American Superconductor (NASDAQ: AMSC) is a global energy technology company that designs, manufactures, and sells advanced products and systems to help customers increase the reliability and efficiency of their power grid networks.
Fundamental Analysis
American Superconductor is currently trading at the $6.38 per share. On a fundamental analysis basis, the company has a price to sales ratio of 1.5. Additionally, the company has a current ratio of 1.4, which indicates that it is able to meet its financial obligations. The company also has a 5-year average revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... growth of 7.6%.
When the company reported on February 1, 2023, it missed on both EPS and revenue. AMSC reported Q3 adjusted EPS of (27c) versus the consensus estimate of (25c). The company reported Q3 revenue of $23.9M versus the consensus estimate of $23.99M.
“During our Q3 of FY22, we achieved progress on our strategic priority of a more diversified business. We believe we are well positioned to not only take advantage in the renewables, but also in semiconductor, mining and materials, and defense markets,” said CEO Daniel McGahn. “We booked $43M of total orders, including $26M of new energy power systems orders. We secured our fifth ship protection system for the amphibious ship platform LPD-32 and ended our Q3 with a backlog of over $110M. Our pipeline of prospective orders, driven mainly by macro-trends such as climate and environmental policies, is diversified and expected to position us for future growth.”
Overall, American Superconductor appears to be a well-managed company, with strong financials and revenue growth. However, investors should be aware that the company is heavily reliant on the US government for its business.
Technical Analysis
A technical analysis of the stock shows that the stock is currently in an uptrend, with the stock having recently broken above its 200-day moving average on January 19, 2023.
Final Thoughts
Overall, American Superconductor appears to be a good buy at current levels. The stock is trading at a reasonable valuation, has strong financials, and is currently in an uptrend. However, investors should be aware that the company is heavily reliant on the US government for its business.
