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American Superconductor (AMSC)
NASDAQ:AMSC
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American Superconductor
(NASDAQ:AMSC)
67Neutral
Positive Factors
Acquisition Impact
The acquisition of NWL is expected to accelerate American Superconductor's expansion in military and industrial applications.
Financial Performance
AMSC's 1Q-FY24 revenue exceeded expectations with a 30% year-over-year increase, and it achieved record cash flow and a gross margin over 30%.
Guidance and Expectations
American Superconductor has raised its revenue and operating cash flow guidance, exceeding previous ranges and Street expectations.
Negative Factors
Acquisition Challenges
While the acquisition of NWL is expected to contribute positively, integration challenges and potential disruptions could impact short-term operations.
Dependency on Renewables
American Superconductor's reliance on the increased use of renewables and electrification may expose it to regulatory changes and market volatility.
Market Competition
As a key solutions provider in electrification and renewables, American Superconductor faces intense competition, which could pressure margins and market share.
American Superconductor (AMSC) vs. S&P 500 (SPY)
Market Cap
$947.82M
Dividend YieldN/A
Average Volume (3M)512.27K
Price to Earnings (P/E)316.1
Beta (1Y)2.50
Revenue Growth46.42%
EPS GrowthN/A
CountryUS
Employees337
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.16
Shares Outstanding39,459,732
10 Day Avg. Volume450,482
30 Day Avg. Volume512,274
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)4.22
Price to Sales (P/S)0.00
P/FCF Ratio37.82
Enterprise Value/Market Cap0.82
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit14.30
Enterprise Value/Ebitda46.44
Forecast
1Y Price Target
$38.50Price Target Upside60.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
American Superconductor Business Overview & Revenue Model
Company DescriptionAmerican 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 MoneyAMSC generates revenue through the sale of its power electronics and superconductor-based solutions. The company's revenue streams include product sales, service contracts, and licensing agreements. A significant portion of its income comes from its wind segment, where it supplies advanced control systems and components for wind turbines. Additionally, AMSC's grid segment contributes to earnings through the sale of smart grid products, such as D-VAR systems, which help stabilize and optimize power grids. Strategic partnerships with energy companies and government entities also play a crucial role in driving revenue growth for AMSC.
American Superconductor Financial Statement Overview
Summary
American Superconductor shows strong revenue growth and improved gross margins. The balance sheet is robust with low debt and positive return on equity. Cash flow management is excellent, with strong liquidity and free cash flow growth. However, operational efficiency remains a challenge due to negative EBIT margins.Income Statement
American Superconductor has shown a strong revenue growth in the TTM (Trailing-Twelve-Months) period, with a significant increase from the previous annual reports. The gross profit margin has improved, indicating better cost management. However, the company still faces challenges with negative EBIT margin, suggesting issues with operational efficiency despite positive net income in the TTM. The EBITDA margin is positive, indicating potential for future profitability improvements.72
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio, reflecting a conservative financial structure. The equity ratio is healthy, showing that a significant portion of assets is financed by shareholders' equity. The return on equity has turned positive in the TTM period, indicating better use of equity to generate profits. Overall, the balance sheet shows a solid foundation with low leverage.80
Positive
Cash Flow
The company has demonstrated impressive cash flow management, with strong growth in free cash flow in the TTM period. The operating cash flow to net income ratio is favorable, indicating efficient conversion of earnings into cash. Free cash flow is robust, suggesting strong liquidity and the ability to invest in growth opportunities or reduce debt.85
Very Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 198.19M | 145.64M | 105.98M | 108.44M | 87.13M | 63.84M | Gross Profit |
| 54.59M | 35.28M | 8.52M | 13.49M | 17.45M | 9.45M | EBIT |
| -4.96M | -11.37M | -33.01M | -21.09M | -23.16M | -23.13M | EBITDA |
| 9.47M | -1.97M | -26.53M | -21.60M | -14.75M | -18.82M | Net Income Common Stockholders |
| 3.25M | -11.11M | -35.04M | -19.19M | -22.68M | -17.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 90.99M | 90.52M | 23.36M | 40.58M | 72.95M | 54.85M | Total Assets |
| 232.77M | 232.77M | 175.56M | 173.89M | 168.87M | 124.11M | Total Debt |
| 2.71M | 2.71M | 3.08M | 3.80M | 3.86M | 3.44M | Net Debt |
| -88.28M | -87.81M | -20.28M | -36.78M | -63.96M | -21.26M | Total Liabilities |
| 88.20M | 88.20M | 93.76M | 64.50M | 52.27M | 51.89M | Stockholders Equity |
| 144.57M | 144.57M | 81.80M | 109.39M | 116.59M | 72.22M |
| Cash Flow | Free Cash Flow | ||||
| 22.54M | 1.20M | -23.72M | -19.91M | -10.45M | -21.13M | Operating Cash Flow |
| 24.23M | 2.14M | -22.48M | -18.98M | -8.68M | -16.50M | Investing Cash Flow |
| -34.38M | -961.00K | -1.52M | -7.16M | 2.47M | -36.62M | Financing Cash Flow |
| 65.21M | 65.44M | 162.00K | 142.00K | 50.83M | 5.78M |
American Superconductor Technical Analysis
Positive
24.02
Price Trends
19.62
Positive
23.22
Positive
24.09
Negative
Market Momentum
1.14
Negative
70.19
Negative
86.88
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 24.02 is above the 20-day moving average (MA) of 20.97, above the 50-day MA of 19.62, and below the 200-day MA of 24.09, indicating a neutral trend. The MACD of 1.14 indicates Negative momentum. The RSI at 70.19 is Negative, neither overbought nor oversold. The STOCH value of 86.88 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $853.37M | 10.51 | 185.56% | ― | 17.92% | 173.25% | |
67 Neutral | $947.82M | 316.05 | 2.39% | ― | 46.42% | ― | |
64 Neutral | $4.42B | 11.99 | 5.16% | 249.23% | 4.02% | -11.68% | |
53 Neutral | $42.65M | 30.96 | -1.24% | ― | -25.94% | -108.22% | |
42 Neutral | $370.22M | 43.62 | -24.23% | ― | 100.00% | 6.28% | |
39 Underperform | $55.95M | ― | 77.71% | ― | 1.71% | -3.55% | |
35 Underperform | $1.02B | ― | -45.55% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
AMSC
American Superconductor
24.02
9.68
67.50%
BWEN
Broadwind Energy
1.88
-2.06
-52.28%
PSIX
Power Solutions
37.09
32.79
762.56%
TPIC
TPI Composites
1.15
-2.80
-70.89%
NPWR
NET Power
1.69
-9.40
-84.76%
NNE
Nano Nuclear Energy Inc.
27.25
23.42
611.49%
American Superconductor Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q3-2024)
| % Change Since: -5.88%|
Next Earnings Date:May 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong quarter for AMSC, with record revenues, significant growth in the grid and wind segments, and positive cash flow. The company successfully expanded its backlog and saw positive indicators for future growth, particularly in the wind and Navy markets. However, some dependence on timely payments from Inox Wind presents a potential risk. Overall, the sentiment is optimistic with positive financial and operational performance.Q3-2024 Updates
Positive Updates
Record-Breaking Revenue and Growth
Total revenues for the third quarter of fiscal year 2023 exceeded expectations and guidance range, reaching over $39 million, driven by strong customer demand and pricing initiatives. The grid segment revenue grew over 60% year-over-year, and wind business grew about 90%.
Strong Backlog and New Orders
The company booked over $34 million of new orders and grew its 12-month backlog to over $137 million, a nearly 25% increase compared to the year-ago period. New energy power systems orders averaged over $30 million per quarter during fiscal year 2023.
Positive Financial Performance
AMSC achieved a non-GAAP net income of $900,000 or $0.03 per share, compared to a net loss of $7.7 million or $0.27 per share in the year-ago quarter. The gross margin for the third quarter of fiscal 2023 rose to 25% from 2% in the year-ago quarter.
Navy and Wind Market Expansion
Progress on Navy development programs and securing new orders for electrical control systems from Inox Wind indicates growth in both military and wind segments. The wind business in India is strengthening, and more ships are on the horizon for Navy projects.
Negative Updates
Dependence on Inox Wind Payments
The successful delivery of the $8 million order for 3-megawatt electrical control systems from Inox Wind depends on timely payments, which introduces a risk factor.
Company Guidance
In the AMSC third-quarter fiscal 2023 earnings call, the company reported strong financial performance and provided guidance for the upcoming quarter. Total revenues for the third quarter reached $39.4 million, with the grid segment accounting for 85% and growing over 60% compared to the previous year. The wind segment also saw a significant increase of 90% year-over-year, contributing 15% to total revenues. Gross margins improved to 25%, up from 2% in the same quarter last year. AMSC recorded a non-GAAP net income of $900,000, or $0.03 per share, compared to a net loss of $7.7 million in the previous year. The company ended the quarter with $25 million in cash and generated $1.3 million in positive operating cash flow. For the fourth quarter, AMSC expects revenues between $36 million and $40 million, with a net loss not exceeding $3.5 million. The company anticipates breakeven to positive operating cash flow of up to $2 million and aims to maintain at least $25 million in cash reserves.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.