One-glance verdict
Within fair range
$41.48 our estimate vs market $37.56
Wall Street consensus: $47.00 (13.3% higher than our fair-value estimate)
9% below our estimate
Fundamentals snapshot
Alpha and Omega Semiconductor Limited
AOSL · NMS · Technology · Semiconductors
Current price
$37.56
52-week range
$17.01 - $54.34
Market cap
$1.12B
Balance sheet
Healthy
-10.78x Concerning
Net cash $161.86M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 6/10 years.
- Risk Operating margin compressed from 13.1% to -8.6% over 3 years.
- Risk Return on equity was -12.6% last year — the company lost money on shareholders' equity.
What this company does
Alpha and Omega Semiconductor Limited
Alpha and Omega Semiconductor makes essential electronic parts, called power semiconductors, that manage the flow and conversion of electricity inside many products you use daily. The company sells these tiny components to manufacturers of everything from laptops and TVs to the large data centers that power the internet and electric cars. This means its business depends on the global demand for new electronics across the consumer, computing, communication, and industrial sectors.
How the company got here
Founded in 2000 by a group of semiconductor industry veterans, Alpha and Omega Semiconductor (AOSL) started with a focus on improving how electronic devices manage power. A key decision in its history was to not be purely "fabless" (a company that only designs chips and outsources manufacturing), but to also own some of its manufacturing facilities, giving it more control over production and technology. The company went public with an initial public offering (IPO) in 2010, which provided the capital to expand. Over time, AOSL has shifted its focus from primarily serving the consumer electronics market to also creating higher-value products for the industrial, automotive, and computing sectors, including the growing field of artificial intelligence (AI).
What it actually does
Alpha and Omega Semiconductor makes tiny electronic components called power semiconductors, which are essential for managing electricity in almost every modern electronic device. Think of them as the traffic cops for electrical currents, making sure the right amount of power goes to the right place efficiently and safely. You would find these components inside your laptop, smartphone, TV, and gaming console, as well as in the data centers that power the internet, electric vehicles, and industrial equipment. Their products help make electronics more energy-efficient, which is why they are in high-volume demand.
Power Discretes
This is the company's largest business area, making up a majority of its revenue. It includes fundamental components like MOSFETs (a type of transistor that acts like a switch or amplifier for electrical signals) and IGBTs (another kind of transistor used for high-power applications). These are the individual workhorse components that manufacturers of electronics like PCs, servers, and power supplies buy to manage power flow in their products. Customers for these products are typically large manufacturers who build the final electronic devices you use every day.
Power ICs
This segment, which accounts for a significant portion of the company's sales, involves creating Power Integrated Circuits (ICs). Unlike the single-function discrete components, Power ICs are more complex chips that combine multiple power management functions into one package, acting like a small control center for power. These are used in devices like flat-panel TVs, graphics cards, and networking equipment to handle more complicated power regulation tasks. The customers are electronics manufacturers who need a more integrated and compact solution than using several individual components.
What management is betting on now
The company is strategically focusing on more profitable and stable markets like industrial equipment and automotive electronics, reducing its reliance on the more volatile consumer electronics sector. A major priority is expanding its presence in high-performance applications, especially for artificial intelligence (AI) data centers and electric vehicles, which require advanced power management. To achieve this, they are increasing their investment in research and development (R&D) to create more innovative and efficient products, such as those using new materials like silicon carbide. Management is also aiming to provide more complete "total solutions" to customers, bundling multiple components together to solve a customer's entire power management problem.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-210.00K
FY2025 Q1
$4.10M
FY2025 Q2
$6.60M
FY2025 Q3
$-1.06M
FY2025 Q4
$-17.16M
FY2026 Q1
$420.00K
FY2026 Q2
$-23.09M
FY2026 Q3
$-20.47M
Revenue
$163.79M
Net income
$-13.79M
Diluted EPS
-0.46
Operating cash flow
$-8.34M
Free cash flow
$-20.47M
Fetching…
Sources
Revenue
$162.26M
Net income
$-13.29M
Diluted EPS
-0.45
Operating cash flow
$-8.12M
Free cash flow
$-23.09M
Fetching…
Sources
Revenue
$182.50M
Net income
$-2.12M
Diluted EPS
-0.07
Operating cash flow
$10.19M
Free cash flow
$420.00K
Fetching…
Sources
Revenue
$176.48M
Net income
$-77.06M
Diluted EPS
-2.61
Operating cash flow
$-2.83M
Free cash flow
$-17.16M
Fetching…
Sources
Revenue
$164.63M
Net income
$-10.81M
Diluted EPS
-0.37
Operating cash flow
$7.37M
Free cash flow
$-1.06M
Fetching…
Sources
Revenue
$173.16M
Net income
$-6.61M
Diluted EPS
-0.23
Operating cash flow
$14.11M
Free cash flow
$6.60M
Fetching…
Sources
Revenue
$181.89M
Net income
$-2.50M
Diluted EPS
-0.09
Operating cash flow
$11.02M
Free cash flow
$4.10M
Fetching…
Sources
Revenue
$161.30M
Net income
$-2.73M
Diluted EPS
-0.09
Operating cash flow
$7.12M
Free cash flow
$-210.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.48 vs current price $37.56
Wall Street consensus is the average analyst price target: $47.00 (13.3% higher than our fair-value estimate).
Our most-likely fair value is $41.48 a share — about 10.4% away from today's price of $37.56, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $161.9M - more cash than debt. Interest coverage -10.8x.
Net debt
$-161.86M
Interest coverage
-10.78x
Alpha and Omega Semiconductor Limited's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
AOSL
BASELINE
Alpha and Omega Semiconductor Limited
Total debt $29.14M Interest coverage -10.78x This is the baseline the peer rows are being compared against.
Total debt $104.88M Interest coverage 13.12x This peer still has a real interest-payment cushion, while AOSL does not.
Total debt $1.10B Interest coverage 1.47x This peer still has a real interest-payment cushion, while AOSL does not.
Total debt $305.91M Interest coverage 1.13x This peer still has a real interest-payment cushion, while AOSL does not.
Total debt $517.62M Interest coverage 8.60x This peer still has a real interest-payment cushion, while AOSL does not.
What you should know
The case for and against AOSL
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 6/10 years.
Risks
-
Operating margin compressed from 13.1% to -8.6% over 3 years.
-
Return on equity was -12.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-78.25x
P/B
1.40x
P/S
1.64x
EV/EBITDA
69.30x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
22.4%
Operating margin
-8.6%
Net margin
-15.5%
ROE
-12.6%
ROA
-2.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
3.32x
Quick ratio
1.81x
Total debt
$29.14M
Total cash
$191.00M
Growth
How the business has been compounding
Revenue TTM
$685.04M
Revenue 5Y CAGR
1.5%
EPS TTM
-3.60
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-9.11M
Free CF TTM
$-7.51M
FCF margin
-1.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—