American Superconductor (AMSC): Future Prospects and Stock Price Outlook

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

American Superconductor (AMSC) is a company that is gaining attention in the power infrastructure and renewable energy sectors with its advanced power technologies, including smart grids.

Against a backdrop of increasing demand for electricity and challenges surrounding power supply due to the spread of AI, AMSC is leveraging its unique technologies and competitive advantages to increase its presence in the market.

In this section, we explore in detail AMSC's operations, strengths, and future growth potential in the face of growing expectations for the modernization of electric power infrastructure and next-generation energy technologies.

What is American Superconductor (AMSC) and what is its business?

American Superconductor (AMSC) is,An energy technology company headquartered in Ayer, Massachusetts, USA.
It was established in 1987,Engaged in renewable energy productionThe company is doing so.

AMSC is,Provides power resiliency solutions, primarily in three business areas: Grid Tech, Marine Tech, and Wind TechThe company is doing so.

GridTech provides engineering planning services and grid systems that optimize the reliability, efficiency, and performance of power transmission and distribution networks.

MarineTech develops propulsion and power management solutions that provide vessel protection, improve system efficiency, power quality, and enhance operational safety.

Windtech provides electronic control and system design and engineering services for wind turbines.

What are AMSC's strengths?Advanced technological capabilities and ability to provide diverse solutions in the renewable energy sector to improve the performance and reliability of power networks worldwide.I am making them do it.

Corporate information for American Superconductor is below.

• Company Name:American Superconductor Corporation : American Superconductor
• Year Established: 1987
• Head Office Location: 114 East Main Street, Ayer, Massachusetts, U.S.A.
• representative: Daniel P. McGahn
• Official Site: https://www.amsc.com/
• Main Businesses: GridTech, MarineTech, and WindTech solutions.

AMSC is a company that promotes renewable energy and the optimization of electricity networks.

What are American Superconductor's (AMSC) main services?

American Superconductor (AMSC) offers three main services

Gridtec Solutions

Provides engineering planning services and grid systems that optimize the reliability, efficiency, and performance of the power grid. It assists utilities and renewable energy project developers in connecting, transmitting, and distributing power. The company also sells ship protection products to the U.S. Navy.

Marinetec Solutions

Develops propulsion and power management solutions to improve ship system efficiency, power quality, and enhance operational safety. In particular, the company provides demagnetization systems for the U.S. Navy to help protect ships.

Windtec Solutions

Provides electronic control and system design and engineering services for wind turbines. The company supplies power electronics and control systems to wind turbine manufacturers, offering a variety of solutions that optimize performance, efficiency, and grid compatibility.

Through these services, AMSC addresses diverse needs in the energy sector and provides sustainable energy solutions.

What is AMSC's corporate philosophy and vision?

What is AMSC's corporate philosophy?Provide gigawatts of renewable energy worldwide and improve the performance and reliability of power networks in more than a dozen countriesThings to do.

Vision,Smarter, Cleaner ... Better Energy."

With these principles and vision, AMSC provides advanced power electronics technology and superconducting systems to realize sustainable energy solutions.

Why is ASMC getting so much attention?

Press coverage of the development of room temperature superconductors

In July 2023, a group of physicists claimed to have developed a superconductor that functions at room temperature and ambient pressure. Following this report, the stock price of AMSC, a company related to superconductivity technology, soared.
Expectations for superconductor technology are rising and the potential of related companies is being reevaluated.

Growth of the renewable energy market

Against a backdrop of growing interest in renewable energy worldwide,AMSC's technologies in wind power generation, transmission and distribution are attracting attention.Particularly,Grid technologies that support the spread of sustainable energy are highly valued in the marketThe company has obtained

Demand for modernization of power infrastructure

AMSC's GridTech solutions contribute to the modernization of the power supply network as aging power infrastructure is upgraded and smart grids are introduced.Infrastructure construction to meet new electricity demand is accelerating.

Increased demand for electricity due to the development of AI

Along with the spread of AI, demand for electricity has skyrocketed. The following three factors are at play.

• Increased power consumption in data centers
  Demand for power in data centers is growing rapidly as AI learning and inference processes require enormous computational resources, and is projected to increase by 1601 TP3T by 2030.
• Increased burden on electric power infrastructure
  The increased demand for electricity associated with the spread of AI and EVs is putting a strain on existing infrastructure. New infrastructure needs to be built to address this issue.
• Increased investment in electricity supply networks
  Investments to strengthen the power grid are underway in the U.S. and other major countries, and AMSC's technology is expected to be a solution that can meet this demand.

For these reasons, AMSC is a company that is attracting attention on multiple fronts: the renewable energy market, superconductivity technology, and the power needs of AI, and its future prospects are important.

What is the trading market?

American Superconductor (AMSC) is listed on the NASDAQ market in the United States. Its ticker symbol is "AMSC.

What are the sectors, industries, and themes to which American Superconductor (AMSC) belongs?

sector

Capital goods (Industrials):AMSC belongs to the capital goods sector and primarily provides power resiliency solutions. The company's technology is driving innovation in the energy industry by helping to improve the efficiency and reliability of power transmission and distribution networks.

type of industry

Electrical Equipment:AMSC develops and provides power control systems and related products to optimize power transmission and distribution systems. In this way, the company helps utilities and developers of renewable energy projects to efficiently connect, transmit, and distribute power.

Themes belonging to

Modernization of renewable energy and electricity infrastructure:AMSC is engaged in the production of renewable energy and provides solutions to support the modernization of the power transmission and distribution grid. In this way, it contributes to the realization of a sustainable energy supply and the strengthening of the electric power infrastructure.

Dividends?

American Superconductor (AMSC) does not currently pay a dividend.

Who are American Superconductor's (AMSC) competitors?

American Superconductor's (AMSC) main competitors are.

• General Electric (GE)AMSC: A U.S.-based multinational conglomerate that provides generators, transmission and distribution equipment for the energy sector, and like AMSC, works to improve the efficiency and reliability of power infrastructure.
• Honeywell International (HON): a U.S. multinational company active in the energy and industrial automation sector. It offers power transmission and distribution systems and energy management solutions and competes on the market with AMSC.
• ABB Group (ABB): a multinational company headquartered in Switzerland with a global presence in the field of power and automation technology. It offers power transmission and distribution equipment and smart grid solutions and operates in the same market segments as AMSC.
• Siemens (SI): A German-based multinational company offering a wide range of products and services in the energy, infrastructure, and industrial sectors. It competes with AMSC particularly in power transmission and distribution systems and renewable energy solutions.

These companies compete in markets similar to AMSC's in modernizing power infrastructure and promoting renewable energy.

What is the size and growth potential of the industry to which American Superconductor (AMSC) belongs?

The industries in which American Superconductor (AMSC) operates are the power infrastructure and renewable energy sectors. The size and growth potential of these industries are as follows

Power Infrastructure Industry

The electric power infrastructure industry is undergoing efforts to improve the efficiency and reliability of energy supply, including the development of power transmission and distribution networks and the introduction of smart grids.
In particular, large investments are being made to upgrade aging infrastructure and to meet the increased demand associated with the spread of renewable energy.

For example,In the U.S., significant capital investment is planned to strengthen the electric power supply grid, and the market is expected to continue to expand in the future.

Renewable Energy Industry

The renewable energy market is growing rapidly and is expected to reach US$2,449.6 billion by 2032.measurementThe company has been
This represents a CAGR of 9.471 TP3T. In particular, the hydropower segment accounted for the largest market share.

The growth of these industries will create additional market opportunities for the power resiliency solutions and renewable energy-related products offered by AMSC.

What are American Superconductor's (AMSC) differentiators and advantages over its competitors?

AMSC has the following differentiators and competitive advantages

Utilization of superconductivity technology

AMSC has a strong relationship with the U.S. Navy through the development of ship protection systems utilizing superconducting technology. This technology contributes to improved system efficiency and power quality for ships, and is a stable source of revenue for the military sector.

Diversified Solution Offerings

Through its GridTech, MarineTech, and WindTech solutions, AMSC offers a wide range of services to improve the reliability of the power grid, enhance the operational safety of ships, and optimize the performance of wind turbines.

The company has established a competitive edge in a wide range of markets by responding to the renewable energy market and the demand for modernization of power infrastructure.

Regional risk diversification

The company was highly dependent on the Chinese market in the past, but has now reduced its dependence on the Chinese market to around 151 TP3T in sales. The company has minimized the impact of geopolitical risks and achieved stable business operations.

These factors differentiate AMSC from its competitors and maintain a sustainable competitive advantage.

What is ASMC's high-temperature superconducting cable?

AMSC is developing innovative cable systems utilizing high-temperature superconducting (HTS) technology.
HTS cables can transmit several to dozens of times more current efficiently over the same cross-sectional area than conventional copper or aluminum cables.
Reduction of transmission losses and higher efficiency of power infrastructureDo.

AMSC's HTS cables are cooled with a refrigerant such as liquid nitrogen to maintain a superconducting state and enable high-density current transmission.

This technology is expected to be a solution to meet the increasing demand for electricity in urban areas due to the underground power grid and the massive introduction of renewable energy sources.

Furthermore, HTS technology also contributes to the miniaturization and weight reduction of power equipment, and makes a significant contribution to improving transmission efficiency and reducing power losses.

