Applied Optoelectronics AAOI
United StatesTechnology · Communication EquipmentUSD
163.40 USD (+33.3%)
5 analysts
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Applied Optoelectronics, Inc. (AAOI) is a manufacturer of optical components, such as lasers and transceivers, used in data communication networks, telecommunications, and data centers.
Key points
from its scores- ✓Strong growth10.0
- ✓Good share-price trend9.8
- ✕Unfavourable risk and backdrop0.3
- ✕Little or no dividend1.5
- ✕Little competitive advantage1.6
AI analysis
bottom line, main risk, context and newsGrowth justifies the multiple, but debt and lack of profitability require close monitoring.
AAOI shows explosive revenue growth (86.4%) driven by AI demand in data centers, but its financial health is fragile (net debt 6.22x EBITDA, operating margin -12.88%) and profitability is negative (ROE -5.45%), making it a high-risk, high-reward bet.
Extreme leverage (Net Debt/EBITDA of 6.22x) combined with negative operating margins (-12.88%) creates a real risk of financial distress if growth slows or interest rates remain high.
Context and risks
No relevant recent news.
Is Applied Optoelectronics stock cheap or expensive?
at the analysis dateOn Price / sales, it trades 231% above the Technology median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| Price / book | 6.2 | 6.3 | −2% |
| Price / sales | 17.5 | 5.3 | +231% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Technology: 5.3).
Average analyst target: 163.40 USD, +33.3% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 1.6 (sector 6.4), Growth 10.0 (sector 7.5).
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- Forward P/E
- 26.6
- EV / EBITDA
- −316.6
- Price / book
- 6.2
- Price / sales
- 17.5
- PEG
- 0.78
- Market cap
- 10.4B USD
- Enterprise value
- 10.2B USD
Profitability
- ROE
- −5.4%
- ROA
- −2.7%
- ROIC (approx.)
- −3.9%
- Gross margin
- 28.9%
- Operating margin
- −12.9%
- Net margin
- −9.6%
- Free cash flow
- −887.1M USD
- FCF yield
- −8.5%
Solvency
- Total debt
- 300.1M USD
- Net debt
- −199.6M USD
- Cash
- 499.7M USD
- EBITDA
- −32.1M USD
- Net debt / EBITDA
- 6.22
- Debt / equity
- 17.99
- Current ratio
- 2.78
- Quick ratio
- 1.90
Growth
- Revenue growth
- +86.4%
- EPS (TTM)
- −0.75 USD
- EPS (forward)
- 4.60 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 3.84
- Analyst consensus
- none (5)
- Target price
- 163.40 USD
- 52-week range
- 18.50 – 233.67
Recent news
All AAOI news →Compare it with its sector
All 283 in Technology →Frequently asked questions about Applied Optoelectronics
Is Applied Optoelectronics stock cheap or expensive?
On Price / sales, it trades 231% above the Technology median. Valuation score: 5.0 out of 10 (median for Technology: 5.3). Average analyst target: 163.40 USD, +33.3% versus the price. This is not investment advice.
What score does Applied Optoelectronics get on MeridIAn Screener?
It scores 4.4 out of 10, rank 1,889 of 2,130 (better than 10% of the companies analysed). Its strongest category is Growth (10.0) and its weakest, Risk & Context (0.3). Analysis of 08/10/2026.
How much is Applied Optoelectronics worth on the stock market?
Its market capitalisation is 10.4B USD and its enterprise value, debt included, is 10.2B USD.
How much debt does Applied Optoelectronics have?
It has more cash than debt: net cash of 199.6M USD.
Does Applied Optoelectronics pay a dividend?
It pays no dividend, or almost none.
How has Applied Optoelectronics stock performed over the last year?
It has risen 351.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 18.50 and 233.67 USD. Past performance does not guarantee future results.
What do analysts think of Applied Optoelectronics?
5 analysts cover it; their average recommendation is “none” and their average target is 163.40 USD (+33.3% versus the price). It is an estimate, not market data.