AAOI
Applied Optoelectronics, Inc.
AAOI offers stronger modeled upside, but that advantage does not outweigh its weaker overall profile.
FORTY
Formula Systems (1985) Ltd.
FORTY has the edge over AAOI overall, supported by stronger valuation and lower modeled downside.
AAOI Fundamentals
| Metric | Status |
|---|---|
| Strong | |
| Under pressure | |
| Weak | |
| Unavailable |
AAOI's revenue is currently strong, but its profitability and cash flow are under pressure. There isn't enough data to rate its balance sheet.
FORTY Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Stable | |
| Strong |
FORTY's revenue, profitability and balance sheet are currently healthy, and its cash flow is stable.
AAOI PE Valuation
AAOI has no meaningful PE right now: it lost money over the past year. If it returns to profit as analysts expect, today's price would be 18x next year's earnings.
FORTY PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 3.1x | $121 | — |
| Cheap | 14x | $537 | +344% |
| Fair | 19x | $755 | +524% |
| Expensive | 30x | $1,202 | +893% |
Historical ranges are pointers, not guarantees.
FORTY's PE is in its cheap range at 3.0x.
AAOI Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Returning to profit | |
| Strong growth | |
| Strongly improving | |
| Limited | |
| Low |
Analysts expect AAOI to return to profit, with revenue growing. However, they disagree widely on these estimates.
FORTY Forward outlook
There aren't enough analyst estimates for FORTY to show an outlook.
AAOI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $2.98 | — |
| Q3 2026 | -$0.42 | +$3.02 |
| Q2 2026 | -$0.77 | +$2.81 |
| Q1 2026 | -$0.65 | +$3.43 |
| Q4 2025 | -$0.64 | +$3.86 |
| Q3 2025 | -$3.44 | -$1.41 |
| Q2 2025 | -$3.58 | -$1.70 |
| Q1 2025 | -$4.08 | -$2.29 |
| Q4 2024 | -$4.50 | -$2.75 |
AAOI is still losing money, but far less than before: $0.42 per share over the past year, against $4.50 at its worst in late 2024.
FORTY Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | $39.70 | +699% |
| Q1 2026 | $39.18 | +651% |
| Q4 2025 | $38.16 | +650% |
| Q3 2025 | $4.19 | -13% |
| Q2 2025 | $4.97 | +15% |
| Q1 2025 | $5.22 | +24% |
| Q4 2024 | $5.09 | +23% |
| Q3 2024 | $4.82 | +17% |
FORTY has the edge over AAOI on earnings quality, reporting a profit while its opponent remains loss making.
AAOI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $269.9M | +127% |
| Q2 2026 | $191.9M | +86% |
| Q1 2026 | $151.1M | +51% |
| Q4 2025 | $134.3M | +34% |
| Q3 2025 | $118.6M | +82% |
| Q2 2025 | $103M | +138% |
| Q1 2025 | $99.9M | +146% |
| Q4 2024 | $100.3M | +66% |
AAOI has the edge over FORTY on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | -0.5% | +15 points |
| Q2 2026 | -13% | +2.6 points |
| Q1 2026 | -8.6% | +0.3 points |
| Q4 2025 | -8.6% | -2.1 points |
| Q3 2025 | -15% | +10 points |
| Q2 2025 | -16% | +45 points |
| Q1 2025 | -8.9% | +44 points |
| Q4 2024 | -6.5% | +1 points |
AAOI's operating margin was −0.5% last quarter, up 15 points from the same quarter a year ago, near the top of its range since 2019.
FORTY Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $782.4M | +3% |
| Q1 2026 | $738.3M | +20% |
| Q4 2025 | $712.8M | +28% |
| Q3 2025 | $699.9M | 0% |
| Q2 2025 | $759.3M | +14% |
| Q1 2025 | $616.2M | -12% |
| Q4 2024 | $558.2M | -13% |
| Q3 2024 | $699.9M | +6.9% |
FORTY's revenue has picked up after three years of holding roughly level: $782M last quarter, up 3% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 9.2% | 0 points |
| Q1 2026 | 11% | +3.1 points |
| Q4 2025 | 4.6% | -4 points |
| Q3 2025 | 7.8% | -2.3 points |
| Q2 2025 | 9.1% | -0.6 points |
| Q1 2025 | 8% | -1 points |
| Q4 2024 | 8.6% | -0.8 points |
| Q3 2024 | 10% | +1.3 points |
FORTY has the edge over AAOI on profitability, with a higher operating margin.
