One-glance verdict
Overvalued
$12.06 our estimate vs market $25.33
Wall Street consensus: $50.75 (320.8% higher than our fair-value estimate)
110% above our estimate, beyond the bull case
Fundamentals snapshot
American Superconductor Corporation
AMSC · NMS · Industrials · Specialty Industrial Machinery
Current price
$25.33
52-week range
$22.16 - $60.18
Market cap
$1.23B
Balance sheet
Healthy
2.46x Stretched
Net cash $162.69M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 29.2% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Forward P/E (19.1x) is higher than trailing (8.6x) - earnings are expected to drop.
- Risk Insider ownership is only 3.4% (peer median: 14.4%).
What this company does
American Superconductor Corporation
American Superconductor Corporation (AMSC) sells systems that help manage and distribute large amounts of electricity, especially for renewable energy like wind farms, and also provides designs for wind turbines. Their money mainly comes from selling these electrical management solutions and licensing their wind turbine designs. This matters because as the world uses more clean energy, AMSC's technology is important for making sure the power grid can handle it.
How the company got here
American Superconductor Corporation (AMSC) was founded in 1987, initially focusing on developing high-temperature superconductor materials. The company's early vision was to revolutionize power transmission with these advanced materials. Over time, AMSC shifted its strategy to focus on more commercially viable applications of its power technologies, particularly in the renewable energy and grid infrastructure sectors. This evolution involved significant investment in research and development, leading to the creation of specialized solutions for managing and distributing electrical power.
What it actually does
AMSC provides advanced electrical systems and solutions that help manage and deliver power more reliably and efficiently. Think of them as the sophisticated engineers behind the scenes, ensuring that electricity flows smoothly from where it's generated to where it's used, especially in complex environments like large power grids and wind farms. Their products help prevent power outages, improve the quality of electricity, and integrate renewable energy sources into the existing power infrastructure.
Grid
The Grid segment focuses on making electrical grids (the network that delivers electricity) more resilient and efficient. They offer products and services to electric utilities and renewable energy developers to help manage power flow, improve power quality, and connect new energy sources like wind and solar farms. For example, their D-VAR systems help control voltage fluctuations, ensuring a stable power supply, much like a thermostat regulates room temperature. This segment also provides specialized systems for the maritime industry to reduce a ship's magnetic signature, making them harder to detect.
Wind
In the Wind segment, AMSC designs the core electrical systems for wind turbines, particularly those that are megawatt-scale (meaning they generate a million watts or more of power). They then license these designs to wind turbine manufacturers around the world. AMSC also supplies critical components like power electronics and control systems, which are the 'brains' and 'muscles' of the wind turbine, ensuring it operates efficiently and safely. This business is about enabling the production of more wind energy by providing the technology that makes large wind turbines work.
What management is betting on now
AMSC's current strategy centers on expanding its role in the global transition to renewable energy and modernizing electrical grids. Management is focused on growing its Grid segment by providing solutions that enhance grid stability and reliability, especially as more intermittent renewable sources like solar and wind are added. They are also leveraging their expertise in wind turbine technology to support the continued development and deployment of wind power globally. The company aims to capitalize on the increasing demand for clean energy and robust power infrastructure.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$5.35M
FY2025 Q4
$5.25M
FY2026 Q1
$3.31M
FY2026 Q2
$5.09M
FY2026 Q3
$2.36M
FY2026 Q4
$7.50M
FY2027 Q1
$5.58M
FY2027 Q2
$34.35M
Revenue
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Net income
$3.00M
Diluted EPS
0.06
Operating cash flow
$48.72M
Free cash flow
$34.35M
Fetching…
Sources
Revenue
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Net income
$9.49M
Diluted EPS
0.20
Operating cash flow
$16.01M
Free cash flow
$5.58M
Fetching…
Sources
Revenue
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Net income
$4.53M
Diluted EPS
0.15
Operating cash flow
$9.29M
Free cash flow
$7.50M
Fetching…
Sources
Revenue
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Net income
$117.81M
Diluted EPS
2.62
Operating cash flow
$3.25M
Free cash flow
$2.36M
Fetching…
Sources
Revenue
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Net income
$4.75M
Diluted EPS
0.11
Operating cash flow
$6.49M
Free cash flow
$5.09M
Fetching…
Sources
Revenue
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Net income
$6.72M
Diluted EPS
0.17
Operating cash flow
$4.12M
Free cash flow
$3.31M
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Sources
Revenue
—
Net income
$1.21M
Diluted EPS
0.04
Operating cash flow
$6.29M
Free cash flow
$5.25M
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Sources
Revenue
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Net income
$2.46M
Diluted EPS
0.06
Operating cash flow
$5.87M
Free cash flow
$5.35M
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Sources
Is it cheap or expensive?
Fair value $12.06 vs current price $25.33
Wall Street consensus is the average analyst price target: $50.75 (320.8% higher than our fair-value estimate).
Our most-likely fair value is $12.06 a share — about 52.4% below today's price of $25.33, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $162.7M - more cash than debt. Interest coverage 2.5x.
Net debt
$-162.69M
Interest coverage
2.46x
American Superconductor Corporation's profit covers its interest bill about 2.5 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
AMSC
BASELINE
American Superconductor Corporation
Total debt $7.22M Interest coverage 2.46x This is the baseline the peer rows are being compared against.
Total debt $199.72M Interest coverage 3.65x +48% vs AMSC Carries about 1.5x more debt cushion than AMSC.
Total debt $64.89M Interest coverage 42.31x +1,622% vs AMSC Carries about 17.2x more debt cushion than AMSC.
Total debt $247.22M Interest coverage 0.56x -77% vs AMSC Carries about 4.4x less debt cushion than AMSC.
Total debt $3.52M Interest coverage 10.35x +321% vs AMSC Carries about 4.2x more debt cushion than AMSC.
Total debt $2.52M Interest coverage 13.89x +465% vs AMSC Carries about 5.7x more debt cushion than AMSC.
What you should know
The case for and against AMSC
3 Rewards
2 Risks
Rewards
-
Returns 29.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 8.6x P/E vs peer median 30.3x (71.5% cheaper).
Risks
-
Forward P/E (19.1x) is higher than trailing (8.6x) - earnings are expected to drop.
-
Insider ownership is only 3.4% (peer median: 14.4%).
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)
8.65x
Forward P/E
19.12x
P/B
2.11x
P/S
3.52x
EV/EBITDA
40.80x
PEG ratio
0.74x
Profitability
How much profit each dollar creates
Gross margin
28.4%
Operating margin
4.3%
Net margin
38.6%
ROE
29.2%
ROA
1.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.38x
Quick ratio
1.59x
Total debt
$7.22M
Total cash
$169.92M
Growth
How the business has been compounding
Revenue TTM
$45.52M
Revenue 5Y CAGR
90.2%
EPS TTM
2.93
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$77.27M
Free CF TTM
$18.26M
FCF margin
40.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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