Latest Ratios: P/E Ratio -178.8x · EV/EBITDA N/A · ROE -7.9%. (2011–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.0B | $2.1B | $1.5B | $617M | $53M | $138M | $186M | $237M | $303M | $762M | $415M |
| Enterprise Value | $9.0B | $2.0B | $1.7B | $693M | $183M | $254M | $298M | $320M | $336M | $728M | $408M |
| P/E Ratio → | -178.77 | — | — | — | — | — | — | — | — | 10.31 | 13.32 |
| P/S Ratio | 19.82 | 4.60 | 6.14 | 2.84 | 0.24 | 0.65 | 0.79 | 1.24 | 1.13 | 1.99 | 1.59 |
| P/B Ratio | 9.38 | 2.86 | 6.68 | 2.87 | 0.28 | 0.54 | 0.67 | 0.87 | 0.92 | 2.29 | 1.83 |
| P/FCF | — | — | — | — | — | — | — | — | — | 54.61 | 58.35 |
| P/OCF | — | — | — | — | — | — | — | — | 21.61 | 9.04 | 7.27 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.50 | 6.64 | 3.18 | 0.82 | 1.20 | 1.27 | 1.68 | 1.26 | 1.90 | 1.57 |
| EV / EBITDA | — | — | — | — | — | — | — | — | 17.75 | 6.79 | 10.97 |
| EV / EBIT | — | — | — | — | — | — | — | — | — | 8.38 | 17.73 |
| EV / FCF | — | — | — | — | — | — | — | — | — | 52.22 | 57.36 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 30.0% | 30.0% | 24.8% | 27.1% | 15.1% | 17.8% | 21.5% | 24.2% | 32.8% | 43.5% | 33.4% |
| Operating Margin | -12.0% | -12.0% | -28.4% | -19.0% | -26.5% | -26.8% | -20.8% | -25.5% | -4.0% | 22.7% | 8.8% |
| Net Profit Margin | -8.4% | -8.4% | -74.9% | -25.8% | -29.8% | -25.6% | -24.9% | -34.6% | -0.8% | 19.3% | 12.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -7.9% | -7.9% | -84.1% | -28.1% | -30.2% | -20.3% | -21.2% | -21.9% | -0.6% | 26.4% | 15.9% |
| ROA | -4.5% | -4.5% | -39.9% | -14.1% | -15.4% | -11.6% | -12.3% | -14.1% | -0.5% | 19.1% | 10.5% |
| ROIC | -7.9% | -7.9% | -16.5% | -10.2% | -12.9% | -11.2% | -9.8% | -10.2% | -2.4% | 25.1% | 8.1% |
| ROCE | -8.5% | -8.5% | -21.1% | -14.6% | -19.2% | -15.7% | -13.0% | -12.7% | -2.8% | 27.0% | 10.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.23 | 0.23 | 0.83 | 0.56 | 0.84 | 0.59 | 0.56 | 0.52 | 0.27 | 0.15 | 0.19 |
| Debt / EBITDA | — | — | — | — | — | — | — | — | 4.68 | 0.46 | 1.16 |
| Net Debt / Equity | — | -0.07 | 0.54 | 0.35 | 0.71 | 0.45 | 0.40 | 0.30 | 0.10 | -0.10 | -0.03 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | 1.74 | -0.31 | -0.19 |
| Debt / FCF | — | — | — | — | — | — | — | — | — | -2.39 | -1.00 |
| Interest Coverage | -12.36 | -12.36 | -26.36 | -4.94 | -9.51 | -8.64 | -8.09 | -8.51 | -7.84 | 101.34 | 13.41 |
Net cash position: cash ($216M) exceeds total debt ($167M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.63 | 2.63 | 1.77 | 1.85 | 1.32 | 1.78 | 2.03 | 2.11 | 2.51 | 3.25 | 2.63 |
| Quick Ratio | 1.91 | 1.91 | 1.25 | 1.16 | 0.75 | 0.93 | 0.96 | 1.18 | 1.30 | 2.18 | 1.76 |
| Cash Ratio | 0.84 | 0.84 | 0.40 | 0.49 | 0.18 | 0.32 | 0.42 | 0.66 | 0.72 | 1.17 | 0.84 |
| Asset Turnover | — | 0.39 | 0.46 | 0.56 | 0.55 | 0.47 | 0.49 | 0.41 | 0.57 | 0.84 | 0.81 |
| Inventory Turnover | 1.74 | 1.74 | 2.13 | 2.49 | 2.37 | 1.88 | 1.67 | 1.70 | 1.93 | 2.85 | 3.35 |
| Days Sales Outstanding | — | 195.75 | 170.96 | 80.98 | 100.77 | 96.77 | 67.58 | 66.27 | 41.67 | 57.14 | 69.67 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | 9.7% | 7.5% |
| FCF Yield | — | — | — | — | — | — | — | — | — | 1.8% | 1.7% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $60M | $42M | $32M | $28M | $27M | $22M | $20M | $20M | $20M | $18M |
High customer concentration risk
According to recent market data, AAOI trades at a price-to-sales ratio of 23.51, which appears to reflect aggressive investor expectations for future growth rather than current fundamental performance, especially when compared to the more stable valuation profiles of diversified semiconductor peers in the broader optical technology sector.
