AMERICAN SUPERCONDUCTOR CP's gross profit margin for the third quarter of its fiscal year 2014 has significantly decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. AMERICAN SUPERCONDUCTOR CP has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 25.83% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||21.25||20.56|
|Net Income ($mil)||-6.35||-8.42|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||37.49||36.8|
|Total Assets ($mil)||156.99||178.37|
|Total Debt ($mil)||8.56||22.68|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||25.95||35.63|
|Return on Assets||-43.31||-29.89|
|Return on Equity||-82.44||-47.94|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||9.57||6.81|
|Div / share||0.0||0.0|
|Book value / share||8.62||16.32|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||300880.0||722647.0|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.75 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 3.83. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, AMERICAN SUPERCONDUCTOR CP proves to trade at a discount to investment alternatives within the industry.
|AMSC NM||Peers 26.12||AMSC NM||Peers 16.89|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
AMSC's P/E is negative making this valuation measure meaningless.
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AMSC's P/CF is negative making the measure meaningless.
|AMSC NM||Peers 19.51||AMSC NA||Peers 2.54|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
AMSC's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|AMSC 0.75||Peers 3.83||AMSC 4.35||Peers -10.25|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AMSC is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AMSC is expected to have an earnings growth rate that significantly exceeds its peers.
|AMSC 1.00||Peers 2.41||AMSC -30.10||Peers 3.72|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AMSC is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
AMSC significantly trails its peers on the basis of sales growth
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV