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Applied Optoelectronics, Inc. Quality Score

AAOI

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Quality40

Valuation is the primary weakness (avg 0/100). No single area scores well.

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
0/100
-77.0x

Negative earnings, no valuation support

Cash Flow Multiple
0/100
-14.2x

Negative FCF, no valuation support

Revenue Growth
100/100
27.9%

Above 10% CAGR, strong compounder

Cash Flow Growth
0/100
Negative FCF

FCF negative, burning cash after capex

Business Quality & Capital Allocation

Share Dilution
0/100
192.9%

Heavy dilution above 5%

Margin Trend
100/100
+15.2pp

Expanded 3+pp, strong improvement

Capital Structure
100/100
-$363M

Net cash position, no leverage concern

2022
$25.0M
$64.0M
2023
$45.0M
$29.0M
2024
$67.0M
$37.0M
2025
$206M
$85.0M
TTM
$500M
$137M
CashDebt
Return on Capital
0/100
-4.8%

Below 8%, may not cover cost of capital

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Applied Optoelectronics (AAOI) quality: score, margins and returns

Applied Optoelectronics (AAOI) scores 40/100 on Intrinsiqq's quality score (a mixed business), a weighted blend of 6 metrics each scored 0 to 100, on -11.3% operating margins and -4.8% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.

Frequently asked

Is Applied Optoelectronics (AAOI) a high-quality business?+

Applied Optoelectronics scores 40 out of 100 on Intrinsiqq's quality score, a weighted blend of 6 metrics each scored 0 to 100, which rates it a mixed business on these measures. Recent figures include a -11.3% operating margin and a -4.8% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does Applied Optoelectronics's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from AAOI's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Applied Optoelectronics scores well and where it falls behind.

What is Applied Optoelectronics's return on invested capital (ROIC)?+

Applied Optoelectronics earns about -4.8% on its invested capital, which is weak. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to AAOI's margins and growth on this scorecard to judge durability.

How profitable is Applied Optoelectronics?+

Applied Optoelectronics runs an operating margin of about -11.3% and a net margin of about -9.6%. Revenue has grown at roughly 14.2% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.

How the market compares: US profitability statistics

SourceQuality score computed from the 10-Q filed 3 Aug 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 7 Aug 2026. How this is calculated.

Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.

Peers

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Held by ETFs

AAOI is in 68 US ETFs. The largest of them, with AAOI's weight in each:

Spot a number that looks wrong? Check it in AAOI's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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