American Superconductor (AMSC) AI Stock Analysis

• Market Cap: $2.54B
• Dividend Yield: N/A
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 142.5
• Beta (1Y): 2.24
• Revenue Growth: 63.73%
• EPS Growth: N/A
• Country: US
• Employees: 569
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.11
• Shares Outstanding: 45,160,927
• 10 Day Avg. Volume: 961,013
• 30 Day Avg. Volume: 1,083,268
• PEG Ratio: -0.78
• Price to Book (P/B): 3.40
• Price to Sales (P/S): 3.01
• P/FCF Ratio: 25.94
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 4.91
• Enterprise Value/Gross Profit: 16.90
• Enterprise Value/Ebitda: 71.09
• 1Y Price Target: $67.00
• Price Target Upside: 19.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $70.00 ▲(24.36% Upside)

American Superconductor's overall stock score of 71 reflects a strong financial performance and positive earnings call sentiment, indicating a promising growth trajectory. The technical analysis supports a stable outlook, although the high P/E ratio suggests potential overvaluation concerns. Continued operational improvements and strategic cash management will be crucial for sustaining growth.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, positioning AMSC for continued expansion in the renewable energy sector.

Strong Cash Position

A robust cash position provides AMSC with financial flexibility to invest in growth opportunities and weather economic uncertainties, supporting long-term stability.

Profitability Achieved

Consistent profitability reflects operational efficiency and effective cost management, enhancing the company's financial health and investor confidence.

Negative Factors

Increased Operating Expenses

Rising operating expenses could pressure margins and profitability if not managed carefully, potentially impacting long-term financial performance.

EBIT Margin Challenges

Negative EBIT margins suggest that AMSC needs to improve operational efficiency to enhance profitability and sustain long-term growth.

Potential Growth Sustainability Issues

Reliance on one-time events for growth could lead to volatility in financial performance, challenging AMSC's ability to maintain consistent growth.

American Superconductor Business Overview & Revenue Model

Company Description

American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The company operates in two segments, Grid and Wind. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand; and engineering planning services. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; resilient electric grid systems, resilient electric grid systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship's magnetic signature; and in board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment's design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. The company was incorporated in 1987 and is headquartered in Ayer, Massachusetts.

How the Company Makes Money

AMSC generates revenue through multiple streams, primarily from the sale of its advanced power systems and superconducting wire. The company earns significant income from contracts with utility companies and OEMs (Original Equipment Manufacturers) that integrate AMSC's technology into their products. Additionally, AMSC benefits from government contracts and grants aimed at promoting renewable energy technologies. Strategic partnerships with major players in the energy sector also contribute to revenue, as these collaborations often involve joint projects and shared resources. The company's focus on innovative solutions in the growing renewable energy market positions it for potential growth, especially as demand for clean energy solutions continues to rise.

American Superconductor Financial Statement Overview

Summary

American Superconductor is demonstrating a promising financial turnaround. The income statement shows significant revenue growth and a shift to profitability, although EBIT margins require further improvement. The balance sheet is robust, with low leverage and a solid equity base, providing stability. Cash flow generation is strong, supporting operational and strategic initiatives. Continued focus on operational efficiency and cash management will be key to sustaining this upward trajectory.

Income Statement

American Superconductor has shown a significant improvement in its income statement metrics. The gross profit margin has increased over the years, indicating better cost management. The company reported a positive net profit margin for the latest year, a substantial shift from previous losses, suggesting strong operational improvements. Revenue growth has been robust, with a notable increase from 2024 to 2025, reflecting growing business momentum. However, EBIT margins remain negative, indicating ongoing challenges in achieving operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a healthy equity ratio, indicating a strong equity base. The debt-to-equity ratio is low, showing minimal leverage and reducing financial risk. Return on equity has turned positive, aligning with the net income improvements. However, the company needs to maintain this trajectory to ensure sustained profitability and return on investment for shareholders.

Cash Flow

Cash flow metrics are strong, with a substantial increase in free cash flow, supported by improved operating cash flow. The free cash flow to net income ratio is favorable, indicating efficient cash conversion. The company has achieved a positive operating cash flow to net income ratio, suggesting effective cash management. This positive cash flow trend provides a solid foundation for future growth and investment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	254.89M	222.82M	145.64M	105.98M	108.44M	87.13M
Gross Profit	74.12M	61.85M	35.28M	8.52M	13.49M	17.45M
EBITDA	17.62M	12.14M	-1.97M	-26.53M	-21.60M	-14.75M
Net Income	15.28M	6.03M	-11.11M	-35.04M	-19.19M	-22.68M
Balance Sheet
Total Assets	452.85M	310.52M	232.77M	175.56M	173.89M	168.87M
Cash, Cash Equivalents and Short-Term Investments	207.89M	79.49M	90.52M	23.36M	40.58M	72.95M
Total Debt	3.76M	3.37M	2.71M	3.08M	3.80M	3.86M
Total Liabilities	119.73M	113.41M	88.20M	93.76M	64.50M	52.27M
Stockholders Equity	333.12M	197.11M	144.57M	81.80M	109.39M	116.59M
Cash Flow
Free Cash Flow	26.04M	25.87M	1.20M	-23.72M	-19.91M	-10.45M
Operating Cash Flow	29.00M	28.29M	2.14M	-22.48M	-18.98M	-8.68M
Investing Cash Flow	-35.92M	-35.21M	-961.00K	-1.52M	-7.16M	2.47M
Financing Cash Flow	124.73M	8.00K	65.44M	162.00K	142.00K	50.83M

American Superconductor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 56.29
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMSC, the sentiment is Neutral. The current price of 56.29 is below the 20-day moving average (MA) of 59.93, below the 50-day MA of 57.62, and above the 200-day MA of 37.06, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMSC.

American Superconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAC	74 Outperform	$2.14B	23.74	22.47%	0.10%	4.65%	8.81%
SXI	73 Outperform	$2.78B	52.49	7.72%	0.52%	18.51%	-28.69%
CXT	72 Outperform	$3.62B	24.15	13.98%	1.05%	10.28%	-16.81%
AMSC	71 Outperform	$2.54B	142.54	6.41%	―	63.73%	―
KAI	66 Neutral	$3.26B	32.00	11.25%	0.49%	-0.96%	-11.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PSIX	62 Neutral	$1.94B	17.47	138.29%	―	40.10%	147.12%

American Superconductor Corporate Events

AMSC Reports Record Revenue and Positive Outlook

The recent earnings call for American Superconductor Corporation (AMSC) was marked by a strong positive sentiment, driven by record revenue growth and consistent profitability. The company showcased its diverse revenue streams and a healthy backlog, contributing to an optimistic outlook despite increased operating expenses and reliance on key customer orders.

AMSC Reports Strong Q1 FY25 Financial Performance

American Superconductor Corporation (AMSC) is a prominent provider of megawatt-scale power resiliency solutions, enhancing grid reliability and naval fleet capabilities, with operations spanning across multiple continents.