AAOI
BEARISH
$96.81
Live
Applied Optoelectronics, Inc. · NASDAQ
Target $90.3
(-6.7%)
$9.71
52W Range
$128.96
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Mar 14, 2026
Market cap
$7.28B
P/E
N/A
ROE
-7.9%
Profit margin
-8.4%
Debt/Equity
0.34
Dividend yield
N/A
AI Analysis
AI-powered fundamental assessment
Confidence
85%
AAOI's deterministic health scores are severely compromised: the Piotroski F-Score of 0/9 signals extreme financial distress, with no positive indicators in profitability, leverage, or cash flow. The Altman Z-Score is unavailable, but the company's negative ROE (-7.94%), negative profit margins (-8.39%), and persistent losses despite 33.9% revenue growth indicate deep operational inefficiency. While the stock has delivered extraordinary price appreciation (510% in 1Y), this is not supported by fundamentals, and the valuation (P/E 30.28, Price/Sales 15.97) reflects a premium driven by speculative momentum rather than intrinsic value. Insider selling of $23.77M in the last 6 months further undermines confidence, signaling potential misalignment with public investors.
Key Strengths
Strong revenue growth of 33.9% YoY, indicating market demand and expansion in core business
High gross margin of 30.04% suggests pricing power and efficient production processes
Solid liquidity with current ratio of 2.63 and quick ratio of 1.75, indicating short-term financial resilience
Low debt-to-equity ratio of 0.34, implying conservative capital structure and limited leverage risk
Recent Q/Q EPS growth of +88.9% and YoY EPS growth of +50.0% suggest improving earnings momentum
Key Risks
Piotroski F-Score of 0/9 indicates severe financial distress, with no positive signals across profitability, leverage, or cash flow
Negative ROE (-7.94%), ROA (-3.98%), and operating margin (-8.57%) reflect persistent unprofitability despite revenue growth
Insider selling of $23.77M in 6 months with no buys signals potential insider pessimism and lack of confidence
Valuation is extremely stretched (P/E 30.28, Price/Sales 15.97), trading at a premium inconsistent with negative earnings and losses
Analyst target price of $90.30 is below current price ($96.81), suggesting downward price pressure despite 'buy' recommendation
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
27
Weak
20
65
40
10
0
AI Verdict
weak
Key drivers: Extremely low Piotroski F-Score (0/9), Negative profitability and ROE, High valuation relative to earnings, Bearish insider activity, Analyst target below current price
Confidence
85%
Value
20/100
Stock trades at a premium due to high growth expectations, but lacks fundamental support from earnings or cash flow.
Positives
- High gross margin (30.04%)
- Low debt-to-equity (0.34)
Watchpoints
- No Graham Number or intrinsic value available
- P/E ratio not available, forward P/E of 30.28 is high for a loss-making company
- Price/Sales of 15.97 is extremely elevated
- No dividend or payout history
Future
65/100
Growth is strong but not yet translating into earnings or cash flow, raising sustainability concerns.
Positives
- 33.9% YoY revenue growth
- Recent Q/Q EPS growth of +88.9%
- YoY EPS growth of +50.0%
Watchpoints
- Forward P/E of 30.28 is high for a company with negative earnings
- No clear path to sustained profitability
- Analyst target price below current price
Past
40/100
Historical performance shows revenue momentum but chronic inability to convert growth into profitability.
Positives
- Consistent revenue growth over 25 quarters
- Some quarters beat estimates (e.g., +91.1% surprise in 2026-02-26)
Watchpoints
- Average earnings surprise of -9.14% over last 4 quarters
- Frequent negative earnings (17 out of 25 quarters)
- Persistent losses despite growth
Health
10/100
Despite strong liquidity, the company's core profitability and financial health are critically weak.
Positives
- Current ratio of 2.63 and quick ratio of 1.75 indicate strong liquidity
- Debt-to-equity of 0.34 is low and conservative
Watchpoints
- Piotroski F-Score of 0/9 indicates severe financial distress
- Negative ROE, ROA, and operating margin
- No Altman Z-Score available, but negative profitability and leverage patterns suggest distress risk
Dividend
0/100
Company is not a dividend payer, and with negative earnings, no dividend is expected.
Positives
No standout positives identified.
