As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Applied Optoelectronics Inc (NASDAQ:AAOI), it is a company with strong financial health as well as a buoyant growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Applied Optoelectronics here.
Flawless balance sheet with reasonable growth potential
AAOI’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that AAOI has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. AAOI seems to have put its debt to good use, generating operating cash levels of 0.74x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Applied Optoelectronics, I’ve compiled three relevant factors you should look at:
- Historical Performance: What has AAOI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is AAOI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AAOI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AAOI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.