Applied Optoelectronics, Inc.
AAOI NASDAQThere isn't enough cash-flow history to value Applied Optoelectronics yet. Its growth outlook scores weak; the balance sheet is solid.
At a glance
tap a tile to dig inOtto's verdict
the tiles above, in a line each- Health 6 of 12 health checks pass.
- Growth Revenue trend ≈ +6%/yr (extended trend, not a forecast).
- Street Analysts lean buy · avg target +67% from here.
- Dividend No dividend — this is a growth-only story.
- Insiders Insiders, last 12 months: 0 buys · 4 sells.
Not investment advice — Otto just crunches numbers.
Price trend
+426.7% over one year · S&P 500 +20.5%
What think
The market's move: +426.7% over the past year
Trading 35% up its 52-week range. Price is the market's live vote — not advice.
Analyst consensus: Buy · 5 analysts
Average 12-month target ₹15,055.18 — +66.8% vs today.
Yahoo Finance's analyst aggregate. Sentiment, not advice.
Insiders: 0 buys · 4 sales in recent filings
Open-market trades from SEC Form 4. Sales are often pre-planned (10b5-1); buys tend to say more. Sentiment, not advice.
InvestRight readers: 0 watching
This site's own activity — not a broad measure. Sentiment, not advice.
The snowflake
checks passed on each axis- Value 0/— checks
- Future 1/3 checks
- Past 1/3 checks
- Health 4/6 checks
- Dividend 0/— checks
What does this show?
Five quick health scores — Value, Future, Past, Health and Dividend — each 0–100%. A bigger, more even shape means a stock that scores well across the board; a spiky one is strong on some axes and weak on others.
Learn more on Investopedia →Fair value
our estimate · not analyst forecastNot enough cash-flow history to estimate a fair value for AAOI yet.
What does this show?
Our estimate of what one share is worth based on the cash the business is expected to generate (a discounted-cash-flow model), next to today's price. Below fair value hints undervalued, above hints expensive — it's an estimate, not a guarantee.
Learn more on Investopedia →Health checks
12 checks run on free data- ⚠ Debt well covered by cash flow operating cash flow covers -513.0% of debt
- ⚠ Earnings grew over the period 31.2M → -38.2M
- ⚠ Earnings trending up latest above earliest
- ⚠ Interest comfortably covered by profit EBIT covers interest -15.6×
- ⚠ Return on equity above 20% ROE -6.1%
- ⚠ Return on equity improving ROE -5.2% vs 13.7% 9yr ago
Show all 12 checks by axis
Value 0/— passed
- – Trading below our fair-value estimate
- – P/B below industry industry P/B not on the free feed
- – P/E below industry industry P/E not on the free feed
- – P/E below peer average peer P/Es land after the next refresh
- – P/S sane vs its own history needs multi-year P/S (Tier B)
- – More than 20% below fair value
Future 1/3 passed
- ⚠ Earnings trending up latest above earliest
- – Growth beats the industry industry growth not on the free feed
- – Earnings growth beats the market
- ✓ Revenue trending up 6.4%/yr over 9yr
- ⚠ Return on equity improving ROE -5.2% vs 13.7% 9yr ago
Past 1/3 passed
- ⚠ Earnings grew over the period 31.2M → -38.2M
- – High-quality earnings (few one-offs) one-off detection deferred — needs statement detail
- – Growth accelerating vs its average n/a (loss years)
- ✓ Revenue higher than five years ago 260.7M → 455.7M
- ⚠ Return on equity above 20% ROE -6.1%
Health 4/6 passed
- ✓ Debt/equity falling over time long-term debt/equity 0.0% vs 15.4%
- ✓ Debt is under 40% of equity debt/equity 25%
- ⚠ Debt well covered by cash flow operating cash flow covers -513.0% of debt
- ⚠ Interest comfortably covered by profit EBIT covers interest -15.6×
- ✓ Short-term assets cover long-term debt 675.7M vs 177.2M
- ✓ Short-term assets cover short-term bills 675.7M vs 257.3M
Dividend 0/— passed
- – Dividend covered by earnings and cash flow pays no dividend
- – Dividend growing over time pays no dividend
- – No dividend cut in recent years pays no dividend
- – Payout ratio under 75% pays no dividend
- – Yield beats the market pays no dividend
- – Yield in the top quartile of payers pays no dividend
What does this show?
Pass/fail rules on the company's finances — debt levels, profitability, cash cover and so on. More greens means a sturdier balance sheet; an n/a just means we didn't have that data point.
Learn more on Investopedia →Past performance
10-yr history from SEC EDGAR filingsRevenue
Earnings
Free cash flow
dashed line = what it'd look like growing at our ~9% market-average benchmark, for comparison
What does this show?
How revenue, earnings and free cash flow have grown over the years. Bars rising left-to-right show a growing business; the dashed line is a market-average pace for comparison.
Learn more on Investopedia →Revenue & expenses
Quarterly · all periods| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | |
|---|---|---|---|---|---|
| Revenue | ₹14.47B (+51%) | ₹12.85B | ₹11.35B | ₹9.85B | ₹9.56B |
| Cost of sales | ₹10.26B (+55%) | ₹8.84B | ₹8.17B | ₹6.87B | ₹6.63B |
| Gross profit | ₹4.20B (+44%) | ₹4.01B | ₹3.18B | ₹2.98B | ₹2.92B |
| Research & development | ₹2.46B (+44%) | ₹2.47B | ₹2.04B | ₹1.97B | ₹1.70B |
| Sales, general & admin | ₹2.99B (+44%) | ₹2.64B | ₹2.89B | ₹2.54B | ₹2.07B |
| Tax & other | ₹123.47M (+449%) | ₹-907,235,090 | ₹-24,023,210 | ₹-658,293,380 | ₹22.49M |
| Net income | ₹-1,366,834,510 (-56%) | ₹-193,525,620 | ₹-1,716,654,560 | ₹-870,769,580 | ₹-877,852,120 |
Change in brackets is vs. the same period a year earlier. Reported figures from Yahoo Finance, shown in INR.
