Applied Optoelectronics, Inc. (AAOI) Stock Analysis
Last updated Oct 27, 2026
Health Check
Last analyzed Oct 23, 2026
- Financial Health 25
- Profitability 70
- Business Quality 60
- Balance Sheet 35
- Cash Flow 60
Why this rating?
Health 45/100 — Speculative
Entry timing is weak right now. Quality may be fine; the setup is not.
Company overview
Applied Optoelectronics, Inc. (AAOI) is a Communication Equipment company in the Technology sector. Compound Radar rates Applied Optoelectronics, Inc. 45/100 (Speculative) due to solid business quality, strong revenue growth, and elevated leverage.
Investment profile
- Quality Moderate
- Growth Strong
- Balance Sheet Stretched
- Valuation Attractive
Financial highlights
Valuation
- Forward P/E 16.72
- PEG 0.78
- EV/Revenue 9.87
Profitability
- Revenue Growth 86.4%
- Gross Margin 28.9%
- Operating Margin -12.9%
- Net Margin -9.6%
- ROE -5.4%
Financial strength
- Cash $499.74M
- Debt $300.14M
- Net Cash $199.60M
- Free Cash Flow $-353.95M
- Current Ratio 2.78
Similar companies
Peers in Communication Equipment, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Cisco Systems, Inc. Communication Equipment CSCO$111.38 76 Health 76 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Motorola Solutions, Inc. Communication Equipment MSI$483.61 75 Health 75 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Lumentum Holdings Inc. Communication Equipment LITE$866.18 74 Health 74 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Extreme Networks, Inc. Communication Equipment EXTR$23.85 69 Health 69 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Zebra Technologies Corporation Communication Equipment ZBRA$381.67 68 Health 68 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Ciena Corporation Communication Equipment CIEN$351.15 65 Health 65 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Harmonic Inc. Communication Equipment HLIT$10.58 65 Health 65 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
- Hewlett Packard Enterprise Company Communication Equipment HPE$60.84 57 Health 57 / 100
Solid fundamentals with some trade-offs across our health dimensions.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
FAQ
How Compound Radar scores and tracks Applied Optoelectronics, Inc. (AAOI).