COMPOSITE RISK SCORE
36
HIGH RISK
VAL:7/25 · FIN:2/25 · GRO:12/25 · TECH:15/25
📖 P/B RATIO
14.8x
Price to Book
🏛 MARKET CAP
$11.6B
Large Cap
📊 ROE
-7.9%
Return on Equity
Overview
Technical
Financials
Analysis
Verdict
🏢 Company Analysis · Applied Optoelectronics, Inc.
💼 BUSINESS MODEL
Applied Optoelectronics, Inc.. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China.. The company offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, and distribution equipment, as well as amplifiers.. It sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels.. Operates in Communication Equipment within the Technology sector. Workforce of 4,691 employees.
🏰 MOAT & COMPETITION
Large-cap ($12B) — established player with meaningful market presence.
🚀 CATALYSTS
Applied Optoelectronics (AAOI) Expands Houston-Area Manufacturing Footprint (Insider Monkey) How Applied Optoelectronics’ 388,000-Square-Foot Pearland Expansion (AAOI) Has Changed Its Investment Story (Simply Wall St.) Revenue growing at 34% — strong top-line momentum.
⚖️ ASYMMETRY CHECK
Analyst target range: $54 — $190 (mean $102, 5 analysts). Unfavorable asymmetry — limited upside +31% vs downside -63% (0.5x).P/E of 45.3x — premium valuation , growth must sustain to avoid de-rating risk.
🔭 FUTURE OUTLOOK
Analyst consensus: Buy (5 analysts).
P/E at 45x
P/B at 14.8x
Analyst target: $102.30 (-29.4%)
1Y return: +1029.7%
ROE: -7.9%
Profit margin: -8.4%
Revenue growth: 33.9%
Debt/Equity: 34%
Revenue growth: 33.9%
Earnings growth: 0.0%
Beta: 3.22
Sector: Technology
RSI, MACD, MA crossovers
200 DMA & 50 EMA position
Volume trend analysis
Price momentum signals
📈 Price Movement
1D 1W 1M
6M 1Y 3Y 5Y
🕯 Candlestick Chart
1D 1W 1M
6M 1Y 3Y 5Y
🎯 Price Prediction · Analyst Target Cone
📉 Valuation Trends (at current CMP)
P/E P/B MCap/Sales EPS
P/E data unavailable
72.2
57.5
42.8
28.1
13.4
2022
2023
2024
2025
2022: 62.8 2023: 54.0 2024: 50.6 2025: 15.8 15.8
61.2
51.3
41.4
31.5
21.6
2022
2023
2024
2025
2022: 52.0 2023: 53.3 2024: 46.5 2025: 25.4 25.4
Insufficient EPS data
💎 Valuation & Financial Metrics
P/E RATIO
45.3x
Trailing twelve months
P/B RATIO
14.8x
Price to Book value
PROFIT MARGIN
-8.4%
Net profit margin
OPM
-8.6%
Operating profit margin
ANALYST TARGET
$102.30
Range: $54.00 - $190.00
PEG RATIO
0.78
Price/Earnings to Growth
EV/EBITDA
-385.2x
Enterprise value ratio
CURRENT RATIO
2.63
Liquidity measure
DIVIDEND YIELD
N/A
Annual yield
GROSS MARGIN
30.0%
Gross profit margin
SECTOR BENCHMARKS — COMMUNICATION EQUIPMENT
P/E (fair) 35.0x (sector mid)
P/B (fair) 8.0x (sector mid)
ROE (good) 25% (sector target)
OPM (good) 25% (sector target)
D/E comfort <20 (sector)
📋 Quarterly Performance Trend
Quarter Revenue QoQ % Net Profit QoQ % Op. Cash Flow EBITDA Margin
Q3 '24
N/A —
N/A —
N/A
N/A
Q4 '24
$100.3M —
$-119.7M —
$-24.6M
-112.3%
Q1 '25
$99.9M -0.4%
$-9.2M +92.3%
$-50.9M
-2.5%
Q2 '25
$103.0M +3.1%
$-9.1M +0.8%
$-65.5M
-1.8%
Q3 '25
$118.6M +15.2%
$-17.9M -97.1%
$-28.5M
-8.1%
Q4 '25
$134.3M +13.2%
$-2.0M +88.7%
$-29.6M
-1.1%
📊 Year-on-Year Trend
FY Revenue YoY % Net Profit YoY % Op. Cash Flow YoY %
2021
N/A —
N/A —
N/A —
2022
$222.8M —
$-66.4M —
$-14.0M —
2023
$217.6M -2.3%
$-56.0M +15.6%
$-7.9M +43.5%
2024
$249.4M +14.6%
$-186.7M -233.2%
$-69.5M -776.9%
2025
$455.7M +82.8%
$-38.2M +79.5%
$-174.4M -150.9%
📈 Revenue vs Earnings
Quarterly
Annual
💰 How Applied Optoelectronics, Inc. Makes Its Money
Quarterly
Annual
Revenue
$134M
Cost of Revenue
$92M
Gross Profit
$42M
R&D
$26M
SG&A
$28M
Operating Inc.