AAOI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | -$369.9M | -$291.2M |
| Q2 2026 | -$265.3M | -$174.4M |
| Q1 2026 | -$143.6M | -$64.3M |
| Q4 2025 | -$104.6M | -$51.6M |
| Q3 2025 | -$78.7M | -$58M |
| Q2 2025 | -$91M | -$86M |
| Q1 2025 | -$79.3M | -$45.1M |
| Q4 2024 | -$53M | -$48.4M |
AAOI has burned cash in almost every quarter: −$883M over the past year, against −$302M the year before.
FORTY Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $0 | $0 |
| Q1 2026 | $0 | $0 |
| Q4 2025 | $0 | $0 |
| Q3 2025 | $0 | $0 |
| Q2 2025 | $0 | $0 |
| Q1 2025 | $0 | $0 |
| Q4 2024 | $0 | $0 |
| Q3 2024 | $0 | $0 |
FORTY's free cash flow has been positive every quarter for seven years: $0 over the past year, against $0 the year before.
AAOI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +7.7% | +6.3M shares |
| 1 year | +39% | +24.5M shares |
| 3 years | +168% | +55.1M shares |
| 5 years | +224% | +60.7M shares |
| Available history | +340% | +67.9M shares |
AAOI has 88M diluted shares, up 39% from a year ago.
FORTY Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | +2.9K shares |
| 1 year | +0.5% | +81.1K shares |
| 3 years | +2.3% | +358K shares |
| 5 years | +3.1% | +476K shares |
| Available history | +3.6% | +549K shares |
FORTY has the edge over AAOI on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | — |
| Q3 2024 | — |
FORTY hasn't bought back shares in the past year.
AAOI Net Leverage
AAOI's operating earnings (EBITDA) were negative over the past year, so its debt can't be measured against them.
FORTY Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | -0.7x | Net Cash |
| Q1 2026 | -1.8x | Net Cash |
| Q4 2025 | -3.1x | Net Cash |
| Q3 2025 | 0.9x | Very low |
| Q2 2025 | 1.2x | Healthy |
| Q1 2025 | 0.7x | Very low |
| Q4 2024 | 0.7x | Very low |
| Q3 2024 | 0.7x | Very low |
FORTY has more cash than debt.
AAOI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 35.1 | Neutral |
| Stochastic | 4.8 | Oversold |
AAOI's weekly RSI is 35 (neutral) and its Stochastic is 5 (oversold).
FORTY Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 50.7 | Neutral |
| Stochastic | 52.6 | Neutral |
FORTY's weekly RSI is 51 (neutral) and its Stochastic is 53 (neutral).
AAOI PE vs Technology Sector
AAOI has no meaningful PE right now: it lost money over the past year.
FORTY PE vs Technology Sector
| Metric | FORTY | Sector median | Relative |
|---|---|---|---|
| PE | 3.1x | 28x | 89% below |
| PE % | 6 | 35 | 29 pts below |
FORTY is trading at 3.0x earnings, a 89% discount to the Technology sector's median of 28x.
AAOI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $80.2 | 34% below |
| 20 week MA | $100.6 | 47% below |
| 50 week MA | $100.3 | 47% below |
| 100 week MA | $62.3 | 15% below |
| 200 week MA | $36.9 | 43% above |
AAOI has fallen below most of its moving averages, though it's still 43% above its 200-week average.
FORTY Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $116.4 | 3.9% above |
| 20 week MA | $115.5 | 4.8% above |
| 50 week MA | $130.7 | 7.4% below |
| 100 week MA | $122.0 | 0.8% below |
| 200 week MA | $97.6 | 24% above |
FORTY has the edge over AAOI on trend strength, trading above more of its moving averages.
AAOI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $11.5 | $8.77 | -24% |
| 2021 | $8.77 | $5.64 | -36% |
| 2022 | $5.64 | $1.95 | -65% |
| 2023 | $1.95 | $19.3 | +891% |
| 2024 | $19.3 | $37.7 | +95% |
| 2025 | $37.7 | $37.2 | -1.5% |
| 2026 YTD | $37.2 | $52.9 | +42% |
AAOI has the edge over FORTY on returns for 2026, with the stronger performance.
FORTY Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $68.2 | $81.8 | +20% |
| 2021 | $81.8 | $119.9 | +47% |
| 2022 | $119.9 | $75.0 | -37% |
| 2023 | $75.0 | $65.3 | -13% |
| 2024 | $65.3 | $93.4 | +43% |
| 2025 | $93.4 | $190.6 | +104% |
| 2026 YTD | $190.6 | $121.0 | -37% |
FORTY is down 37% so far in 2026, after finishing higher in four of the previous six years.