Applied OPTOELECTRONICS, Inc. (AAOI) intrinsic value & 10-year financials
Applied OPTOELECTRONICS, Inc. (AAOI) has a Graham intrinsic value of $67.44 per share. At $75.57 on Oct 17, 2026, the stock trades 12% above that value. Over the last 10 fiscal years revenue grew 6.4% a year to $455.7M, with an average return on invested capital of -10.4%.
- Graham intrinsic value
- $67.44
- Share price (Oct 17, 2026)
- $75.57
- Price vs Graham value
- 12% above
- Market cap
- $4.5B
- Revenue (FY2025)
- $455.7M
- Revenue growth (10-yr CAGR)
- 6.4%
- ROIC (10-yr avg)
- -10.4%
- Free cash flow (FY2025)
- -$353.6M
AAOI 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $455.7M | -$38.2M | -$0.64 | -$353.6M | -12.0% | -11.1% |
| FY2024 | $249.4M | -$186.7M | -$4.50 | -$112.9M | -28.4% | -35.9% |
| FY2023 | $217.6M | -$56.0M | -$1.75 | -$17.0M | -19.0% | -19.7% |
| FY2022 | $222.8M | -$66.4M | -$2.38 | -$17.2M | -26.5% | -23.4% |
| FY2021 | $211.6M | -$54.2M | -$2.01 | -$19.6M | -26.8% | -19.7% |
| FY2020 | $234.6M | -$58.5M | -$2.67 | -$59.8M | -20.8% | -17.2% |
| FY2019 | $190.9M | -$66.0M | -$3.31 | -$30.5M | -25.5% | -15.5% |
| FY2018 | $267.5M | -$2.1M | -$0.11 | -$57.8M | -4.0% | -1.6% |
| FY2017 | $382.3M | $74.0M | $3.67 | $17.3M | 22.7% | 29.3% |
| FY2016 | $260.7M | $31.2M | $1.76 | $7.7M | 8.8% | 10.5% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
APPLIED OPTOELECTRONICS, INC. has demonstrated mature, steady growth, with revenue compounding at 6.4% annually over the past decade.
APPLIED OPTOELECTRONICS, INC. has historically struggled to out-earn its cost of capital, averaging just -10.4% ROIC.
APPLIED OPTOELECTRONICS, INC. has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, APPLIED OPTOELECTRONICS, INC. is modeled at 6.4% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $67.44 per share.