-$11M
Interest
$0.8M
Other
$0.9M
Net Income
-$2M
(-1.5% margin)
Dec 2025 · All values in $ Millions
Revenue
$119M
Cost of Revenue
$85M
Gross Profit
$33M
R&D
$21M
SG&A
$30M
Operating Inc.
-$15M
Interest
$0.9M
Other
$3M
Net Income
-$18M
(-15.1% margin)
Sep 2025 · All values in $ Millions
Revenue
$103M
Cost of Revenue
$72M
Gross Profit
$31M
R&D
$21M
SG&A
$27M
Operating Inc.
-$15M
Interest
$0.8M
Other
$6M
Net Income
-$9M
(-8.8% margin)
Jun 2025 · All values in $ Millions
Revenue
$100M
Cost of Revenue
$69M
Gross Profit
$31M
R&D
$18M
SG&A
$22M
Operating Inc.
-$9M
Interest
$0.9M
Net Income
-$9M
(-9.2% margin)
Mar 2025 · All values in $ Millions
Revenue
$456M
Cost of Revenue
$319M
Gross Profit
$137M
R&D
$86M
SG&A
$106M
Operating Inc.
-$50M
Interest
$3M
Other
$5M
Net Income
-$38M
(-8.4% margin)
Dec 2025 · All values in $ Millions
Revenue
$249M
Cost of Revenue
$188M
Gross Profit
$62M
R&D
$55M
SG&A
$78M
Operating Inc.
-$71M
Interest
$7M
Other
$110M
Net Income
-$187M
(-74.9% margin)
Dec 2024 · All values in $ Millions
Revenue
$218M
Cost of Revenue
$159M
Gross Profit
$59M
R&D
$36M
SG&A
$64M
Operating Inc.
-$40M
Interest
$9M
Other
$7M
Net Income
-$56M
(-25.8% margin)
Dec 2023 · All values in $ Millions
Revenue
$223M
Cost of Revenue
$189M
Gross Profit
$34M
R&D
$36M
SG&A
$56M
Operating Inc.
-$59M
Interest
$6M
Other
$1M
Net Income
-$66M
(-29.8% margin)
Dec 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
Mar 2025
🏦 Snapshot of Applied Optoelectronics, Inc.'s Balance Sheet
Quarterly
Annual
Total Assets
$1.2B
Cash & Equiv.: $206M (17.6%)
Receivables: $244M (20.9%)
Inventory: $183M (15.7%)
Other Current: $42M (3.6%)
PP&E: $426M (36.4%)
Other Non-Curr.: $59M (5.0%)
Liab. + Equity
$1.2B
Current Liab.: $257M (22.0%)
Long-Term Debt: $130M (11.1%)
Other Liab.: $47M (4.1%)
Equity: $734M (62.8%)
As of Dec 2025 · All values in $ Millions
Total Assets
$979M
Cash & Equiv.: $137M (14.0%)
Receivables: $224M (22.9%)
Inventory: $170M (17.4%)
Other Current: $44M (4.5%)
PP&E: $352M (36.0%)
Other Non-Curr.: $42M (4.3%)
Liab. + Equity
$979M
Current Liab.: $249M (25.5%)
Long-Term Debt: $130M (13.3%)
Other Liab.: $40M (4.1%)
Equity: $559M (57.1%)
As of Sep 2025 · All values in $ Millions
Total Assets
$797M
Cash & Equiv.: $65M (8.1%)
Receivables: $211M (26.5%)
Inventory: $139M (17.4%)
Other Current: $43M (5.4%)
PP&E: $291M (36.6%)
Other Intangibles: $8M (1.1%)
Other Non-Curr.: $39M (4.8%)
Liab. + Equity
$797M
Current Liab.: $217M (27.2%)
Long-Term Debt: $134M (16.8%)
Other Liab.: $21M (2.6%)
Equity: $425M (53.3%)
As of Jun 2025 · All values in $ Millions
Total Assets
$645M
Cash & Equiv.: $51M (7.9%)
Receivables: $171M (26.5%)
Inventory: $102M (15.9%)
Other Current: $34M (5.3%)
