American Superconductor (AMSC) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 2.7
• Beta (1Y): 2.23
• Revenue Growth: 51.17%
• EPS Growth: N/A
• Country: US
• Employees: 569
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.75
• Shares Outstanding: 47,612,286
• 10 Day Avg. Volume: 853,649
• 30 Day Avg. Volume: 1,240,318
• 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: 0.88
• Enterprise Value/Revenue: 4.68
• Enterprise Value/Gross Profit: 15.29
• Enterprise Value/Ebitda: 56.18
• 1Y Price Target: $53.33
• Price Target Upside: 71.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.82
• Revenue Forecast (FY): $294.85M

• Rating: 74 Outperform
• Price Target: $35.00 ▲(12.29% Upside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

The score is driven primarily by improving fundamentals and strong balance-sheet strength, reinforced by bullish operational commentary and forward guidance. The rating is tempered by earnings quality/cash conversion concerns (including the one-time tax benefit) and a mixed technical setup where longer-term trend indicators remain weak.

Positive Factors

Balance-sheet strength

Extremely low leverage and an expanded equity base provide durable financial flexibility to fund organic growth, acquisitions, and working-capital needs without relying on high-cost debt. This supports resilience through industry cycles and underpins the company's ability to invest in capacity and exports over the next several quarters.

Robust multi-quarter backlog

A >$250M 12-month backlog gives multi-quarter revenue visibility and helps smooth the impact of long product lead times. For a project-driven power-systems business, this backlog materially reduces short-term revenue volatility and supports sustained top-line growth as contracts convert to milestones and shipments.

Margin expansion and consistent profitability

Consecutive quarters of 30%+ gross margins and a multi-quarter GAAP profit streak indicate improving unit economics and operational leverage. Sustained margin expansion supports reinvestment in R&D and service capacity and suggests the company is moving from recovery to a structurally more profitable operating profile if revenue trends persist.

Negative Factors

Earnings quality (one-time tax benefit)

The very large one-time $113.1M tax benefit materially inflated GAAP profits, masking underlying operating earnings. Ex‑benefit GAAP and non‑GAAP results are far smaller, so future comparability and investor expectations risk being distorted unless recurring operational profitability is maintained without similar nonrecurring boosts.

Near-term liquidity reduction from acquisition

The cash outflow for Comtrafo reduced the company's cash buffer by ~32%, lowering near-term liquidity while integration and working-capital needs rise. That tighter cash position increases sensitivity to execution hiccups and could constrain opportunistic spending or require external financing if growth or working-capital demands accelerate.

Integration and capacity-scaling risk

The newly acquired transformer business requires early-stage integration and potential Brazilian capacity expansion. Execution and scaling risks can pressure margins, raise capex and working-capital needs, and delay expected synergies. For project-heavy power equipment, missteps can produce lumpy delivery and strain cash conversion over multiple quarters.

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 makes money primarily by selling power electronics- and software-based grid solutions and by providing related engineering and support services. Key revenue streams typically include: (1) product revenue from grid interconnection and stabilization systems (e.g., solutions used to connect, control, and improve the performance of power generation assets—such as wind and other renewables—on the electric grid), including associated hardware, control software, and system components; (2) services revenue from engineering, system design, integration, commissioning, and ongoing support/maintenance provided to utilities, renewable project developers, and other grid operators; and (3) revenue from supplying control systems and related technologies used in power applications. Significant factors influencing earnings generally include utility and renewable energy capital spending cycles, grid modernization and reliability initiatives, and the company’s ability to win project-based contracts that may be recognized over time as milestones are delivered. Specific partnership details: null.

American Superconductor Financial Statement Overview

Summary

Turnaround is real with positive recent profitability and ~30% gross margins, plus an exceptionally low-leverage balance sheet. Offsets are mixed earnings quality (recent GAAP results boosted by non-recurring items) and only moderate earnings-to-cash conversion with softer TTM free cash flow versus the prior period.

