ScoreWhy is Applied Optoelectronics, Inc. ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of 12.94% and Operating profit at 1.50% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -8.32
2
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -40.04%, its profits have risen by 3.4%
3
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -40.04% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Applied Optoelectronics, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Applied Optoelectronics, Inc.
-37.13%
0.99
125.30%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.94%
EBIT Growth (5y)
1.50%
EBIT to Interest (avg)
-8.32
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0.37
Sales to Capital Employed (avg)
0.66
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
0
ROE (avg)
0
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
3.06
EV to EBIT
-18.21
EV to EBITDA
-27.99
EV to Capital Employed
2.50
EV to Sales
3.43
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-13.73%
ROE (Latest)
-19.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend28What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 2.72 times
RAW MATERIAL COST(Y)
Fallen by -39.29% (YoY
CASH AND EQV(HY)
Highest at USD 154.01 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 29.18 %
NET SALES(Q)
Highest at USD 102.95 MM
PRE-TAX PROFIT(Q)
At USD -9.1 MM has Grown at 40.12%
NET PROFIT(Q)
At USD -9.1 MM has Grown at 40.12%
EPS(Q)
Highest at USD -0.16
-6What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD -155.45 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.73 times
Here's what is working for Applied Optoelectronics, Inc.
Net Sales
At USD 102.95 MM has Grown at 33.47%
over average net sales of the previous four periods of USD 77.14 MMMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Inventory Turnover Ratio
Highest at 2.72 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Net Sales
Highest at USD 102.95 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Pre-Tax Profit
At USD -9.1 MM has Grown at 40.12%
over average net sales of the previous four periods of USD -15.19 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD -9.1 MM has Grown at 40.12%
over average net sales of the previous four periods of USD -15.19 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD -0.16
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 154.01 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 29.18 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -39.29% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 6.4 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Applied Optoelectronics, Inc.
Operating Cash Flow
Lowest at USD -155.45 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Debtors Turnover Ratio
Lowest at 2.73 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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