American Superconductor Corporation
American Superconductor Corporation Fundamental Analysis
American Superconductor Corporation (AMSC) shows strong financial fundamentals with a PE ratio of 11.57, profit margin of 46.70%, and ROE of 37.04%. The company generates $0.3B in annual revenue with strong year-over-year growth of 52.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze AMSC's fundamental strength across five key dimensions:
Efficiency Score
ExcellentAMSC demonstrates superior asset utilization.
Valuation Score
ExcellentAMSC trades at attractive valuation levels.
Growth Score
ModerateAMSC shows steady but slowing expansion.
Financial Health Score
ExcellentAMSC maintains a strong and stable balance sheet.
Profitability Score
ExcellentAMSC achieves industry-leading margins.
Key Financial Metrics
Is AMSC Expensive or Cheap?
P/E Ratio
AMSC trades at 11.57 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMSC's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values American Superconductor Corporation at 2.81 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 75.91 times EBITDA. This signals the market has high growth expectations.
How Well Does AMSC Make Money?
Net Profit Margin
For every $100 in sales, American Superconductor Corporation keeps $46.70 as profit after all expenses.
Operating Margin
Core operations generate 4.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $37.04 in profit for every $100 of shareholder equity.
ROA
American Superconductor Corporation generates $18.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Superconductor Corporation generates limited operating cash flow of $21.83M, signaling weaker underlying cash strength.
Free Cash Flow
American Superconductor Corporation produces free cash flow of $17.34M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
AMSC converts 0.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.81
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.37
vs 25 benchmark
ROA
Return on assets percentage
0.18
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How AMSC Stacks Against Its Sector Peers
| Metric | AMSC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.57 | 26.76 | Better (Cheaper) |
| ROE | 37.04% | 1300.00% | Weak |
| Net Margin | 46.70% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.66 | 10.68 | Strong Liquidity |
| ROA | 18.13% | -1545134.00% (disorted) | Strong |
AMSC outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Superconductor Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.01%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
120.02%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
197.27%
Industry Style: Cyclical, Value, Infrastructure
High Growth