AMSC aims to modernize the electric power infrastructure with this technology to achieve a sustainable energy supply.

What are the features of ASMC's wind turbine control systems?

AMSC provides advanced control systems to improve the performance and reliability of wind turbines. These systems contribute to increased efficiency and reduced costs of wind power generation.

Main Features

• Blade pitch control: Optimizing the blade angle in response to wind speed and wind direction variations maximizes power generation efficiency and reduces the load on the turbine.
• Introduction of Model Predictive Control: Achieve optimal control by analyzing output fluctuation characteristics under wind speed fluctuation and load fluctuation characteristics of major machine elements.
• Real-time monitoring and optimization: The operating status of the turbine is monitored in real time and operated or shut down as necessary to maintain stable power generation.

With these control systems, AMSC's wind turbines achieve high power generation efficiency and reliability.

What are the characteristics of ASMC's technology for power grids (Smart Grid)?

A smart grid is a next-generation power grid that uses information technology (IT) to control the amount of electricity from both the supply and demand sides.
Unlike conventional unidirectional power supply, the bi-directional exchange of power and information enables efficient power supply and effective introduction of renewable energy.

Smart Grid Main Features

• bidirectional communication: Real-time, bidirectional communication of power consumption data and supply instructions through smart meters and other devices. This optimizes the balance between supply and demand and reduces the risk of excessive power generation and power outages.
• Renewable Energy IntegrationThe project will: effectively incorporate renewable energy sources such as solar and wind power into the power grid, and promote local production and local consumption of electricity in the region. This will enable reduction of environmental impact and energy self-sufficiency.
• Demand Response: Analyze electricity consumption patterns on the demand side and implement incentives and controls to curb consumption during peak hours. This will improve the stability and efficiency of electricity supply.

AMSC Initiatives

AMSC's high-temperature superconducting (HTS) cables and power control systems are helping to improve transmission efficiency and reduce power losses, helping to realize a smart grid.
The company promotes the integration of renewable energy and the modernization of electric power infrastructure, contributing to the realization of a sustainable energy supply.

The introduction of smart grids is an important step toward achieving efficient energy use and stable energy supply, and AMSC's technology plays a central role in this process.

AMSC's Performance

AMSC's financial year ends on March 31.
The quarterly schedule of financial results announcements is as follows

• First Quarter ResultsEarly August
• Second Quarter Financial ResultsEarly Nov.
• Third Quarter ResultsEarly Feb.
• Fourth Quarter and Full Year ResultsLate May

First, we will review the following four indicators to perform a minimum performance analysis of American Superconductor (AMSC).

1. Sales:An indicator of a company's performance and growth.
2. Operating cash flow and operating cash flow margin:An indicator that looks at how much cash a company generates from its services. Margins are considered excellent when they are 15% of that ratio.
3. Operating Income:Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. Free Cash Flow:Free cash that a company keeps on hand. Indicates financial flexibility and business stability.
5. EPS:An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the profitability.

Each data is,Investing.com, ,TradingViewSee from

American Superconductor (AMSC) Stock Price

AMSC's current real-time stock price chart (TradingView).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

ASMC Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

AMSC Quarterly: Operating Cash Flow and Free Cash Flow Trends

Quarterly operating cash flow, operating cash flow margin and free cash flow.

Each transition is shown in the graph below.

AMSC Quarterly: Operating Income and Operating Margin Trends

Quarterly operating income and operating margin trends.

Each transition is shown in the graph below.

AMSC Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

AMSC Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

AMSC full year: operating cash flow and free cash flow trends

Operating cash flow, operating cash flow margin and free cash flow for the full year.

Each transition is shown in the graph below.

AMSC Full Year: Operating Income and Operating Margin Trends

The following is a trend of operating income and operating income margin for the full year.

Each transition is shown in the graph below.

AMSC Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

What is the future life and outlook for American Superconductor (AMSC)?

AMSC has a promising future with the modernization of renewable energy and power infrastructure.

Pioneer in High Temperature Superconductivity (HTS) technology

AMSC is the first company to successfully commercialize high-temperature superconducting technology and holds many patents and technologies in this field. HTS technology contributes to reducing power loss and solving the heat generation problem, making a significant contribution to improving the efficiency of power infrastructure.

Growth of the renewable energy market

With the growing interest in renewable energy worldwide, wind power generation and transmission/distribution solutions provided by AMSC are attracting attention. In particular, wind turbine control systems and grid-tech solutions play an important role in the efficient deployment and operation of renewable energy.

Demand for modernization of power infrastructure

As aging power infrastructure is being upgraded and smart grids are being introduced, AMSC's technology is contributing to improving the reliability and efficiency of the power grid. The company's high-temperature superconducting cables and power control systems are making significant contributions to improving transmission efficiency and reducing power losses.