What does this show?
How a company turns sales into profit. Revenue splits into the direct cost of sales and the gross profit left over; from that gross profit come operating costs (R&D, SG&A), tax and interest — what survives is net income. Every figure is also shown as a share of revenue, so you can compare periods and companies of different sizes.
Learn more on Investopedia →Future
trend, not analyst forecastRevenue · extended at 6.4%/yr
Dashed bars just extend the historical trend (capped at ±15%/yr) — the same growth our DCF uses. It's arithmetic on the past, not an analyst forecast; real futures bend.
What does this show?
Solid bars are history; dashed bars simply extend the past growth trend a few years forward — capped so it stays sane. It's a trend line, not an analyst forecast.
Learn more on Investopedia →Dividend
from cash actually paid, not promisesApplied doesn't pay a dividend — Otto leaves this axis blank rather than guessing.
What does this show?
The share of profit paid back to shareholders as cash. Yield is that cash as a % of the price; the payout gauge shows how much of earnings is paid out (over ~75% can be hard to sustain).
Learn more on Investopedia →Ownership & insiders
from SEC Form 4 filings0 open-market buys · 4 sales in the last 10 saved filings
- Tax-withhold Kuo David C · *** See Remarks 3,264 sh · ₹37.26M 2026-07-22
- Tax-withhold Murry Stefan J. · Chief Financial Officer 5,408 sh · ₹61.73M 2026-07-22
- Tax-withhold Chang Hung-Lun (Fred) · *** See Remarks 4,676 sh · ₹53.37M 2026-07-22
- Tax-withhold Lin Chih-Hsiang (Thompson) · President and CEO 15,640 sh · ₹178.52M 2026-07-22
- Tax-withhold Yeh Shu-Hua (Joshua) · *** See Remarks 4,709 sh · ₹53.75M 2026-07-22
- Sell Yeh Shu-Hua (Joshua) · *** See Remarks 1,285 sh · ₹14.76M 2026-07-21
- Sell Murry Stefan J. · Chief Financial Officer 4,000 sh · ₹46.74M 2026-07-10
- Sell Yeh Shu-Hua (Joshua) · *** See Remarks 6,000 sh · ₹98.71M 2026-06-18
- Sell Chang Hung-Lun (Fred) · *** See Remarks 40,329 sh · ₹658.50M 2026-06-17
- Tax-withhold Yeh Shu-Hua (Joshua) · *** See Remarks 23,397 sh · ₹386.91M 2026-06-12
Insiders must report within two business days. Sales are often pre-planned (10b5-1) rather than a signal — buys tend to say more.
What does this show?
Buys and sells by the company's own directors and officers, from their SEC filings. Insiders sell for many reasons, but clusters of open-market buying can signal confidence.
Learn more on Investopedia →Spot a missing competitor? Sign in to add it — it'll show for everyone.
What does this show?
A few peers in the same business, each with its own mini snowflake, so you can see how this company stacks up rather than judging it in isolation. Anyone signed in can add a missing competitor — it shows for everyone, marked as user-added.
Learn more on Investopedia →Leadership
Yahoo Finance · photos & bios via Wikidata-
Dr. Chih-Hsiang Lin Ph.D.
Founder, Chairman, President & CEO
- Age
- 62
- Total yearly comp
- ₹184.85M
-
Dr. Stefan J. Murry Ph.D.
CFO & Chief Strategy Officer
- Age
- 52
- Total yearly comp
- ₹90.96M
-
Mr. David C. Kuo J.D.
Senior VP, Chief Legal & Compliance Officer and Secretary
- Age
- 42
- Total yearly comp
- ₹60.10M
-
Dr. Hung-Lun Chang Ph.D.
Senior VP of Optical Component Business Unit & North America GM
- Age
- 61
- Total yearly comp
- ₹77.88M
-
Mr. Shu-Hua Yeh
Senior VP of Network Equipment Module Business Unit & Asia GM
- Age
- 59
- Total yearly comp
- ₹71.66M
-
-
-
Ranked by title — reporting lines aren't public data. Compensation is the total Yahoo reports; blank means it isn't disclosed there.
In the news
- Applied Optoelectronics and Coherent Gain 7%, Lumentum Adds 5% as Risk-On Feeling Spreads to Optics Stocks
- Applied Optoelectronics (AAOI) Stock May Be 26% Undervalued On Cash Flow
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- Coherent Sinks 11%, Applied Optoelectronics Falls 10%, Lumentum Drops 9% as Traders Question AI Spending Spree
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- These high-flying tech stocks are down 65% — here's how to shop the sell-off: One Big Investment Idea
- COHR, AAOI, LITE, POET: Photonic Stocks Join Google Capex-Fueled AI Rally
- Applied Optoelectronics (AAOI) Soars 15.8% Ahead of Earnings; Hedge Fund Holdings More Than Triple
My notes
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Hi! I can explain Applied's numbers — valuation, health, the dividend, the fair-value gap. What would you like to know?
Otto explains what's on this page — not investment advice.