The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Applied Optoelectronics Pretax Margin % Related Terms
Applied Optoelectronics Pretax Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AAOI vs VIAV, ZBRA, VSAT: Pretax Margin % Comparison
For the Communication Equipment subindustry, Applied Optoelectronics's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Optoelectronics Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Applied Optoelectronics's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Applied Optoelectronics's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Applied Optoelectronics (AAOI) has a Pretax Margin % of -8.75% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Applied Optoelectronics and its competitors. According to the industry distribution chart, Applied Optoelectronics ranks #1985 out of 2475 companies in the Hardware industry, placing it in the top 80.2%.
Is Applied Optoelectronics' Pretax Margin % too high?
Applied Optoelectronics' current Pretax Margin % is -8.75%. Based on the distribution chart, Applied Optoelectronics ranks #1985 out of 2475 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Applied Optoelectronics has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Optoelectronics' Pretax Margin % compare to VIAV and ZBRA?
According to the Hardware industry distribution chart, Applied Optoelectronics ranks #1985 out of 2475 companies for Pretax Margin %. This places Applied Optoelectronics in the lower half of its industry. The industry median Pretax Margin % is 3.58. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,475 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Applied Optoelectronics and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Optoelectronics's current Pretax Margin % is -8.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Optoelectronics stock overvalued right now?
Based on GuruFocus' analysis, Applied Optoelectronics (AAOI) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.27, compared to a current price of $114.89 — trading 466.8% above its estimated fair value. The current Pretax Margin % is -8.75%. Applied Optoelectronics' overall GF Score™ is 46/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Applied Optoelectronics (AAOI), the current Pretax Margin % is -8.75% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Optoelectronics (AAOI) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Optoelectronics stock appears to be overvalued.
The current stock price of $114.89 is trading 466.8% above its estimated GF Value™ of $20.27.
GuruFocus considers Applied Optoelectronics to be Significantly Overvalued.
Key valuation signals for AAOI:
Pretax Margin %: -8.75%
GF Value™: $20.27 vs. price of $114.89 (466.8% above fair value)
No single metric tells the full story. See the AAOI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Optoelectronics Inc is a provider of fiber-optic networking products, for four networking end-markets; internet data center, CATV, telecom, and FTTH. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies, and modules to meet turn-key equipment. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance. The Company has manufacturing and research and development facilities located in the U.S., Taiwan, and China.
46GF Score
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