Financial Condition and Stock Price Outlook

For the second quarter of FY2024, the company reported earnings of 27 cents per share, a significant increase from 1 cent per share in the same period last year. Sales also increased 601 TP3T and are expected to grow.

American Superconductor (AMSC) Q1 2024 Financial Summary

Date of announcement: 24/8/7

Sales and Revenues

• total sales: $40.3M (+33% y/y).
  • Growth factor: increased shipments of new energy power systems and electrical control systems.
• net loss: $2.52 million (reduced loss from $5.39 million in the same period of the previous year).
• Adjusted Net Income (Non-GAAP): $3.03 million (turned profitable from a loss of $2.14 million in the same period last year).
• Adjusted earnings per share: $0.09.

Cash Flow and Financing

• Operating Cash Flow: $3.4 million in surplus (vs. -$2.24 million in the same period last year).
• Cash and cash equivalents: $95.5 million (an increase of $30 million from the end of the previous period).

Business Progress

1. New Orders:
   • Received $127 million in new orders in the first quarter.
   • Including the first ship protection system contract with the Alliance Navy and a third order from Inox Wind for a 3 MW ECS (electrical control system).
2. Order backlog:
   • The 12-month order backlog was $160 million, with a total order backlog of $250 million.
3. Business Diversification:
   • Continued growth in grid technology for the industrial and military sectors.

Future Guidance

• FY2025 2nd Quarter Forecast:
  • Sales: $38-$42 million.
  • Net loss: up to $1.7 million ($0.05 loss per share).
  • Adjusted net income/loss: Break even to a slight surplus is projected.
  • Operating Cash Flow: Break even or $2 million.

AMSC is improving its profitability while innovating and diversifying in the energy sector. In particular, the company's growth is expected to be fueled by increasing demand for grid technology in industrial and military applications.

American Superconductor (AMSC) Q2 2024 Financial Results Summary

Date of announcement: 24/10/31

Sales and Revenues

• total sales: $54.47 million (60% increase over the same period last year).
  • Grid Division: $46.93 million (65% increase over the same period last year).
  • Wind power sector: $7.53 million (up 37% from the same period last year).
• net income: $4.88 million (turned profitable from a loss of $2.48 million in the same period last year).
• Adjusted net income: $9.95 million (a significant increase over the same period last year).
• Net income per share:
  • GAAP basis: $0.13 (vs. -$0.09 in the same period last year).
  • Non-GAAP: $0.27, compared to nearly zero in the same period last year.

Costs and Expenses

• cost of sales: $38.86 million (53% increase over the same period last year).
• operating expenses: $16.37 million (+50% y/y)
  • R&D expenses and selling, general and administrative expenses increased.

Cash Flow and Financial Condition

• Operating Cash Flow: $13 million, compared with a loss of $22 million in the same period last year.
• Cash and cash equivalents: $72.13 million (down from $95.52 million at the end of the previous period).
• Order backlog: Minimum order backlog of $200 million and total order backlog of $300 million within 12 months.

Major Business Developments

1. Increase in new orders:
   • Growing demand for new energy systems.
   • Progress was also made on defense-related contracts with the U.S. Navy.
2. Sectoral Growth:
   • Gridtec and the wind power sector performed well.
3. New Products and Business Expansion:
   • Secured competitive advantage by developing a powerful power management system.

Future Guidance

• FY2025 3Q Forecast:
  • Sales: $55-$60 million.
  • Net loss: up to $1 million ($0.03 loss per share).
  • Net income of over $2 million on a non-GAAP basis ($0.05 per share).

Important Points

AMSC continues to grow in the energy management and defense sectors. In particular, high demand and new contracts in the grid tech sector are contributing to earnings, and sustained growth is expected in the future. The company aims to expand in new markets by leveraging its competitive technology.

Which brokerage firms can I buy shares of AMSC?

We have listed the major brokerage firms that offer shares in American Superconductor (AMSC). At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of American Superconductor's (AMSC) business, its unique strengths, competitive advantages, and earnings growth.

AMSC is attracting even more attention for its advanced power technologies, including smart grids, amidst the focus on the increasing demand for electric power in conjunction with the spread of AI, and furthermore, the timing of the company's performance coincides with the beginning of its return to profitability.

The subject of electricity supply is an extremely important topic in the stock market, and renewable energy alone is not sufficient to meet demand.

Therefore,Small Reactor (SMR)and ... andnuclear fusion power generation (of electricity)and expectations for next-generation technologies are also growing.

I believe that AMSC can expect accelerated growth in its performance as cash flow and other financial improvements are seen in the future.

We will continue to focus on power-related themes, as they are likely to be a growth area with longevity.