Applied Optoelectronics (AAOI) Fundamental Analysis: Revenue, Earnings & Valuation

3.09 / 10

Netural

AAOI's fundamental score is 3.1/10, indicating a fragile structure. Key positives include strong asset and cash metrics (Asset-MV and Cash-MV both score well), yet revenue, profit, and net-income ratios lag (Revenue-MV and Profit-MV score poorly). The Net Cash Flow from operating activities is declining YoY (-112.5%), and the PB-ROE factor is only marginally acceptable. Overall, the balance sheet is adequate but earnings power is weak, warranting a defensive posture.

Analysis Checks(5/10)

Revenue-MV

Value-0.39

Score0/3

Weight5.85%

1M Return3.78%

Net cash flow from operating activities per share (YoY growth rate %)

Value-112.54

Score2/3

Weight4.43%

1M Return3.03%

Profit-MV

Value0.46

Score0/3

Weight6.49%

1M Return4.24%

Net income-Revenue

Value-0.17

Score0/3

Weight8.42%

1M Return5.28%

PB-ROE

Value0.27

Score1/3

Weight11.69%

1M Return7.35%

Total profit (YoY growth rate %)

Value45.99

Score3/3

Weight11.77%

1M Return7.10%

Cash-UP

Value-0.06

Score1/3

Weight-3.28%

1M Return-2.50%

Interest coverage ratio (EBIT / Interest expense) (%)

Value15.48

Score2/3

Weight4.36%

1M Return3.00%

Asset-MV

Value-0.50

Score3/3

Weight33.94%

1M Return16.21%

Cash-MV

Value-0.07

Score2/3

Weight16.33%

1M Return9.71%

Is AAOI undervalued or overvalued?

AAOI scores 3.09/10 on fundamentals and holds a Fair valuation at present. Backed by its -9.19% ROE, -36.97% net margin, -19.42 P/E ratio, 5.41 P/B ratio, and -69.61% earnings growth, these metrics solidify its Netural investment rating.