American Superconductor (AMSC)
NASDAQ:AMSC
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American Superconductor
(NASDAQ:AMSC)
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Rating:74Outperform
Price Target:
$32.00
▼(-18.88% Downside)
Action:UpgradedDate: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
Very low leverage and an expanded equity base provide durable financial flexibility: the company can fund working-capital needs, pursue bolt-on M&A like Comtrafo, and absorb cyclical delays in utility spending without immediate refinancing risk, supporting multi-month execution.
Negative Factors
One-time Tax Benefit Inflating GAAP
A very large, non-recurring tax benefit materially boosted GAAP net income, making headline profitability an unreliable signal of ongoing earnings power. Analysts and management must normalize results to assess sustainable operating margins and future ROE over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and an expanded equity base provide durable financial flexibility: the company can fund working-capital needs, pursue bolt-on M&A like Comtrafo, and absorb cyclical delays in utility spending without immediate refinancing risk, supporting multi-month execution.
Read all positive factors
American Superconductor (AMSC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)902.80K
Price to Earnings (P/E)2.7
Beta (1Y)2.16
Revenue Growth51.17%
EPS GrowthN/A
CountryUS
Employees569
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.75
Shares Outstanding47,612,286
10 Day Avg. Volume888,420
30 Day Avg. Volume902,801
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)3.40
Price to Sales (P/S)3.01
P/FCF Ratio25.94
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue6.26
Enterprise Value/Gross Profit20.46
Enterprise Value/Ebitda75.18
Forecast
1Y Price Target
$53.33Price Target Upside35.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1
Revenue Forecast (FY)$357.90M
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 elect...
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 stabiliz...
American Superconductor Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: double-digit revenue growth (+21% YoY), expanding gross margins (31%), a robust >$250M backlog, consecutive profitability streaks, and strategic expansion via the Comtrafo acquisition that opens Brazil/Latin America and expands transformer capability. Management provided confident guidance for Q4 (> $80M revenue) and highlighted a new data center milestone. Offsetting factors include a very large one-time $113.1M tax benefit that materially inflated GAAP headline earnings, a meaningful cash reduction due to acquisition consideration, rising operating expenses and working capital investment to support growth, early-stage integration and capacity scaling needs in Brazil, and the nascent (and therefore uncertain) nature of new end-market opportunities like data centers. On balance, operational trends and backlog growth outweigh the near-term financial and integration headwinds, but investors should note the one-time nature of the tax benefit and the cash/working-capital impacts of the acquisition.Positive Updates
Record Quarter — Revenue Growth and Guidance
Q3 revenue of $74.5M (vs. $61.4M year-ago) — +21% YoY; exceeded guidance. Company guided Q4 revenue to exceed $80M and expects GAAP net income > $3M and non-GAAP net income > $8M.
Negative Updates
Large One-Time Tax Benefit Inflating GAAP Results
Q3 included a $113.1M tax benefit from the release of a valuation allowance on deferred tax assets, producing GAAP net income of $117.8M ($2.68/sh) and non-GAAP net income of $123.5M ($2.81/sh). Excluding the tax benefit, GAAP net income was $4.7M ($0.11/sh) vs. $2.5M year-ago (+88% YoY) and non-GAAP net income excluding the benefit was $10.5M vs. $6.0M year-ago (+75% YoY). The one-time nature of the tax benefit makes headline GAAP results less representative of ongoing operating profitability.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Quarter — Revenue Growth and Guidance
Q3 revenue of $74.5M (vs. $61.4M year-ago) — +21% YoY; exceeded guidance. Company guided Q4 revenue to exceed $80M and expects GAAP net income > $3M and non-GAAP net income > $8M.
Read all positive updates
Company Guidance
Management guided Q4 FY2025 (ending March 31, 2026) to revenues exceeding $80.0 million, GAAP net income above $3.0 million (>$0.07/share) and non‑GAAP net income above $8.0 million (>$0.17/share). This guidance follows a strong Q3 (ended Dec 31, 2025) featuring $74.5M revenue (+21% YoY), Grid 85%/Wind 15% mix ($63.2M Grid, $11.3M Wind), gross margin 31% (third consecutive quarter >30%), sixth consecutive GAAP profitable quarter and 10th consecutive non‑GAAP profitable quarter, $117.8M GAAP net income ($2.68/share) driven by a $113.1M tax benefit (ex‑benefit GAAP net income $4.7M, $0.11/share; ex‑benefit non‑GAAP $10.5M, $0.24/share), $147.1M cash after $88.3M cash paid for Comtrafo (Comtrafo contributed ~$4.6M in ~19 days), a 12‑month backlog >$250M, nine‑month revenue of $212M (nearly matching the prior fiscal year), operating cash flow $3.2M and quarterly CapEx of $0.9M.American Superconductor Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
88
Very Positive
Cash Flow
61
Positive
| 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
Positive
39.45
Price Trends
31.96
Positive
31.62
Positive
41.38
Negative
Market Momentum
1.22
Negative
64.53
Neutral
86.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMSC, the sentiment is Positive. The current price of 39.45 is above the 20-day moving average (MA) of 32.69, above the 50-day MA of 31.96, and below the 200-day MA of 41.38, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 86.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMSC.
American Superconductor Risk Analysis
American Superconductor disclosed 39 risk factors in its most recent earnings report. American Superconductor reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Superconductor Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.80B | 2.68 | 37.04% | ― | 51.17% | ― | |
71 Outperform | $1.80B | 11.54 | 81.27% | ― | 54.78% | 122.61% | |
69 Neutral | $3.87B | 33.07 | 11.32% | 0.46% | -0.96% | -11.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $3.30B | 308.57 | 7.68% | 0.57% | 18.51% | -28.69% | |
56 Neutral | $2.57B | 18.62 | 12.21% | 1.42% | 9.30% | -12.55% | |
53 Neutral | $1.91B | 32.79 | 21.10% | 0.10% | 3.91% | 1.48% |
* Industrials Sector Average
AMSC
American Superconductor
39.45
21.20
116.16%
EPAC
Enerpac Tool Group
36.39
-3.25
-8.20%
CXT
Crane NXT
45.61
1.48
3.36%
KAI
Kadant
332.15
14.16
4.45%
SXI
Standex International
269.75
131.12
94.58%
PSIX
Power Solutions
85.40
60.79
247.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.