Watchpoints
- No dividend yield or payout ratio
- Dividend strength score of 0/100
- No history of dividend payments
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$96.81
Analyst Target
$90.3
Upside/Downside
-6.7%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AAOI and closest competitors.
Updated 2026-03-13
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AAOI
Applied Optoelectronics, Inc.
Primary
|
+970.9% | +3539.5% | +510.0% | +257.6% | +100.0% | +1.3% |
|
PEGA
Pegasystems Inc.
Peer
|
-32.0% | +90.7% | +27.6% | -20.6% | +2.0% | +8.6% |
|
CHYM
Chime Financial, Inc.
Peer
|
-48.5% | -48.5% | -48.5% | -8.0% | -15.5% | +2.1% |
|
CAMT
Camtek Ltd.
Peer
|
+386.7% | +519.8% | +188.6% | +42.4% | +2.6% | +5.0% |
|
MANH
Manhattan Associates, Inc.
Peer
|
+3.7% | -19.4% | -22.4% | -37.2% | -10.4% | -7.6% |
AAO
Applied Optoelectronics, Inc.
Primary
5Y
+970.9%
3Y
+3539.5%
1Y
+510.0%
6M
+257.6%
1M
+100.0%
1W
+1.3%
PEG
Pegasystems Inc.
Peer
5Y
-32.0%
3Y
+90.7%
1Y
+27.6%
6M
-20.6%
1M
+2.0%
1W
+8.6%
CHY
Chime Financial, Inc.
Peer
5Y
-48.5%
3Y
-48.5%
1Y
-48.5%
6M
-8.0%
1M
-15.5%
1W
+2.1%
CAM
Camtek Ltd.
Peer
5Y
+386.7%
3Y
+519.8%
1Y
+188.6%
6M
+42.4%
1M
+2.6%
1W
+5.0%
MAN
Manhattan Associates, Inc.
Peer
5Y
+3.7%
3Y
-19.4%
1Y
-22.4%
6M
-37.2%
1M
-10.4%
1W
-7.6%
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
N/A
Forward P/E
30.28
PEG Ratio
N/A
P/B Ratio
9.89
P/S Ratio
15.97
EV/Revenue
16.07
EV/EBITDA
-272.13
Market Cap
$7.28B
Profitability
Profit margins and return metrics
Profit Margin
-8.39%
Operating Margin
-8.57%
Gross Margin
30.04%
ROE
-7.94%
ROA
-3.98%
Growth
Revenue and earnings growth rates
Revenue Growth
+33.9%
Earnings Growth
N/A
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
N/A
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.34
Low debt
Current Ratio
2.63
Strong
Quick Ratio
1.75
Excellent
Cash/Share
$2.74
Quarterly Earnings History
EPS performance vs analyst estimates
2026-05-07
$N/A
2026-02-26
$-0.01
+91.1% surprise
2025-11-06
$-0.09
-2.3% surprise
2025-08-07
$-0.16
-116.2% surprise
Technology Sector Comparison
Comparing AAOI against 383 companies in the Technology sector
(32 bullish, 137 neutral, 214 bearish)
Return on Equity (ROE)
-7.94%
This Stock
vs
-35.13%
Sector Avg
-77.4%
(Below Avg)
Profit Margin
-8.39%
This Stock
vs
-11.73%
Sector Avg
-28.5%
(Weaker)
Debt to Equity
0.34
This Stock
vs
0.67
Sector Avg
-49.8%
(Less Debt)
Revenue Growth
33.9%
This Stock
vs
6431.4%
Sector Avg
-99.5%
(Slower)
Current Ratio
2.63
This Stock
vs
3.83
Sector Avg
-31.4%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AAOI
Applied Optoelectronics, Inc.
|
BEARISH | $7.28B | - | -7.9% | -8.4% | $96.81 | |
|
PEGA
Pegasystems Inc.
|
NEUTRAL | $7.35B | 20.32 | 57.3% | 22.5% | $43.28 | Compare |
|
CHYM
Chime Financial, Inc.
|
NEUTRAL | $7.35B | - | -85.5% | -46.2% | $19.13 | Compare |
|
CAMT
Camtek Ltd.
|
NEUTRAL | $7.41B | 154.58 | 8.7% | 10.2% | $159.22 | Compare |
|
MANH
Manhattan Associates, Inc.
|
NEUTRAL | $7.55B | 35.03 | 71.7% | 20.3% | $126.11 | Compare |
AAOI
Applied...