The current valuation suggests the market is pricing the company as a high-growth speculative play on the 800G upgrade cycle rather than a mature industrial provider. Investors should monitor whether this premium can be sustained if the company fails to demonstrate a clear path toward GAAP profitability in upcoming quarters.
As reported in financial statements, AAOI's return on invested capital has remained consistently negative, with a -1.3% reading in 2026Q1, indicating that the company is currently destroying shareholder value rather than compounding it through its heavy investments in vertically integrated laser fabrication and manufacturing infrastructure.
The persistent inability to generate positive returns on capital suggests that the company's high fixed-cost base is not yet being offset by sufficient scale or pricing power. This trend warrants further investigation into whether the current capital allocation strategy will ever yield the necessary returns to justify the ongoing asset expansion.
Based on the provided quarterly data, AAOI's cash conversion cycle reached 203 days in 2026Q1, a significant increase from previous periods that highlights the operational friction inherent in managing high-precision inventory and the extended payment terms often demanded by large-scale hyperscale data center customers.
The lengthening of the cash conversion cycle suggests that the company is becoming increasingly reliant on its cash buffer to fund operations while waiting for receivables to settle. This inefficiency appears to be a structural drag on the company's ability to self-fund its R&D and manufacturing requirements.
As evidenced by the latest quarterly filings, AAOI maintains a current ratio of 3.83, which provides a substantial liquidity cushion, yet this metric may be misleading as it is heavily supported by inventory levels that could face rapid obsolescence in the fast-moving optical transceiver market.
While the balance sheet appears healthy on the surface, the high reliance on inventory to maintain liquidity suggests that the company's position could deteriorate rapidly under stress. Investors should monitor the quality of these assets, as any write-downs could quickly erode the current liquidity advantage.
The price-to-sales ratio is frequently misapplied to AAOI, as it obscures the company's structural inability to convert top-line revenue into bottom-line earnings due to its high fixed-cost manufacturing model and the intense pricing pressure typical of the hyperscale data center component supply chain.
Analysts should instead focus on free cash flow yield or operating margin expansion, as these metrics better capture the company's true earning power and capital intensity. Relying on P/S ratios risks overestimating the company's value by ignoring the significant costs required to maintain its competitive technical moat.
Includes 30+ ratios · 15 years · Updated daily
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Quick answers to the most common questions about buying AAOI stock.
Applied Optoelectronics, Inc.'s current P/E ratio is -178.8x. The historical average is 22.5x.
Applied Optoelectronics, Inc.'s return on equity (ROE) is -7.9%. The historical average is -12.8%.
Based on historical data, Applied Optoelectronics, Inc. is trading at a P/E of -178.8x. Compare with industry peers and growth rates for a complete picture.
Applied Optoelectronics, Inc. has 30.0% gross margin and -12.0% operating margin.