Applied Optoelectronics, Inc.

Technology
Semiconductors
www.ao-inc.com

Earnings Score
Moat Score
Safety Score

Market Cap $569.95M
PE -3
Debt $156.87M
Cash $79.13M
EV $647.68M
FCF -$112.93M

Earnings

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Sales & Net Margins

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Earnings	-$186.73M
EBIT	-$70.91M
ROE	-82%
ROA	-13%
FCF	-$112.93M
Equity	$229.11M
Growth Stability	-3K%
PE	-3.05
PB	2.49
P/FCF	-5.05
P/S	2.29
Price/Cash	0.14
Debt/Equity	0.68
Debt/FCF	-1.39
Net Margins	-75%
Gross Margins	25%
Op. Margins	-28%
Earnings CAGR	0%
Sales Growth YoY	66%
Sales Growth QoQ	54%
Sales CAGR	-4%
FCF CAGR	-0%
Equity CAGR	-1%
Earnings Stability	0
Earnings Growth YoY	764%

Earnings Growth QoQ	574%
Sales CAGR 5Y	1%
Equity CAGR 5Y	-8%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
Equity CAGR 3Y	-0%
Market Cap	$569.95M
Revenue	$249.37M
Assets	$547.03M
Total Debt	$156.87M
Cash	$79.13M
Shares Outstanding	41.5M
EV	647.68M
Earnings Score	6%
Moat Score	2%
Safety Score	33%
Final Score	13%
Working Capital	131.2M
Current Ratio	1.77
Gross Profit	$61.80M
Shares Growth 3y	19%
Equity Growth QoQ	8%
Equity Growth YoY	7%

Assets & ROA

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Stockholders Equity & ROE

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Applied Optoelectronics Inc is a provider of fiber-optic networking products, primarily for the Internet data center, cable television, and fiber-to-the-home end markets. The company focuses on designing and manufacturing a range of optical communication products from components, to subassemblies, and modules to complete turn-key equipment. Demand for Applied Optoelectronics is driven by bandwidth demand in end markets. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance.

SEC Filings

Direct access to Applied Optoelectronics, Inc. (AAOI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Applied Optoelectronics, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Applied Optoelectronics, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 0%

Stability 0%

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Applied Optoelectronics, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Applied Optoelectronics, Inc..

Years

Calculation mode

= -$1.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$113M	-$113M	-$113M	-$113M	-$112M	-$112M	-$112M	-$112M	-$112M	-$112M	-$112M	-$1.1B
DCF		-$103M	-$93M	-$85M	-$77M	-$70M	-$63M	-$58M	-$52M	-$47M	-$43M	-$431M
Value	-$1.1B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	6%	12%	19%	-1%	-35%	-25%	-26%	-30%	-26%	-75%	-75%
ROA	-	7%	19%	-2%	-10%	-10%	-12%	-14%	-11%	-13%	-13%
ROE	-	14%	22%	-1%	-24%	-21%	-21%	-36%	-26%	-82%	-82%

Bad Net Margins (-74.88%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	6.62	2.89	-1.86	-3.61	-1.94	-6.54	-7.93	-5.85	-1.39	-1.39
Debt over Equity	0.58	0.22	0.15	0.33	0.4	0.42	0.5	0.74	0.46	0.68	0.68
Growth Stability	-	-	-	-6%	-192%	-3K%	-	-	-	-	-3K%

Good Debt/FCF ratio (-1.39)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.68)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-3K%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	37%	47%	-30%	-29%	23%	-10%	5%	-2%	15%	1%
Earnings YoY growth	-	189%	137%	-103%	3K%	-12%	-7%	23%	-16%	233%	-
Equity YoY growth	-	37%	47%	-1%	-17%	1%	-8%	-27%	16%	7%	-8%
FCF YoY growth	-	-111%	126%	-434%	-47%	96%	-67%	-12%	-1%	564%	-