Investment Thesis
AMSC demonstrates strong revenue growth of 53% YoY with exceptional profitability metrics, including a 60.8% net margin and robust ROE of 24.1%, indicating effective capital deployment. The company maintains a fortress balance sheet with minimal debt (0.01x D/E ratio), substantial cash reserves of $141.1M, and excellent liquidity (2.66x current ratio), providing significant financial flexibility.
AMSC Strengths
- Outstanding revenue growth of 53% YoY in motors & generators sector
- Exceptional net margin of 60.8% and ROE of 24.1% demonstrate operational excellence
- Strong balance sheet with $141.1M cash, minimal debt ($6.1M), and 0.01x debt-to-equity ratio
- Excellent liquidity position with 2.66x current ratio and 1.80x quick ratio
- High interest coverage of 59.8x indicates minimal financial distress risk
- Positive free cash flow of $10.8M with 5.1% FCF margin
AMSC Risks
- Anomalously high net margin of 60.8% versus 5.6% operating margin suggests significant non-operating income, raising sustainability questions
- Weak operating margin of 5.6% relative to gross margin of 31.9% indicates elevated OpEx or operating challenges
- Free cash flow of $10.8M significantly lags net income of $129.3M, suggesting potential earnings quality concerns or working capital pressures
- Limited insider activity with only 1 Form 4 filing in 90 days may indicate low insider confidence
- FCF margin of 5.1% is concerning given the strong revenue growth trajectory
Key Metrics to Watch
- Operating cash flow trend and working capital dynamics relative to net income growth
- Gross margin sustainability amid 53% revenue growth
- Source and sustainability of non-operating income driving the 60.8% net margin
- Operating margin expansion path as company scales
- Free cash flow conversion ratio and capital efficiency
AMSC Financial Metrics
AMSC Profitability Ratios
AMSC Balance Sheet & Liquidity
AMSC 5-Year Financial Trend
5-Year Trend Summary: AMERICAN SUPERCONDUCTOR CORP /DE/'s revenue has grown significantly by 249% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.37 indicates the company is currently unprofitable.
AMSC Growth Metrics (YoY)
AMSC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $61.4M | $2.5M | $0.06 |
| Q2 2026 | $54.5M | $2.4M | $0.06 |
| Q1 2026 | $40.3M | -$2.5M | $-0.07 |
| Q3 2025 | $39.4M | -$1.6M | $-0.06 |
| Q2 2025 | $34.0M | $2.4M | $0.06 |
| Q1 2025 | $30.3M | -$2.5M | $-0.07 |
| Q3 2023 | $23.9M | -$1.6M | $-0.06 |
| Q2 2023 | $27.7M | -$2.5M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AMSC Capital Allocation
AMSC SEC Filings
Access official SEC EDGAR filings for AMERICAN SUPERCONDUCTOR CORP /DE/ (CIK: 0000880807)