NasdaqGS:AMSC

Stock Analysis Report

Executive Summary

American Superconductor Corporation provides megawatt-scale solutions worldwide.

Rewards

Revenue is forecast to grow 23.05% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has American Superconductor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMSC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

AMSC

-1.7%

US Electrical

0.06%

US Market


1 Year Return

-50.8%

AMSC

12.4%

US Electrical

19.4%

US Market

Return vs Industry: AMSC underperformed the US Electrical industry which returned 12.4% over the past year.

Return vs Market: AMSC underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

AMSCIndustryMarket
7 Day4.5%-1.7%0.06%
30 Day-2.0%-0.7%1.1%
90 Day-3.6%5.4%8.9%
1 Year-50.8%-50.8%14.7%12.4%21.9%19.4%
3 Year15.7%15.7%33.1%25.4%48.9%39.3%
5 Year-3.1%-3.1%48.5%33.6%71.9%53.1%

Price Volatility Vs. Market

How volatile is American Superconductor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Superconductor undervalued compared to its fair value and its price relative to the market?

2.26x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AMSC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AMSC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AMSC is unprofitable, so we can't compare its PE Ratio to the Electrical industry average.

PE vs Market: AMSC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AMSC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMSC is overvalued based on its PB Ratio (2.3x) compared to the US Electrical industry average (1.8x).


Next Steps

Future Growth

How is American Superconductor forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

25.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMSC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AMSC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AMSC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AMSC's revenue (23% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AMSC's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMSC is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has American Superconductor performed over the past 5 years?

42.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMSC is currently unprofitable.

Growing Profit Margin: AMSC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMSC is unprofitable, but has reduced losses over the past 5 years at a rate of 42.4% per year.

Accelerating Growth: Unable to compare AMSC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AMSC is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (0.6%).


Return on Equity

High ROE: AMSC has a negative Return on Equity (-25.34%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Superconductor's financial position?


Financial Position Analysis

Short Term Liabilities: AMSC's short term assets ($89.3M) exceed its short term liabilities ($35.0M).

Long Term Liabilities: AMSC's short term assets ($89.3M) exceed its long term liabilities ($11.3M).


Debt to Equity History and Analysis

Debt Level: AMSC is debt free.

Reducing Debt: AMSC has no debt compared to 5 years ago when its debt to equity ratio was 10.4%.


Balance Sheet

Inventory Level: AMSC has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AMSC's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if AMSC has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AMSC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is American Superconductor's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AMSC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AMSC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMSC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMSC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMSC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Dan McGahn (48yo)

8.7yrs

Tenure

US$2,895,658

Compensation

Mr. Daniel Patrick McGahn, also known as Dan, has been Chief Executive Officer of American Superconductor Corporation since June 1, 2011. He has been President at American Superconductor Corporation since  ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD2.90M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Dan's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel McGahn
Chairman8.7yrsUS$2.90m2.35% $4.2m
John Kosiba
CFO, Senior VP & Treasurer2.8yrsUS$1.20m0.91% $1.6m
James Maguire
Executive Vice President of Technology2.8yrsUS$576.47kno data
John Samia
Secretary0yrsno datano data

2.8yrs

Average Tenure

48yo

Average Age

Experienced Management: AMSC's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel McGahn
Chairman8.7yrsUS$2.90m2.35% $4.2m
David Oliver
Independent Director13.4yrsUS$94.42k0.12% $215.7k
Vikram Budhraja
Independent Director15.9yrsUS$102.47k0.20% $358.8k
Arthur House
Lead Independent Director0.8yrsUS$94.89k0.068% $120.8k
Barbara Littlefield
Independent Director0.8yrsno datano data

1.6yrs

Average Tenure

71yo

Average Age

Experienced Board: AMSC's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

American Superconductor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Superconductor Corporation
  • Ticker: AMSC
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$177.746m
  • Shares outstanding: 22.56m
  • Website: https://www.amsc.com

Number of Employees


Location

  • American Superconductor Corporation
  • 114 East Main Street
  • Ayer
  • Massachusetts
  • 1432
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMSCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1991
AMS1DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1991

Biography

American Superconductor Corporation provides megawatt-scale solutions worldwide. The company operates in two segments, Wind and Grid. 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, 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. The Grid segment offers products and services that enable electric utilities and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. 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, which provide protection against the adverse effects that follow the loss of critical substation facilities in urban areas; and ship protection systems, which reduce a naval ship’s magnetic signature. American Superconductor Corporation was founded in 1987 and is headquartered in Ayer, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:42
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.