PP&E: $251M (38.9%)
Other Intangibles: $8M (1.3%)
Other Non-Curr.: $27M (4.1%)
Liab. + Equity
$645M
Current Liab.: $191M (29.6%)
Long-Term Debt: $136M (21.1%)
Equity: $309M (47.9%)
As of Mar 2025 · All values in $ Millions
Total Assets
$1.2B
Cash & Equiv.: $206M (17.6%)
Receivables: $244M (20.9%)
Inventory: $183M (15.7%)
Other Current: $42M (3.6%)
PP&E: $426M (36.4%)
Other Non-Curr.: $59M (5.0%)
Liab. + Equity
$1.2B
Current Liab.: $257M (22.0%)
Long-Term Debt: $130M (11.1%)
Other Liab.: $47M (4.1%)
Equity: $734M (62.8%)
As of Dec 2025 · All values in $ Millions
Total Assets
$547M
Cash & Equiv.: $67M (12.3%)
Receivables: $117M (21.4%)
Inventory: $88M (16.1%)
Other Current: $29M (5.3%)
PP&E: $229M (41.8%)
Other Intangibles: $9M (1.6%)
Liab. + Equity
$547M
Current Liab.: $170M (31.1%)
Long-Term Debt: $139M (25.4%)
Equity: $229M (41.9%)
As of Dec 2024 · All values in $ Millions
Total Assets
$389M
Cash & Equiv.: $45M (11.7%)
Receivables: $48M (12.4%)
Inventory: $64M (16.4%)
Other Current: $15M (3.9%)
PP&E: $205M (52.8%)
Other Intangibles: $9M (2.2%)
Liab. + Equity
$389M
Current Liab.: $93M (24.0%)
Long-Term Debt: $76M (19.6%)
Equity: $215M (55.2%)
As of Dec 2023 · All values in $ Millions
Total Assets
$408M
Cash & Equiv.: $25M (6.0%)
Receivables: $61M (15.0%)
Inventory: $80M (19.5%)
Other Current: $18M (4.3%)
PP&E: $216M (52.9%)
Other Intangibles: $9M (2.2%)
Liab. + Equity
$408M
Current Liab.: $139M (33.9%)
Long-Term Debt: $80M (19.5%)
Equity: $185M (45.2%)
As of Dec 2022 · All values in $ Millions
Dec 2025
Sep 2025
Jun 2025
Mar 2025
🎯 EPS: Estimate vs Actual
Estimates
Quarterly
Annual
📅 Quarterly Results
Item Dec '25 Sep '25 Jun '25 Mar '25 Dec '24 Sep '24 Total Revenue $134.3M $118.6M $103.0M $99.9M $100.3M — Cost of Revenue $92.3M $85.4M $71.8M $69.3M $71.5M — Gross Profit $41.9M $33.3M $31.2M $30.5M $28.7M — Operating Expense $53.3M $48.2M $45.8M $39.3M $35.2M — Operating Income $-11.4M $-15.0M $-14.7M $-8.8M $-6.4M — Interest Expense $844.0K $902.0K $818.0K $934.0K $1.8M — Pretax Income $-10.5M $-17.9M $-9.1M $-9.2M $-119.7M — Tax Provision $-8.5M $0 $0 $0 $2.0K — Net Income $-2.0M $-17.9M $-9.1M $-9.2M $-119.7M — EBITDA $-1.4M $-9.7M $-1.9M $-2.5M $-112.6M — EPS (Basic) $-0.03 $-0.28 $-0.16 $-0.18 $-2.60 — EPS (Diluted) $-0.03 $-0.28 $-0.16 $-0.18 $-2.60 — Shares Outstanding 70.3M 63.3M 56.8M 50.0M 46.1M —
📊 Profit & Loss Statement
