One-glance verdict
Overvalued
$11.59 our estimate vs market $30.01
Wall Street consensus: $61.75 (432.8% higher than our fair-value estimate)
159% above our estimate, beyond the bull case
Fundamentals snapshot
American Superconductor Corporation
AMSC · NMS · Industrials · Specialty Industrial Machinery
Current price
$30.01
52-week range
$24.87 - $70.49
Market cap
$1.45B
Balance sheet
Healthy
2.46x Stretched
Net cash $139.81M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 30.2% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Forward P/E (22.1x) is higher than trailing (9.7x) - 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 makes and sells high-tech electrical systems that help stabilize the power grid and protect U.S. Navy ships. Most of its revenue (the money a company makes from sales) comes from these grid and navy projects, with a smaller part coming from licensing its wind turbine designs to other manufacturers. This matters because a stable electric grid is essential for handling new energy sources like wind and solar, and a modern navy requires advanced electrical systems to operate effectively.
How the company got here
American Superconductor, or AMSC, was founded in 1987 by a professor and scientists from MIT. Initially focused on developing superconductor wire, which can carry more electricity than copper, the company has grown by acquiring other energy technology firms, including a wind power company. A key event was in 2011 when a major customer stole its software, causing significant financial distress. Since then, the company has rebuilt and expanded, focusing on technologies that make the electrical grid more reliable and resilient. Today, it provides a range of power solutions for utilities, renewable energy projects, and even the U.S. Navy.
What it actually does
Think of AMSC as a company that provides the brains and muscle for the electrical grid, the network of power lines that brings electricity to our homes and businesses. They create complex systems that manage the flow of electricity, ensuring it's stable and reliable, especially as more renewable energy sources like wind and solar are added. Their products help prevent power outages and protect sensitive equipment for large industrial customers and the military. They also design the electronic control systems that help wind turbines operate efficiently.
Grid
This is the company's largest business segment, making up the majority of its sales. It provides a variety of products and services to electric utilities and large industrial companies to help them manage their power better. For example, they sell systems that regulate voltage (the pressure of the electricity) to prevent surges or dips that can damage equipment. This segment also provides specialized power systems for the U.S. Navy to protect ships. Customers in this area are typically large organizations that need a very stable and reliable power supply for their operations.
Wind
This part of the company focuses on the wind energy industry and is a smaller but growing slice of the business. Instead of building the giant wind turbines themselves, AMSC designs and sells the sophisticated electronic systems and controls that go inside them. These systems are like the turbine's nervous system, managing its operation to produce electricity as efficiently as possible. They license these designs and sell the electronic components to companies that manufacture the final wind turbines.
What management is betting on now
The company's leadership is focused on the increasing need to modernize the world's aging electrical grids. They are betting that the rise of power-hungry industries like data centers for artificial intelligence (AI), along with the growth of renewable energy, will create more demand for their grid-stabilizing products. A key part of their strategy is to provide complete, engineered solutions rather than just individual parts, which can be more valuable to customers. They are also expanding their business internationally, particularly in Latin America and Asia, to capitalize on global demand for reliable power.
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 Q2
$18.93M
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
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
—
Net income
$4.53M
Diluted EPS
0.15
Operating cash flow
$9.29M
Free cash flow
$7.50M
Fetching…
Sources
Revenue
—
Net income
$117.81M
Diluted EPS
2.62
Operating cash flow
$3.25M
Free cash flow
$2.36M
Fetching…
Sources
Revenue
—
Net income
$4.75M
Diluted EPS
0.11
Operating cash flow
$6.49M
Free cash flow
$5.09M
Fetching…
Sources
Revenue
—
Net income
$6.72M
Diluted EPS
0.17
Operating cash flow
$4.12M
Free cash flow
$3.31M
Fetching…
Sources
Revenue
—
Net income
$1.21M
Diluted EPS
0.04
Operating cash flow
$6.29M
Free cash flow
$5.25M
Fetching…
Sources
Revenue
—
Net income
$2.46M
Diluted EPS
0.06
Operating cash flow
$5.87M
Free cash flow
$5.35M
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Sources
Revenue
—
Net income
$4.89M
Diluted EPS
0.13
Operating cash flow
$19.52M
Free cash flow
$18.93M
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Sources
Is it cheap or expensive?
Fair value $11.59 vs current price $30.01
Wall Street consensus is the average analyst price target: $61.75 (432.8% higher than our fair-value estimate).
Our most-likely fair value is $11.59 a share — about 61.4% below today's price of $30.01, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $139.8M - more cash than debt. Interest coverage 2.5x.
Net debt
$-139.81M
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 $3.90M Interest coverage 2.46x This is the baseline the peer rows are being compared against.
Total debt $197.63M Interest coverage 3.65x +48% vs AMSC Carries about 1.5x more debt cushion than AMSC.
Total debt $52.07M Interest coverage 42.31x +1,622% vs AMSC Carries about 17.2x more debt cushion than AMSC.
Total debt $322.29M Interest coverage 0.56x -77% vs AMSC Carries about 4.4x less debt cushion than AMSC.
Total debt $1.39M Interest coverage 10.35x +321% vs AMSC Carries about 4.2x more debt cushion than AMSC.
Total debt $2.52M Interest coverage 1,067.94x +43,364% vs AMSC Carries about 434.6x more debt cushion than AMSC.
What you should know
The case for and against AMSC
3 Rewards
2 Risks
Rewards
-
Returns 30.2% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 9.7x P/E vs peer median 43.7x (77.7% cheaper).
Risks
-
Forward P/E (22.1x) is higher than trailing (9.7x) - 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)
9.74x
Forward P/E
22.15x
P/B
2.54x
P/S
4.53x
EV/EBITDA
56.55x
PEG ratio
0.74x
Profitability
How much profit each dollar creates
Gross margin
29.0%
Operating margin
2.6%
Net margin
42.6%
ROE
30.2%
ROA
1.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.43x
Quick ratio
1.59x
Total debt
$3.90M
Total cash
$143.71M
Growth
How the business has been compounding
Revenue TTM
$45.52M
Revenue 5Y CAGR
90.2%
EPS TTM
3.08
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$35.04M
Free CF TTM
$18.26M
FCF margin
40.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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