Applied Optoelectronics Stock Analysis, Valuation (NASDAQ:AAOI)

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$31.99 $0 (0%) AAOI stock closing price Feb 16, 2018 (Closing)
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Applied Optoelectronics
Updated on : Feb 16, 2018
previous close
AAOI 32 (0%)
NASDAQ 7239.5 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Electronics-Semiconductors
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23.9%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
45.2M
Debt/Equity Ratio:
 0.14
Compared to the industry
Cash Flow
Operating cash flow:
$7.6M
Net Income:
$19.4M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Low Debt Burden
ROIC
ROE
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AAOI PS :
1.6
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
34.1%
Return on Equity:
31.2%
Free Cash Flow Margin:
-13.8%
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Applied Optoelectronics Stock Analysis

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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 3.9/5

Amigobulls AAOI stock analysis relies on business fundamentals such as Applied Optoelectronics revenue growth, profits and return on equity measures from the latest quarter 2017 Q3 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 sales grew by 26.7% year on year in 2017 Q3.
  • Applied Optoelectronics had a healthy average operating margin of 23.9% over the last 4 quarters.
  • Net margins came in at average 21.3% for Applied Optoelectronics over the last twelve months.
  • With a debt/equity ratio of  0.14, Applied Optoelectronics is comparatively less leveraged than its peers in the Computer and Technology sector.
  • The price to earnings multiple of 7.6 is attractive when compared with the industry average PE ratio of 26.9.
  • Applied Optoelectronics has an attractive ROIC (Return on Invested Capital) of 34.1%
  • Applied Optoelectronics has a good Return On Equity (ROE) of 31.2%.

Should you sell AAOI stock?

  • Cash flow from operations is low at 0.4 times the net income.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -13.8%.

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.