American Superconductor Price To Sales vs. Profit Margin

AMSC Stock  USD 32.37  1.31  3.89%   
Considering American Superconductor's profitability and operating efficiency indicators, American Superconductor may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess American Superconductor's ability to earn profits and add value for shareholders.

American Superconductor Price To Sales Ratio

2.62

At present, American Superconductor's Operating Cash Flow Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 104.59, whereas Price To Sales Ratio is forecasted to decline to 2.62. At present, American Superconductor's Total Other Income Expense Net is projected to increase significantly based on the last few years of reporting. The current year's Non Operating Income Net Other is expected to grow to about 4.6 M, whereas Operating Income is forecasted to decline to (11.9 M).
For American Superconductor profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Superconductor to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Superconductor utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Superconductor's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Superconductor over time as well as its relative position and ranking within its peers.
  

American Superconductor's Revenue Breakdown by Earning Segment

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Is Electrical Components & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Superconductor. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Superconductor listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.03)
Revenue Per Share
5.225
Quarterly Revenue Growth
0.602
Return On Assets
0.0082
Return On Equity
(0.01)
The market value of American Superconductor is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Superconductor's value that differs from its market value or its book value, called intrinsic value, which is American Superconductor's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Superconductor's market value can be influenced by many factors that don't directly affect American Superconductor's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Superconductor's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Superconductor is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Superconductor's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

American Superconductor Profit Margin vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining American Superconductor's current stock value. Our valuation model uses many indicators to compare American Superconductor value to that of its competitors to determine the firm's financial worth.
American Superconductor is number one stock in price to sales category among its peers. It is rated below average in profit margin category among its peers . At present, American Superconductor's Price To Sales Ratio is projected to drop slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Superconductor's earnings, one of the primary drivers of an investment's value.

American Profit Margin vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

American Superconductor

P/S

 = 

MV Per Share

Revenue Per Share

 = 
7.25 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

American Superconductor

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

American Profit Margin Comparison

American Superconductor is currently under evaluation in profit margin category among its peers.

American Superconductor Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in American Superconductor, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Superconductor will eventually generate negative long term returns. The profitability progress is the general direction of American Superconductor's change in net profit over the period of time. It can combine multiple indicators of American Superconductor, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.6 M1.7 M
Operating Income-11.4 M-11.9 M
Income Before Tax-10.8 M-11.3 M
Total Other Income Expense Net566 K594.3 K
Net Loss-11.1 M-11.7 M
Income Tax Expense309 K293.6 K
Net Loss-22.1 M-23.2 M
Net Loss-11.1 M-11.7 M
Non Operating Income Net Other4.4 M4.6 M
Interest Income1.3 M973.9 K
Net Interest Income1.3 M1.4 M
Change To Netincome-1.3 M-1.2 M
Net Loss(0.37)(0.39)
Income Quality(0.19)(0.18)
Net Income Per E B T 1.03  0.66 

American Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on American Superconductor. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Superconductor position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Superconductor's important profitability drivers and their relationship over time.

Use American Superconductor in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Superconductor position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Superconductor will appreciate offsetting losses from the drop in the long position's value.

American Superconductor Pair Trading

American Superconductor Pair Trading Analysis

The ability to find closely correlated positions to American Superconductor could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Superconductor when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Superconductor - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Superconductor to buy it.
The correlation of American Superconductor is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Superconductor moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Superconductor moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Superconductor can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your American Superconductor position

In addition to having American Superconductor in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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When determining whether American Superconductor offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Superconductor's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of American Superconductor Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Superconductor Stock:
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You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
To fully project American Superconductor's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Superconductor at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Superconductor's income statement, its balance sheet, and the statement of cash flows.
Potential American Superconductor investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although American Superconductor investors may work on each financial statement separately, they are all related. The changes in American Superconductor's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Superconductor's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.