BEARISH
Mkt Cap
$7.3B
P/E
-
ROE
-7.9%
Price
$96.81
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-03-10 | MURRY STEFAN J | Chief Financial Officer | Sale | 4,000 | $451,044 |
| 2026-03-09 | CHEN MIN-CHU MIKE | Director | Sale | 11,335 | $1,203,016 |
| 2026-03-09 | YEH SHU-HUA JOSHUA | Officer | Sale | 50,000 | $4,854,880 |
| 2026-03-09 | YEH WILLIAM H | Director | Sale | 15,000 | $1,586,338 |
| 2026-03-05 | BLACK RICHARD B | Director | Sale | 3,231 | $306,945 |
| 2026-03-04 | DELANEY CYNTHIA | Director | Sale | 21,000 | $2,058,344 |
| 2026-03-03 | LOBOA ELIZABETH G | Director | Sale | 102,347 | $9,800,605 |
| 2026-02-20 | MURRY STEFAN J | Chief Financial Officer | Sale | 5,980 | $299,922 |
| 2026-02-11 | KUO DAVID C. | Officer | Sale | 20,000 | $1,002,905 |
| 2026-02-11 | MURRY STEFAN J | Chief Financial Officer | Sale | 18,020 | $898,689 |
| 2026-02-09 | KUO DAVID C. | Officer | Stock Award | 17,027 | - |
| 2026-02-09 | YEH SHU-HUA JOSHUA | Officer | Stock Award | 25,799 | - |
| 2026-02-09 | LIN CHIH-HSIANG THOMPSON | Chief Executive Officer | Stock Award | 82,559 | - |
| 2026-02-09 | MURRY STEFAN J | Chief Financial Officer | Stock Award | 32,249 | - |
| 2026-02-09 | CHANG HUNG-LUN FRED | Officer | Stock Award | 25,799 | - |
MURRY STEFAN J
Chief Financial Officer
2026-03-10
4,000 shares
·
$451,044
CHEN MIN-CHU MIKE
Director
2026-03-09
11,335 shares
·
$1,203,016
YEH SHU-HUA JOSHUA
Officer
2026-03-09
50,000 shares
·
$4,854,880
YEH WILLIAM H
Director
2026-03-09
15,000 shares
·
$1,586,338
BLACK RICHARD B
Director
2026-03-05
3,231 shares
·
$306,945
DELANEY CYNTHIA
Director
2026-03-04
21,000 shares
·
$2,058,344
LOBOA ELIZABETH G
Director
2026-03-03
102,347 shares
·
$9,800,605
MURRY STEFAN J
Chief Financial Officer
2026-02-20
5,980 shares
·
$299,922
KUO DAVID C.
Officer
2026-02-11
20,000 shares
·
$1,002,905
MURRY STEFAN J
Chief Financial Officer
2026-02-11
18,020 shares
·
$898,689
KUO DAVID C.
Officer
2026-02-09
17,027 shares
YEH SHU-HUA JOSHUA
Officer
2026-02-09
25,799 shares
LIN CHIH-HSIANG THOMPSON
Chief Executive Officer
2026-02-09
82,559 shares
MURRY STEFAN J
Chief Financial Officer
2026-02-09
32,249 shares
CHANG HUNG-LUN FRED
Officer
2026-02-09
25,799 shares
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
5 analysts
Rosenblatt
2026-03-09
Buy
Buy
Rosenblatt
2026-02-27
Buy
Buy
Needham
2026-02-27
Buy
Buy
B. Riley Securities
2026-02-27
Sell
Neutral
Rosenblatt
2026-02-19
Buy
Buy
Rosenblatt
2025-12-19
Buy
Buy
Rosenblatt
2025-12-11
Buy
Buy
Needham
2025-12-11
Buy
Buy
Northland Capital Markets
2025-11-17
Outperform
Outperform
B. Riley Securities
2025-11-10
Neutral
Sell
Past News Coverage
Recent headlines mentioning AAOI from our newsroom.
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