M).


Debt to Equity History and Analysis

Debt Level: AAOI's net debt to equity ratio (47.6%) is considered high.

Reducing Debt: AAOI's debt to equity ratio has increased from 10.3% to 61% over the past 5 years.


Balance Sheet


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: AAOI has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AAOI has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of 14.2% each year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAOI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAOI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAOI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAOI's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AAOI has not reported any payouts.


Discover strong dividend paying companies

Management

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

9.7yrs

Average management tenure


CEO

Thompson Lin (59 yo)

25.42yrs

Tenure

US$3,627,896

Compensation

Dr. Chih-Hsiang Lin, also known as Thompson, Ph D., founded Applied Optoelectronics, Inc., in February 1997 and has been its President, Chief Executive Officer. Dr. Lin has been the Chairman of the Board a...


CEO Compensation Analysis

Compensation vs Market: Thompson's total compensation ($USD3.63M) is above average for companies of similar size in the US market ($USD799.15K).

Compensation vs Earnings: Thompson's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AAOI's management team is seasoned and experienced (9.7 years average tenure).


Board Members

Experienced Board: AAOI's board of directors are considered experienced (9.4 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 been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Applied Optoelectronics, Inc.
  • Ticker: AAOI
  • Exchange: NasdaqGM
  • Founded: 1997
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: US$43.109m
  • Shares outstanding: 27.63m
  • Website: https://www.ao-inc.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/04 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.