Applied Opt (AAOI) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Applied Opt stock (AAOI) is currently trading at $114.41. Applied Opt PS ratio (Price-to-Sales) is 19.41. Analyst consensus price target for AAOI is $90.30. WallStSmart rates AAOI as Sell.
- AAOI PE ratio analysis and historical PE chart
- AAOI PS ratio (Price-to-Sales) history and trend
- AAOI intrinsic value — DCF, Graham Number, EPV models
- AAOI stock price prediction 2025 2026 2027 2028 2029 2030
- AAOI fair value vs current price
- AAOI insider transactions and insider buying
- Is AAOI undervalued or overvalued?
- Applied Opt financial analysis — revenue, earnings, cash flow
- AAOI Piotroski F-Score and Altman Z-Score
- AAOI analyst price target and Smart Rating
Applied Opt
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Smart Analysis
Applied Opt (AAOI) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, revenue growth, institutional own.. Concerns around return on equity and operating margin. Mixed signals suggest waiting for clearer direction before acting.
Applied Opt (AAOI) Key Strengths (4)
Growing significantly faster than its price suggests
Revenue surging 33.90% year-over-year
68.39% held by institutions, strong professional interest
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
Applied Opt (AAOI) Areas to Watch (5)
Company is destroying shareholder value
Losing money on operations
Company is losing money with a negative profit margin
Very expensive at 19.4x annual revenue
Very expensive at 10.1x book value
Supporting Valuation Data
Applied Opt (AAOI) Detailed Analysis Report
Overall Assessment
This company scores 36/100 in our Smart Analysis, earning a F grade. Out of 9 metrics analyzed, 4 register as strengths (avg 8.8/10) while 5 fall into concern territory (avg 0.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Revenue Growth, Institutional Own.. Valuation metrics including PEG Ratio (0.78) suggest the stock is attractively priced. Growth metrics are encouraging with Revenue Growth at 33.90%.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Profit Margin. Some valuation metrics including Price/Sales (19.41), Price/Book (10.13) suggest expensive pricing. Profitability pressure is visible in Return on Equity at -7.94%, Operating Margin at -8.57%, Profit Margin at -8.39%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -7.94% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 33.90% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AAOI Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AAOI's Price-to-Sales ratio of 19.41x trades 182% above its historical average of 6.89x (96th percentile), historically expensive. The current valuation is 23% below its historical high of 25.31x set in Jul 2017, and 3366% above its historical low of 0.56x in Jul 2022. Over the past 12 months, the PS ratio has expanded from ~4.5x, reflecting growing market expectations outpacing revenue growth.
Compare AAOI with Competitors
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Data-driven financial summary for Applied Opt (AAOI) · TECHNOLOGY › COMMUNICATION EQUIPMENT
The Big Picture
Applied Opt is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 456M with 34% growth year-over-year. The company is currently unprofitable, posting a -8.4% profit margin.
Key Findings
Revenue growing at 34% YoY, reaching 456M. This pace significantly outperforms most COMMUNICATION EQUIPMENT peers.
The company is unprofitable with a -8.4% profit margin. The path to breakeven will be the key catalyst.
Free cash flow is -134M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Growth sustainability: can Applied Opt maintain 34%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 3.27, so expect amplified moves relative to the broader market.
Sector dynamics: monitor COMMUNICATION EQUIPMENT industry trends, competitive moves, and regulatory changes that could impact Applied Opt.
Bottom Line
Applied Opt is a high-conviction growth story with revenue accelerating at 34% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin -8.4% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Applied Opt(AAOI)
NASDAQ
TECHNOLOGY
COMMUNICATION EQUIPMENT
USA
Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber optic networking products globally. The company is headquartered in Sugar Land, Texas.