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Applied Optoelectronics, Inc. (AAOI) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Applied Optoelectronics, Inc.

AAOIMarket cap $11BPrice $130.2

Country🇺🇸United States

SectorTechnology

IndustryCommunications Equipment

Designs and manufactures fiber-optic components that power the data centers behind cloud computing and 5G networks. Its lasers and transceivers move internet traffic at light speed, making it a hidden backbone supplier for hyperscale giants like Amazon and Meta.

In Bastion Portfolios?

52W Return+308%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+27%9

Revenue Forecast

Rev CAGR (1y)+125%10

Rev CAGR (3y)+106%10

Rev CAGR (5y)+70%10

Earnings Forecast

EPS Growth Y+10%5

EPS Growth Y+2+443%10

EPS Growth Y+3+120%10

Quality

Margins

EBIT Margin-11%1

Net Income Margin-10%1

Free Cash Flow Margin-151%1

Debt

Net Debt/EBITDAna–

Efficiency

ROE-5%2

ROA-4%1

Earnings Stability22

GEAR+WEAK24

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)441

P/E Ratio (Forward 3y)136

P/BV6.62

EV Multiples

EV/EBITDA Fwd861

EV/EBIT Fwd2381

Yield

Free Cash Flow Yield-8.1%1

Dividend Yieldna–

Momentum

Short term

1 month return+23%10

3 month return+14%9

YTD return+273%10

Mid term

Price vs 52wHigh56%2

1 year return+315%10

Long term

3 year return+1333%10

5 year return+1786%10

Risk Shield

Price Risk

Beta3.61

Volatility139%1

Free Cash Flow

Free Cash Flow Margin-151%1

Free Cash Flow Yield-8.1%1

Quality

ROCE-5%1

Earnings Stability22

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

AAOIApplied Optoelectronics

Revenue FY25$456M

GROWTH RATING↗

VERY STRONG98 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+27%9

Revenue, next 1Y+125%10

Revenue, next 3Y, CAGR+106%10

Revenue, next 5Y, CAGR+70%10

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+443%10

EPS growth, FY28E+120%10

GROWTH ASSESSMENT

STRENGTHS

It out-grows 98% of companies worldwide.

Revenue grew 27%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 106%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 27%/yr over the last 3 years and is set to grow 106%/yr from here.

The runway holds up: revenue is set to grow 70%/yr over five years.10/10

WATCH

None flagged.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that's speeding up. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG89 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+23%10

3-month return+14%9

YTD return+273%10

MID & LONG-TERM▾SCORE

% of 52-week high56%2

1-year return+315%10

3-year return+1333%10

5-year return+1786%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +1333% over three years and +1786% over five, ahead of 90% of the market.

Strong recent results. The stock is outperforming over the past month (+23%), over three months (+14%) and so far this year (+273%).

WATCH

It's up 315% over the past year, but 44% below its 52-week high. That is a touch ahead of the market.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Applied Optoelectronics, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

AAOIApplied Optoelectronics

Revenue FY25$456M

GROWTH RATING↗

VERY STRONG98 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+27%9

Revenue, next 1Y+125%10

Revenue, next 3Y, CAGR+106%10

Revenue, next 5Y, CAGR+70%10

EARNINGS FORECAST▾SCORE

EPS growth, FY26E0%5

EPS growth, FY27E+443%10

EPS growth, FY28E+120%10

GROWTH ASSESSMENT

STRENGTHS

It out-grows 98% of companies worldwide.

Revenue grew 27%/yr over the last 3 years, ahead of 80% of companies worldwide.9/10

Revenue is set to grow 106%/yr over the next 3 years, ahead of most of the market.10/10

Revenue grew 27%/yr over the last 3 years and is set to grow 106%/yr from here.

The runway holds up: revenue is set to grow 70%/yr over five years.10/10

WATCH

None flagged.

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A top-tier grower that's speeding up. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY STRONG89 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+23%10

3-month return+14%9

YTD return+273%10

MID & LONG-TERM▾SCORE

% of 52-week high56%2

1-year return+315%10

3-year return+1333%10

5-year return+1786%10

MOMENTUM ASSESSMENT

STRENGTHS

Magnificent long-term results. Long-term holders have seen +1333% over three years and +1786% over five, ahead of 90% of the market.

Strong recent results. The stock is outperforming over the past month (+23%), over three months (+14%) and so far this year (+273%).

WATCH

It's up 315% over the past year, but 44% below its 52-week high. That is a touch ahead of the market.

WEAKNESSES

None flagged.

BOTTOM LINE

Momentum Leader

Short- and long-term returns both rank among the best globally. The market is behind it — a core fit for momentum strategies.

04Value

Are you paying a fair price for it?

Stop guessing on Applied Optoelectronics, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community