Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China.
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The company offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, and distribution equipment, as well as amplifiers.
It sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels.
Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.
Quality Score breakdown
Overall quality38/100
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Profitability10
How much profit the company makes from its sales and capital
Quality Growth83
Are margins and returns getting better?
Cashflow33
Do the profits arrive as real cash?
Financial strength86
Debt, balance sheet and risk of trouble
Investment0
Does it invest with discipline instead of growing at any price?
Low Volatility0
How calm the share price moves, does not count
Price momentum33
Price momentum of the last 3 to 12 months, does not count
In the last 6 months, 7 officers or directors sold shares worth $94.6M and none bought.
SaleStefan J. MurryChief Financial Officer15× since Dec 10, 2025: 130,000 shares, avg. $129.96$16.9MOct 12, 2026
SaleShu-Hua (Joshua) Yeh*** See Remarks9× since Mar 9, 2026: 151,980 shares, avg. $143.96$21.9MOct 5, 2026
SaleHung-Lun (Fred) Chang*** See Remarks6× since Mar 16, 2026: 180,531 shares, avg. $146.04$26.4MSep 8, 2026
SaleDavid C Kuo*** See Remarks6× since Dec 23, 2025: 121,954 shares, avg. $107.81$13.1MJun 12, 2026
SaleChih-Hsiang (Thompson) LinPresident and CEO, Director2× since May 19, 2026: 117,000 shares, avg. $169.87$19.9MJun 12, 2026
SaleMin-Chu (Mike) ChenDirector2× since Mar 6, 2026: 19,582 shares, avg. $146.09$2.9MJun 2, 2026
SaleCynthia DeLaneyDirector2× since Mar 4, 2026: 77,575 shares, avg. $164.54$12.8MMay 26, 2026
SaleWilliam H YehDirector15,000 shares at $105.76$1.6MMar 9, 2026
SaleRichard B BlackDirector3,231 shares at $95.00$306,945Mar 5, 2026
SaleElizabeth G LoboaDirector2× since Dec 15, 2025: 106,468 shares, avg. $93.22$9.9MMar 3, 2026
Plus 29 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+82.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.2%
Start year 2020 (pandemic). Over 10 years: +9.1% a year
Revenue growth 15 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.5%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−20.8% (2020) → −12.0% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Communication Equipment · 302 stocks
Beats the industry median on 2/9 measures
Overall it trails its industry peers.
Valuation
Quality Score38 · Bottom 25%
Profitability
Return on assets−3.3% · Bottom 25%
Net margin (12 months)−4.4% · Bottom 25%
Operating margin (12 months)−0.5% · Below median
Growth and dividend
Revenue growth (quarter YoY)127.5% · Top 25%
Balance sheet
Debt / equity0.18× · Above median
Valuation Multiplesvs Communication Equipment median · lower = cheaper
Applied Opt has a Quality Score of 38/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Applied Opt (AAOI)?
Applied Opt reported trailing-twelve-month revenue of about $747M (latest available figure, as of Nov 7, 2026).
What is the PEG ratio of AAOI?
The PEG ratio of Applied Opt is 0.78 (P/E divided by earnings growth, as of Nov 7, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Applied Opt (AAOI)?
Balance-sheet figures for Applied Opt (as of Nov 7, 2026): return on equity −2.3%, debt of 0.18 per unit of equity. They feed the Quality Score of 38/100, which measures business quality independently of the share price.
Which stocks are comparable to Applied Opt?
From the same area (Technology) we also value Cisco Systems, Inc, Foxconn Industrial Internet Co, Zhongji Innolight Co, Motorola Solutions, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
What is the share price of Applied Opt (AAOI)?
The closing price on Nov 6, 2026 was $50.13. We carry closing prices from our data provider, not a live tick.
Key figures of Applied Opt
How large is the market capitalisation of Applied Opt (AAOI)?
The market capitalisation of Applied Opt is $4.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Applied Opt (AAOI)?
The price-to-sales ratio of Applied Opt is 5.70 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Applied Opt (AAOI)?
Earnings per share at Applied Opt are $−0.7500. Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Applied Opt (AAOI)?
The net margin of Applied Opt is −8.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Applied Opt (AAOI)?
The return on equity (ROE) of Applied Opt is −2.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Applied Opt (AAOI)?
On an EBIT basis the return on assets of Applied Opt is −11.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Applied Opt (AAOI)?
The operating margin of Applied Opt is −0.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Applied Opt (AAOI)?
Revenue at Applied Opt is growing +128% versus a year earlier (3y avg +26.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How much free cash flow does Applied Opt (AAOI) generate?
The free cash flow of Applied Opt is −$354M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does Applied Opt (AAOI) hold?
Applied Opt holds more cash than debt, $48.7M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Thin data
Nov 7, 2026