AAOI (Applied Optoelectronics) ROCE %: -4.46% (As of Mar. 2026)

What is Applied Optoelectronics ROCE %?

Applied Optoelectronics AAOI -2.23% 46 ROCE % is -4.46% as of Mar. 2026. GuruFocus rates AAOI with a GF Score™ of 46/100 and a GF Value™ of $20.27 (Significantly Overvalued). The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Applied Optoelectronics's annualized ROCE % for the quarter that ended in Mar. 2026 was -4.46%.

Applied Optoelectronics (NAS:AAOI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Applied Optoelectronics ROCE % Related Terms

Applied Optoelectronics ROCE % Historical Data

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The historical data trend for Applied Optoelectronics's ROCE % can be seen below:

* 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 ROCE % Chart

Applied Optoelectronics Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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-13.42

-19.53

-16.48

-53.48

-6.71

Applied Optoelectronics Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															-7.93	-6.41	-10.41	-4.71	-4.46

46GF Score

Applied Optoelectronics Inc AAOI

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Applied Optoelectronics ROCE % Calculation

Applied Optoelectronics's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	-43.207	/	( ( (547.032 - 170.069)	+	(1168.423 - 257.283) )	/ 2 )
	=	-43.207	/	( (376.963	+	911.14)	/ 2 )
	=	-43.207	/	644.0515
	=	-6.71 %

Applied Optoelectronics's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	-49.476	/	( ( (1168.423 - 257.283)	+	(1565.879 - 259.428) )	/ 2 )
	=	-49.476	/	( ( 911.14	+	1306.451 )	/ 2 )
	=	-49.476	/	1108.7955
	=	-4.46 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -4.46% mean?

Applied Optoelectronics (AAOI) has a ROCE % of -4.46% as of Mar. 2026.

Is Applied Optoelectronics' ROCE % too high?

Applied Optoelectronics' current ROCE % is -4.46%. 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' ROCE % compare to VIAV and ZBRA?

Applied Optoelectronics' ROCE % of -4.46% can be compared against companies in the Hardware industry. The industry median ROCE % is 5.83. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Hardware company?

The median ROCE % among Hardware companies is 5.83, based on 2,445 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 5.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Optoelectronics's current ROCE % is -4.46%. 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 $135.69 — trading 569.4% above its estimated fair value. The current ROCE % is -4.46%. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Applied Optoelectronics (AAOI), the current ROCE % is -4.46% 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 $135.69 is trading 569.4% above its estimated GF Value™ of $20.27. GuruFocus considers Applied Optoelectronics to be Significantly Overvalued.

Key valuation signals for AAOI:

ROCE %: -4.46%
GF Value™: $20.27 vs. price of $135.69 (569.4% above fair value)
GF Score™: 46/100 with 7 warning signs

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 Business Description

Industry Technology Hardware

Comparable Companies VIAV ZBRA VSAT ONDS BDC EXTR VISN DGII HLIT ADTN CSCO SHSE:601138 SZSE:300308 SZSE:300502 CIEN OHEL:NOKIA MSI LITE HPE SZSE:300394

Other Exchanges 1AAOI:Italy 0HGV:UK A59:Germany

Address 13139 Jess Pirtle Boulevard, Sugar Land, TX, USA, 77478

Website https://www.ao-inc.com

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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$135.69

Price

$20.27

GF Value

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