NasdaqGM:AAOI

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Applied Optoelectronics

Executive Summary

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


Snowflake Analysis

Fair value with limited growth.


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: AAOI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.3%

AAOI

-4.9%

US Communications

-2.4%

US Market


1 Year Return

-3.6%

AAOI

-20.1%

US Communications

12.0%

US Market

Return vs Industry: AAOI exceeded the US Communications industry which returned -20.1% over the past year.

Return vs Market: AAOI underperformed the US Market which returned 12% over the past year.


Shareholder returns

AAOIIndustryMarket
7 Day4.3%-4.9%-2.4%
30 Day-7.1%-11.5%-6.5%
90 Day15.3%-15.8%8.4%
1 Year-3.6%-3.6%-18.0%-20.1%14.5%12.0%
3 Year-83.4%-83.4%10.6%3.1%34.8%25.8%
5 Year-40.9%-40.9%43.2%28.1%82.1%61.6%

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

Valuation

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

32.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAOI ($10.73) is trading below our estimate of fair value ($15.9)

Significantly Below Fair Value: AAOI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AAOI is unprofitable, so we can't compare its PE Ratio to the US Communications industry average.

PE vs Market: AAOI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AAOI is good value based on its PB Ratio (0.9x) compared to the US Communications industry average (1.7x).


Next Steps

Future Growth

How is Applied Optoelectronics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

110.3%

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 (23.1% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: AAOI's revenue (23.1% per year) is forecast to grow faster 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


Next Steps

Past Performance

How has Applied Optoelectronics performed over the past 5 years?

-45.9%

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 45.9% 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 (-28.9%).


Return on Equity

High ROE: AAOI has a negative Return on Equity (-30.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is Applied Optoelectronics's financial position?


Financial Position Analysis

Short Term Liabilities: AAOI's short term assets ($213.0M) exceed its short term liabilities ($119.8M).

Long Term Liabilities: AAOI's short term assets ($213.0M) exceed its long term liabilities ($100.9M).


Debt to Equity History and Analysis

Debt Level: AAOI's debt to equity ratio (56.4%) is considered high.

Reducing Debt: AAOI's debt to equity ratio has increased from 51.3% to 56.4% over the past 5 years.

Debt Coverage: AAOI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AAOI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


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.


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 AAOI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Thompson Lin (57 yo)

23.58yrs

Tenure

US$2,152,604

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 ($USD2.15M) is above average for companies of similar size in the US market ($USD1.40M).

Compensation vs Earnings: Thompson's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Chih-Hsiang Lin
Founder23.58yrsUS$2.15m2.33%
$ 5.7m
Stefan Murry
CFO & Chief Strategy Officer6.08yrsUS$738.26k0.090%
$ 219.6k
David Kuo
VP, General Counsel0.67yrUS$441.52k0.011%
$ 26.0k
Hung-Lun Chang
Senior VP of Optical Component Business Unit & GM of North America7.92yrsUS$691.71k0.12%
$ 295.0k
Shu-Hua Yeh
Senior VP of Network Equipment Module Business Unit & GM of Asia7.83yrsUS$709.08k0.31%
$ 761.2k
Lindsay Savarese
Investor Relationsno datano datano data
Jessica Hung
VP of Finance & Controller13.67yrsno datano data

7.9yrs

Average Tenure

54yo

Average Age

Experienced Management: AAOI's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chih-Hsiang Lin
Founder23.58yrsUS$2.15m2.33%
$ 5.7m
Richard Black
Independent Director19.08yrsUS$185.00k0.25%
$ 622.1k
Min-Chu Chen
Independent Director7.58yrsUS$177.00k0.23%
$ 556.3k
Alex Ignatiev
Independent Director7.58yrsUS$170.00k0.17%
$ 423.8k
Che-Wei Lin
Independent Director6.67yrsUS$167.00k0.25%
$ 618.7k
William Yeh
Lead Independent Director2.42yrsUS$180.00k0.34%
$ 834.2k
Elizabeth Loboa
Independent Director0.25yrno datano data

6.7yrs

Average Tenure

68yo

Average Age

Experienced Board: AAOI's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AAOI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Applied Optoelectronics, Inc.
  • Ticker: AAOI
  • Exchange: NasdaqGM
  • Founded: 1997
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$244.365m
  • Shares outstanding: 22.77m
  • 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 06:07
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.