Applied Optoelectronics Stock Analysis, Valuation (NASDAQ:AAOI)

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$43.75 $0.62 (1.44%) AAOI stock closing price Jun 22, 2018 (Closing)

Watch the robo advisor video of Applied Optoelectronics stock analysis on Amigobulls. Our analyst opinion covering the buy and sell arguments for AAOI stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Applied Optoelectronics Inc Stock Rating 3.4/5

Amigobulls AAOI stock analysis relies on business fundamentals such as Applied Optoelectronics revenue growth, profits and return on equity measures from the latest quarter 2018 Q1 earnings. Applied Optoelectronics valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Applied Optoelectronics stock rating which is indicative of the company's financial performance.

Should you buy AAOI stock?

  • Applied Optoelectronics's average operating margin of 18.44 was exceptional.
  • LTM Net margins were good at 16% for Applied Optoelectronics.
  • The price to earnings multiple of 13 is attractive when compared with the sector average PE ratio of 26.1.
  • Applied Optoelectronics generates a high return on invested capital of 20.6.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Applied Optoelectronics at 17.8.

Should you sell AAOI stock?

  • Operating cash flows are negative.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -21.

Comments on this video and Applied Optoelectronics stock

Investors can use Amigobulls Applied Optoelectronics stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Applied Optoelectronics revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. One can also combine technical analysis and fundamental analysis to get a holistic picture about AAOI stock.