American Superconductor Corporation

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 6.0× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 6.0× operating cash profit, lifted by income outside the core business.

  American Superconductor's reported profit is 6.0× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.American Superconductor's reported profit is 6.0× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Shareholders being diluted. Shares outstanding up 64% from March 2023 to July 2026.

  American Superconductor had 64% more shares at July 2026 than at March 2023, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.American Superconductor had 64% more shares at July 2026 than at March 2023, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock pay outran buybacks. Stock-based pay expense $28M vs $0M spent repurchasing shares over the 3 fiscal years to FY Mar 2026.

  Over three fiscal years American Superconductor recorded $28M of stock-based pay expense and spent $0M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years American Superconductor recorded $28M of stock-based pay expense and spent $0M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Profit isn't fully turning into cash. Free cash flow is only 15% of reported profit.

  Free cash flow is only 15% of reported profit. That usually means heavy spending on facilities and equipment, or cash tied up in inventory and unpaid bills. Worth checking whether it's a phase of investment or a lasting pattern.