# Applied Optoelectronics Inc. (AAOI) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Communication Equipment. Price $105.53, market value $9.0 billion.

## Valuation
- **P/E (trailing): n/a** (negative earnings). Applied Optoelectronics Inc. reported negative earnings over the last twelve months, so the P/E is not meaningful; use price-to-sales, EV/EBITDA and free-cash-flow yield instead.
- **PEG: 0.27**. A PEG of 0.27 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 15.0×**. Each dollar of revenue is priced at 15.0×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 5.3×**. The shares trade at 5.3× book value; most of the value is in earnings power and intangibles rather than the balance sheet.

## Profitability
- **Gross margin: 28.9%**. Applied Optoelectronics Inc. keeps 28.9% of revenue after the direct cost of what it sells.
- **Operating margin: -11.3%**. Operating margin is negative: the business loses money before interest and tax.
- **Net margin: -8.4%**. The company reported a net loss over the last twelve months.
- **Return on equity: -5.2%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: -9.5%**. Return on all capital, debt included, is -9.5%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: -4.9%**. Each dollar of assets produces -4.9% of profit.

## Growth
- **Revenue growth (1 yr): 82.8%** (3-yr 26.9%/yr, 5-yr 14.2%/yr). Revenue grew 82.8% over the last year, against 14.2% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 85.8%**. Earnings per share rose 85.8%, roughly in step with revenue.

## Financial health
- **Debt to equity: 0.05**. Debt is 0.05 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 5.4×**. It would take 5.4 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Altman Z-score: 13.49**. A Z-score of 13.49 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend: none**. Applied Optoelectronics Inc. does not currently pay a dividend.

## Analyst view
- **Analyst consensus: buy** (5 analysts). 5 analysts cover Applied Optoelectronics Inc.; the consensus is buy, with an average price target of $163.40 (+55% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 352.5%** (YTD 202.7%, 3-mo -40.4%). The shares are up 352.5% over twelve months including dividends.
- **From 52-week high: -54.8%** (470.4% above the low). Trading 55% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 44**. An RSI of 44 is neutral.
- **Beta (1 yr): 4.29** (volatility 146%). Beta of 4.29 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AAOI · Page: https://foliofundamentals.com/stocks/aaoi

Not investment advice.