Alpha and Omega Semiconductor Limited Common Shares (AOSL)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a student of Graham and Buffett, I start with the business. Alpha and Omega designs power semiconductors—MOSFETs and related discretes—for computing, consumer, communication, and industrial markets. It is a cyclical, capital-intensive niche with many rivals and limited evidence of a durable competitive moat from the figures provided. The filed numbers show the stress. In fiscal 2026, ended 2026-06-30, revenue was $678.9M, down from $696.2M in fiscal 2025, and net income was a loss of $42.3M, or diluted EPS of -$1.41. That is better than the fiscal 2025 loss of $97.0M, or -$3.30, but still a loss. Trailing free cash flow was -$68.6M, a FairStock FCF yield of -8.8%. The balance sheet looks relatively conservative: debt-to-equity of 0.04 and an Altman Z-Score of 4.07. But returns are negative—ROE -5.22%, ROCE -2.68%—so book value is not currently earning its keep. At the close on 2026-10-13, the shares were $25.86, with a market cap of $782.5M. The FairStock P/B is 0.98, slightly below book, but the P/E is negative and EV/EBITDA is 28.12. The FairStock Score is 33/100. FairStock classifies it as a TURNAROUND, reflecting a loss in the latest year after earlier profits. This is a speculative turnaround, not a Buffett-style bargain. Low debt and a narrowed loss help, but negative cash flow, weak returns, and no clear moat mean I would want evidence of durable profit recovery before paying up.

In plain English: Alpha and Omega makes power chips used in electronics like computers, devices, and industrial equipment. The business is currently losing money and using cash, though it has little debt and its yearly loss narrowed from the year before. At $25.86, the shares look cheap compared with the company's accounting net assets, but expensive compared with its current losses and cash use.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer