American Superconductor Corp /De/ (NASDAQ: AMSC)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0000880807
Market Cap 1.60 Bn
P/B 2.98
P/E 12.26
P/S 5.73
ROIC (Qtr) 66.22
Div Yield % 0.00
Rev 1y % (Qtr) 21.38
Total Debt (Qtr) 10.31 Mn
Debt/Equity (Qtr) 0.02
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About

American Superconductor Corporation (AMSC), a prominent player in the power grid and renewable energy industries, is dedicated to providing solutions that address the growing demand for renewable energy, electrification of transportation, semiconductors, and the Navy fleet. The company's operations span various countries and regions, offering a wide range of products and services, including wind turbines, power electronics and control systems, grid interconnection solutions, and advanced ship protection systems. AMSC's revenue is generated primarily...

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Investment thesis

Bull case

  • Strong operating cash flow of 20.15M provides robust 1.96x coverage of total debt 10.30M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 147.11M provide 90.75x coverage of short-term debt 1.62M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 539.31M provides 52.33x coverage of total debt 10.30M, indicating robust asset backing and low credit risk.
  • Tangible assets of 539.31M provide exceptional 6.04x coverage of deferred revenue 89.36M, showing strong service capability backing.
  • Robust free cash flow of 16.01M exceeds capital expenditure of 4.14M by 3.87x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 20.15M barely covers its investment activities of (76.41M), with a coverage ratio of -0.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (76.41M) provide weak support for R&D spending of 15.07M, which is -5.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 147.11M provide limited coverage of acquisition spending of (72.10M), which is -2.04x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 20.15M provides insufficient coverage of deferred revenue obligations of 89.36M, which is 0.23x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 20.15M shows concerning coverage of stock compensation expenses of 14.97M, with a 1.35 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.92 2.28
EV to Cash from Ops. EV/CFO 68.67 37.14
EV to Debt EV to Debt 134.28 34.39
EV to EBIT EV/EBIT 70.49 27.71
EV to EBITDA EV/EBITDA 67.74 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF 86.42 133.36
EV to Market Cap EV to Market Cap 0.86 1.04
EV to Revenue EV/Rev 4.95 39.88
Price to Book Value [P/B] P/B 2.98 6.22
Price to Earnings [P/E] P/E 12.26 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) 0.00 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -147.04 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 83.80 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3,916.16 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 118.94 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,322.42 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) 1,322.42 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) 3,222.22 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) -29.00 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 56.55 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 1.21 3.01
Current Ratio Curr Ratio (Qtr) 2.67 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.38
Interest Cover Ratio Int Coverage (Qtr) 0.00 12.34
Times Interest Earned Times Interest Earned (Qtr) 0.00 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.50 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) 7.03 -7,413.30
EBT Margin % EBT Margin % (Qtr) 7.03 -9,015.79
Gross Margin % Gross Margin % (Qtr) 30.60 -32.61
Net Profit Margin % Net Margin % (Qtr) 46.70 -7,962.06