We feel now is a pretty good time to analyse American Superconductor Corporation's (NASDAQ:AMSC) business as it appears the company may be on the cusp of a considerable accomplishment. American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The US$1.3b market-cap company's loss lessened since it announced a US$11m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$865k, as it approaches breakeven. The most pressing concern for investors is American Superconductor's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 3 of the American Electrical analysts is that American Superconductor is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$4.4m in 2025. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 91% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for American Superconductor given that this is a high-level summary, but, take into account that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one aspect worth mentioning. American Superconductor currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of American Superconductor to cover in one brief article, but the key fundamentals for the company can all be found in one place – American Superconductor's company page on Simply Wall St. We've also compiled a list of key factors you should look at:

1. Valuation: What is American Superconductor worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether American Superconductor is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on American Superconductor's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.