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Company Analysis

Applied Optoelectronics, Inc. AAOI

A comprehensive view of key metrics, scores, and financial health for Applied Optoelectronics, Inc.

Overview of Applied Optoelectronics, Inc.

AAOI NGM
Technology Communication Equipment Framework: General Corporate Mid Cap
Applied Optoelectronics, Inc. (AAOI), is a Mid Cap company, in the Communication Equipment industry, last closed at $62.50, about 89.3% overvalued vs fair value, +114.8% 1Y return, ranked 333/780 in sector.
Metrics Rev Growth 82.8% ROE -7.9% Gross Margin 30.0%
USD 62.50
-9.49%
(Delayed)
• Vol 90d: 120.9%
52-Week Range
Market Cap
$5.84B
Enterprise Value
$5.56B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Fair
Health
Weak
Efficiency
Fair
Valuation
Weak
Growth
Fair
Profitability
Fair
Health
Weak
Efficiency
Fair
Valuation
Weak
Completeness: 88%
Confidence: 92%
Updated: Oct 31
Top Beats

Quick Facts

Website https://www.ao-inc.com
HQ Sugar Land, TX
Employees 4,691
Fiscal year Dec 31

Next Events

Earnings Nov 5 Call: Nov 5

Fair Value Snapshot

Bear Base Bull
$5
$7
$8
Current: $62.50 -89% vs base

Engine Room Money Flow™

Mid Cap

Corporate Free Cash Flow - Where revenue goes and how value is created

Flow Steps
Revenue
$455.7M
82.8%%
Gross Profit
$136.9M
121.5%%
Operating Income
-$54.6M
23%%
Net Income
-$38.2M
79.5%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Corporate Free Cash Flow

Quality & Reliability Indicators

Cash Conversion Ratio FY2025
925.9%

Operating Cash Flow / Net Income

FCF / Net Income - not meaningful while net income is negative (a near-100% ratio here only reflects cash burn tracking accounting losses, not earnings quality)

Locked Metric
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Where It Leaks

Cash Flow Health critical
Significant cash flow inefficiencies identified. Multiple high-impact leaks require attention.
1
Active Leaks
0/1
Improving
0
High Impact
1
Critical
Moat Analysis Corporate Default

Competitive Advantage Assessment

Evaluating Applied Optoelectronics, Inc.'s durable competitive advantages across 6 defense dimensions

Overall Moat Strength
37
/100
Developing
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Operating Leverage in Effect Operating leverage is evident (score 0.85), with margins expanding over time.
  • Strong Liquidity Buffer Liquidity position is strong (score 0.68), providing operational cushion.

Key risks

  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.32), suggesting weak customer stickiness.
  • Elevated Debt Risk Debt serviceability is weak (score 0.38), raising refinancing risk.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Developing
31
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

vs Industry Peers 91% Coverage
Trade-Off Triangle Visualization A ternary plot showing AAOI's balance between Growth (50.4%), Profitability (17.3%), and Safety (32.4%). Growth 50% Safety 32% Profitability 17%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

80th percentile vs peers
80
Key Signals
Rev Growth YoY 82.8% 95p Revenue CAGR 3Y 26.9% 89p EPS Growth YoY 85.9% 83p TSR -62.9% 6p
Strengths
  • Growth performance in top 20% of peers (percentile: 80)
  • Rev Growth YoY in top 20% of peers (82.8%, 95th percentile)
  • Revenue CAGR 3Y in top 20% of peers (26.9%, 89th percentile)
  • EPS Growth YoY in top 20% of peers (85.9%, 83th percentile)
  • Strong liquidity position vs peers
Risks

No significant risks identified for this axis.

Profitability

27th percentile vs peers
28
Key Signals
Strengths
Risks
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Safety

51th percentile vs peers
52
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Applied Optoelectronics, Inc..

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$6.69
- - -
-89.3% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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