Is AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC) Halal?

NASDAQ Industrials United States $1.6B
✓ HALAL
Confidence: 95/100
AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 0.3% against the AAOIFI threshold of 30%, AMERICAN SUPERCONDUCTOR CORP /DE/ comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Industrial Machinery), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 0.3%
/ 30%
6.0%
/ 30%
3.5%
/ 30%
1.66%
/ 5%
✓ HALAL
DJIM 0.3%
/ 33%
6.0%
/ 33%
3.5%
/ 33%
1.66%
/ 5%
✓ HALAL
MSCI 1.1%
/ 33%
25.6%
/ 33%
14.9%
/ 33%
1.66%
/ 5%
✓ HALAL
S&P 0.3%
/ 33%
6.0%
/ 33%
3.5%
/ 33%
1.66%
/ 5%
✓ HALAL
FTSE 1.1%
/ 33%
25.6%
/ 33%
14.9%
/ 50%
1.66%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
11.1
Forward: 31.9
EPS
$3.04
P/B Ratio
3.0
EV/EBITDA
65.7
EV: $1.5B
Revenue
$223M
Growth: 21.4%
Beta
3.1
High volatility
Current Ratio
2.7

Profitability

Gross Margin 30.9%
Operating Margin 6.2%
Net Margin 46.7%
Return on Equity (ROE) 35.8%
Return on Assets (ROA) 2.0%

Cash Flow & Balance Sheet

Operating Cash Flow$28M
Free Cash Flow$26M
Total Debt$3M
Debt-to-Equity2.1
Current Ratio2.7
Total Assets$311M

Price & Trading

Last Close$32.31
50-Day MA$31.56
200-Day MA$41.22
Avg Volume1.0M
Beta3.1
52-Week Range
$13.98
$70.49

About AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC)

CEO
Mr. Daniel Patrick McGahn
Employees
569
Sector
Industrials
Industry
Specialty Industrial Machinery
Country
United States
Exchange
NASDAQ
Market Cap
$1.6B
Currency
USD

American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. It operates through Grid and Wind segments. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. The company provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship's magnetic signature; and Onboard power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. The company also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment's design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. American Superconductor Corporation was incorporated in 1987 and is headquartered in Ayer, Massachusetts.

Purification Calculator

As a halal stock with 1.66% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is AMERICAN SUPERCONDUCTOR CORP /DE/ (AMSC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), AMERICAN SUPERCONDUCTOR CORP /DE/ is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is AMERICAN SUPERCONDUCTOR CORP /DE/'s debt ratio?

AMERICAN SUPERCONDUCTOR CORP /DE/'s debt ratio is 0.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.1%.

Does AMERICAN SUPERCONDUCTOR CORP /DE/ require dividend purification?

Yes, AMERICAN SUPERCONDUCTOR CORP /DE/ has an impermissible income ratio of 1.66%, which means 1.66% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are AMERICAN SUPERCONDUCTOR CORP /DE/'s key financial metrics?

AMERICAN SUPERCONDUCTOR CORP /DE/ has a market capitalization of $1.6B, trailing P/E ratio of 11.1, and revenue of $223M. The company maintains a gross margin of 30.9% and a net margin of 46.7%. Return on equity stands at 35.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.