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Total Revenue $455.7M $249.4M $217.6M $222.8M — Cost of Revenue $318.8M $187.6M $158.7M $189.2M — Gross Profit $136.9M $61.8M $58.9M $33.6M — Operating Expense $186.6M $132.3M $99.3M $92.5M — Operating Income $-49.7M $-70.5M $-40.4M $-58.8M — Interest Expense $3.5M $6.8M $9.4M $6.3M — Pretax Income $-46.7M $-186.7M $-56.0M $-66.4M — Tax Provision $-8.5M $2.0K $9.0K $1.0K — Net Income $-38.2M $-186.7M $-56.0M $-66.4M — EBITDA $-15.5M $-159.3M $-26.2M $-36.9M — EPS (Basic) $-0.64 $-4.50 $-1.75 $-2.38 — EPS (Diluted) $-0.64 $-4.50 $-1.75 $-2.38 — Shares Outstanding 60.2M 41.5M 31.9M 27.8M —
🏦 Balance Sheet
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Total Assets $1.17B $547.0M $389.2M $408.3M — Current Assets $675.7M $301.3M $172.6M $183.2M — Cash & Equivalents $206.1M $67.4M $45.4M $24.7M — Accounts Receivable $244.4M $116.8M $48.1M $61.2M — Inventory $183.1M $88.1M $63.9M $79.7M — Non-Current Assets $492.7M $245.8M $216.6M $225.1M — Property Plant & Equip $425.7M $228.9M $205.3M $215.8M — Intangible Assets $8.4M $8.5M $8.7M $8.9M — Total Liabilities $434.5M $317.9M $174.3M $223.6M — Current Liabilities $257.3M $170.1M $93.4M $138.6M — Accounts Payable $143.9M $105.0M $32.9M $47.8M — Short-Term Debt $67.3M $41.6M $39.0M $69.4M — Long-Term Debt $129.8M $138.8M $76.2M $79.5M — Total Equity $733.9M $229.1M $214.9M $184.7M — Retained Earnings $-490.1M $-451.9M $-265.1M $-209.1M — Book Value/Share 725.5M 220.6M 206.2M 175.7M —
💰 Cash Flow Statement
Item Dec '25 Dec '24 Dec '23 Dec '22 Dec '21 Operating Cash Flow $-174.4M $-69.5M $-7.9M $-14.0M — Depreciation & Amort. $27.7M $20.6M $20.4M $23.2M — Change in Working Cap $-175.9M $-35.9M $6.1M $11.9M — Capital Expenditure $-179.5M $-43.9M $-9.7M $-3.7M — Free Cash Flow $-354.0M $-113.4M $-17.6M $-17.7M — Investing Cash Flow $-210.6M $-50.7M $-14.8M $-3.8M — Financing Cash Flow $527.9M $142.2M $40.6M $10.8M — Debt Issued $61.2M $48.7M $141.3M $143.3M — Debt Repaid $-55.1M $-49.6M $-172.1M $-138.4M — Net Change in Cash $142.9M $22.0M $17.9M $-7.1M —
📈 Key Financial Ratios
Ratio FY2025 FY2024 FY2023 FY2022 FY2021 Gross Margin % 30.0% 24.8% 27.1% 15.1% — Operating Margin % -10.9% -28.3% -18.6% -26.4% — Net Margin % -8.4% -74.9% -25.8% -29.8% — EBITDA Margin % -3.4% -63.9% -12.0% -16.5% — ROE % -5.2% -81.5% -26.1% -36.0% — ROA % -3.3% -34.1% -14.4% -16.3% — Debt/Equity % 33.8% 83.3% 56.3% 84.2% — Current Ratio 2.63 1.77 1.85 1.32 — FCF Margin % -77.7% -45.5% -8.1% -8.0% — Asset Turnover 0.39 0.46 0.56 0.55 —
🚀 Compounded Growth Rates
Revenue
1-Year +82.8% 3-Year CAGR +44.7%
🏭 Industry Peers — Communication Equipment
Ticker Company Price P/E P/B MCap ROE Margin Rev Growth AAPL Apple Inc. $269.01 34.1 44.9 $3,949.6B 152.0% 27.0% 15.7% MSFT Microsoft Corporation $423.89 26.5 8.1 $3,150.4B 34.4% 39.0% 16.7% GOOGL Alphabet Inc. $350.36 32.4 10.2 $4,238.4B 35.7% 32.8% 18.0% META Meta Platforms, Inc. $671.66 28.6 7.8 $1,705.0B 30.2% 30.1% 23.8% NVDA NVIDIA Corporation $210.45 42.9 32.5 $5,115.0B 101.5% 55.6% 73.2% ORCL Oracle Corporation $162.74 29.2 13.9 $468.0B 57.6% 25.3% 21.7% CRM Salesforce, Inc. $180.20 23.1 2.8 $147.4B 12.4% 18.0% 12.1% ADBE Adobe Inc. $241.49 14.1 8.6 $97.6B 58.8% 29.5% 12.0%
