This company is growing 28% a year. So why are investors fleeing?
Record revenue, record orders, $153 million in cash. And the stock is 57% below last year's high. The market got this company wrong twice - and the second mistake is more dangerous for investors' money than the first.
Key points
The company reports record revenue, record orders and $153 million in cash, and the stock is 57% below last year's high
A screener shows a P/E around 10 and a net margin over 40%, but both numbers describe something different from what they seem
When an analyst asked about the share of data centers in the record orders, the company's CEO answered with a single sentence
A single order of $25 million would have brought in four times less last year, and the reason has nothing to do with demand
Bulios's conservative model puts fair value at $15.36, analysts are targeting $55 - that spread is itself a story
Two charts that contradict each other
American Superconductor $AMSC reported a quarter in early August that it never had in its thirty-year history. Revenue for the first quarter of fiscal 2026 reached a record $94.1 million, up 30% year over year. New orders exceeded $130 million, also a record. The company has $153 million in cash and generated $16 million in operating cash flow in three months, almost four times last year's figure.
But the stock price chart tells a different story. On October 15, 2025, the stock traded at $70.49. On February 5, 2026, it was selling for $24.87. Today it trades around $30.5, about 57% below the peak, with a market cap of roughly $1.4 billion.
So the business has never looked better and the stock has lost more than half its value. Someone is wrong. Either the market a year ago, when it pushed the stock to seventy dollars, or the market today. The answer is more uncomfortable: it was wrong in both cases, just differently each time. And understanding both mistakes is more valuable for an ordinary investor than any price target.