Income Statement

Profitability has improved materially versus prior years: annual results moved from sizable losses in 2021–2024 to positive net income in 2025, and TTM (Trailing-Twelve-Months) margins are stronger (gross margin ~30%, positive operating and EBITDA margins). Revenue growth is solid in TTM (high single digits) after a slower growth rate in the latest annual period. Key watch-outs are that operating profitability remains relatively modest versus revenue (low-to-mid single digit operating/EBITDA margins), and the very large TTM net income relative to prior history suggests potential one-time or non-recurring influences, making durability of earnings a risk.

Balance Sheet

Balance sheet strength is a clear positive: leverage is extremely low (debt-to-equity roughly ~1% in TTM (Trailing-Twelve-Months) and low in annual periods as well), providing significant financial flexibility. Equity has expanded sharply over time, and return on equity has turned positive in the most recent periods after being negative in 2021–2024. The main weakness is that profitability is still early in the recovery cycle, so future returns on the expanded equity base need to prove sustainable.

Cash Flow

Cash generation has improved meaningfully from negative operating cash flow in 2021–2023 to positive operating cash flow and free cash flow in 2024–2025 and TTM (Trailing-Twelve-Months). However, TTM free cash flow declined versus the prior annual period, and cash flow quality relative to reported earnings looks mixed given operating cash flow covers only a modest portion of net income in both TTM and the latest annual period—suggesting working-capital swings or non-cash/non-recurring items may be impacting earnings-to-cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	279.40M	222.82M	145.64M	105.98M	108.44M	87.13M
Gross Profit	85.47M	61.85M	35.28M	8.52M	13.49M	17.45M
EBITDA	23.26M	12.14M	-1.97M	-26.53M	-21.60M	-14.75M
Net Income	130.49M	6.03M	-11.11M	-35.04M	-19.19M	-22.68M
Balance Sheet
Total Assets	719.53M	310.52M	232.77M	175.56M	173.89M	168.87M
Cash, Cash Equivalents and Short-Term Investments	141.07M	79.49M	90.52M	23.36M	40.58M	72.95M
Total Debt	11.38M	3.37M	2.71M	3.08M	3.80M	3.86M
Total Liabilities	182.70M	113.41M	88.20M	93.76M	64.50M	52.27M
Stockholders Equity	536.84M	197.11M	144.57M	81.80M	109.39M	116.59M
Cash Flow
Free Cash Flow	16.01M	25.87M	1.20M	-23.72M	-19.91M	-10.45M
Operating Cash Flow	20.15M	28.29M	2.14M	-22.48M	-18.98M	-8.68M
Investing Cash Flow	-76.41M	-35.21M	-961.00K	-1.52M	-7.16M	2.47M
Financing Cash Flow	124.01M	8.00K	65.44M	162.00K	142.00K	50.83M

American Superconductor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 31.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 31.17 is below the 20-day moving average (MA) of 31.85, below the 50-day MA of 31.51, and below the 200-day MA of 41.21, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 49.44 is Neutral, neither overbought nor oversold. The STOCH value of 75.25 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	75 Outperform	$1.93B	25.78	21.10%	0.10%	3.91%	1.48%
AMSC	74 Outperform	$1.48B	2.68	37.04%	―	51.17%	―
KAI	71 Outperform	$3.56B	33.07	11.32%	0.46%	-0.96%	-11.55%
SXI	68 Neutral	$3.09B	308.57	7.68%	0.57%	18.51%	-28.69%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CXT	56 Neutral	$2.42B	18.62	12.21%	1.42%	9.30%	-12.55%
PSIX	54 Neutral	$1.28B	11.54	81.27%	―	54.78%	122.61%

American Superconductor Corporate Events

American Superconductor registers shares for potential secondary sale

On December 23, 2025, American Superconductor Corporation disclosed that it filed a prospectus supplement with the U.S. Securities and Exchange Commission to register shares of its common stock for potential sale from time to time by certain existing stockholders, under an already effective shelf registration statement that became operative on August 12, 2024. The company also reported that its legal counsel, Latham & Watkins LLP, issued a legal opinion on the validity of these shares on the same date, a step that clears a procedural hurdle and facilitates potential secondary sales by those stockholders without directly raising new capital for the company itself.

The most recent analyst rating on (AMSC) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on American Superconductor stock, see the AMSC Stock Forecast page.