Peers selected from Technology sector · Data from Yahoo Finance
🏛 Shareholding Pattern
TOP HOLDERS
Holder Type Shares % Held Blackrock Inc. Inst 5,306,432 6.63% Vanguard Group Inc Inst 4,982,660 6.22% Invesco Ltd. Inst 3,512,309 4.39% Price (T.Rowe) Associates Inc Inst 2,229,757 2.79% Oberweis Asset Management Inc. Inst 2,039,641 2.55% AIM Sector Funds (Invesco Sector Fu MF 3,105,316 3.88% VANGUARD INDEX FUNDS-Vanguard Total MF 2,051,335 2.56% iShares Trust-iShares Russell 2000 MF 1,468,181 1.83%
🟢 CATALYSTS
🏆 Revenue Growth 34%: Above sector norm of 30% — strong top-line momentum.
💹 Sector Opportunity: Technology / Communication Equipment — positioned in growth sector.
🔴 RISKS
📜 High Beta (3.22): More volatile than market — higher swing risk.
💰 Below Analyst Target: CMP above mean target — limited upside consensus.
🔓 Loss-Making: Negative profit margin — path to profitability unclear.
🕸 Factor Analysis · Radar
Momentum 7/10: 1M +70.0%, 6M +308.2%, RSI 56, MACD bearish, Above 200DMA Sentiment 4/10: Analyst upside -29.4%, Rec: buy Value 6/10: P/B 14.8, PEG 0.78, EV/EBITDA -385.2 Quality 2/10: ROE -7.9%, Margin -8.4%, D/E 34, CR 2.63 Low Volatility 0/10: Beta 3.22, Ann. vol 134% Momentum
7
Sentiment
4
Value
6
Quality
2
Low Vol
0
Momentum 7/10 1M +70.0%, 6M +308.2%, RSI 56, MACD bearish, Above 200DMA
Sentiment 4/10 Analyst upside -29.4%, Rec: buy
Value 6/10 P/B 14.8, PEG 0.78, EV/EBITDA -385.2
Quality 2/10 ROE -7.9%, Margin -8.4%, D/E 34, CR 2.63
Low Volatility 0/10 Beta 3.22, Ann. vol 134%
🎯 Decision Matrix — Game Theory
Action If Stock Rises If Stock Falls
BUY Benefit from potential re-rating Fundamentals provide base support HOLD Retain existing position; wait for better entry Miss further upside if momentum continues; 1M return of +70.0% shows momentum SELL Lock in +1029.7% 1Y return Avoid further drawdown
REASONS TO BUY
Revenue growing at 33.9% YoY (sector norm: 12%)
REASONS TO SELL / AVOID
1Y return of +1029.7% — profit booking opportunity
Trading above analyst target — consensus sees -29.4% downside
Applied Optoelectronics, Inc. trades at $144.82 with a composite risk score of 36/100.
The stock scores 7/25 on valuation, 2/25 on financial health, 12/25 on growth, and 15/25 on technicals.
The company is currently loss-making with negative return on equity.
Bottom Line: Elevated risk for Technology — consider exiting. The current recommendation is SELL .
STRONG GROWTH
VOLATILE
LOSS-MAKING