Ameresco (AMRC) AI Stock Analysis

• Market Cap: $842.18M
• Dividend Yield: N/A
• Average Volume (3M): 530.20K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.61
• Revenue Growth: 30.13%
• EPS Growth: -7.60%
• Country: US
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): -0.11
• Shares Outstanding: 34,603,580
• 10 Day Avg. Volume: 394,955
• 30 Day Avg. Volume: 530,201
• PEG Ratio: 0.96
• Price to Book (P/B): 3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.45
• Enterprise Value/Market Cap: 4.49
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 14.50
• Enterprise Value/Ebitda: 5.10
• 1Y Price Target: $19.00
• Price Target Upside: 18.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $17.00 ▲(6.18%Upside)

Ameresco's overall score is bolstered by strong earnings call results and operational efficiency, despite high leverage and mixed technical indicators. The company's strategic growth in international markets and federal contract recovery stand out as key strengths, while margin pressures and leverage are notable risks.

Positive Factors

Contract Resumption

The project that had been canceled has now been rescoped and the other 2 contracts have now been unpaused.

Project Pipeline

Ameresco has effectively safe-harbored the ITC for projects coming online this year, with a healthy amount of the company's pipeline safe-harbored as well.

Negative Factors

Energy Assets Slowdown

Energy Assets slow down as expected, with a reduction in MWs deployed for the Energy Assets biz to ~110MWs for the full-year vs. 241MWs deployed previously.

Project Business Concerns

RNG economics and exposure on the Projects biz remain our top concerns.

Ameresco Business Overview & Revenue Model

Company Description

Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, and internationally. It offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. The company operates through U.S. Regions, U.S. Federal, Canada, and Non-Solar Distributed Generation segments. It designs, develops, engineers, and installs projects that reduce the energy, as well as operations and maintenance (O&M) costs of its customers' facilities. The company's projects primarily include various measures customized for the facility and designed to enhance the efficiency of building systems, such as heating, ventilation, cooling, and lighting systems. It also offers renewable energy solutions and services, such as the construction of small-scale plants that the company owns or develops for customers that produce electricity, gas, heat, or cooling from renewable sources of energy and O&M services; and electricity, processed renewable gas fuel, and heat or cooling produced from renewable sources of energy. In addition, the company sells photovoltaic (PV) solar energy products and systems, as well as provides consulting and enterprise energy management services; and owns and operates a wind power project located in Ireland. It serves the federal, state, and local governments, as well as healthcare and educational institutions, airports, public housing authorities and public universities, and commercial and industrial customers. As of December 31, 2021, the company owned and operated 147 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was founded in 2000 and is headquartered in Framingham, Massachusetts.

How the Company Makes Money

Ameresco makes money primarily through the design, construction, and installation of energy efficiency and renewable energy projects. The company's revenue streams include energy savings performance contracts (ESPCs), where it finances and implements energy-saving projects and is paid through the savings generated over time. Additionally, Ameresco generates income from the sale of renewable energy credits (RECs), operations and maintenance services for energy assets, and the development and sale of renewable energy projects. Significant partnerships with government entities and private sector organizations play a crucial role in its earnings by providing a steady pipeline of projects and opportunities for long-term service agreements.

Ameresco Financial Statement Overview

Summary

Ameresco exhibits a stable revenue growth trajectory and operational efficiency, with strong EBIT and EBITDA margins. However, high leverage poses a risk, and while cash flow has improved, past volatility necessitates careful liquidity management.

Income Statement

Ameresco's TTM revenue growth rate indicates a positive trend, with a moderate increase from the previous year. The gross profit margin stands at 14.3%, reflecting reasonable pricing power, but the net profit margin is lower at 2.8%, suggesting room for improvement in cost management. EBIT and EBITDA margins are healthy, which points to operational effectiveness.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.71, indicating significant leverage which could pose a risk if not managed carefully. However, the equity ratio is 25.1%, showing a solid equity base relative to total assets. Return on equity is moderate at 4.8%, suggesting average profitability for shareholders.

Cash Flow

Ameresco's free cash flow has improved to a positive value in the TTM period, a significant turnaround from previous negative figures. The operating cash flow to net income ratio of 1.36 is strong, indicating good cash generation relative to income. However, historical cash flow volatility and substantial financing activities necessitate careful liquidity management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.82B	1.77B	1.37B	1.82B	1.22B	1.03B
	Gross Profit
261.02M	256.09M	246.43M	290.83M	230.36M	187.55M
	EBIT
114.44M	108.75M	82.22M	132.99M	95.43M	71.50M
	EBITDA
205.94M	108.75M	150.39M	190.78M	142.05M	116.67M
	Net Income Common Stockholders
50.30M	56.76M	62.47M	94.93M	70.46M	54.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
71.59M	108.52M	79.27M	115.53M	50.45M	66.42M
	Total Assets
4.17B	4.16B	3.71B	2.88B	2.22B	1.75B
	Total Debt
1.78B	1.70B	1.55B	937.65M	497.53M	422.44M
	Net Debt
1.71B	1.59B	1.47B	822.11M	447.08M	356.02M
	Total Liabilities
3.12B	3.10B	2.74B	1.96B	1.47B	1.22B
	Stockholders Equity
1.01B	1.01B	901.98M	824.03M	704.26M	492.81M
Cash Flow		Free Cash Flow
-258.34M	-320.75M	-621.76M	-666.19M	-356.07M	-285.34M
	Operating Cash Flow
68.48M	117.60M	-69.99M	-338.29M	-172.30M	-102.58M
	Investing Cash Flow
-399.31M	-386.64M	-566.94M	-328.36M	-205.26M	-181.01M
	Financing Cash Flow
346.50M	278.54M	640.80M	730.23M	365.46M	305.17M

Ameresco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRC, the sentiment is Positive. The current price of 16.01 is above the 20-day moving average (MA) of 14.78, above the 50-day MA of 12.67, and below the 200-day MA of 22.00, indicating a neutral trend. The MACD of 0.80 indicates Negative momentum. The RSI at 63.21 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMRC.

Ameresco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSSC	78 Outperform	$1.02B	23.39	27.48%	1.98%	-1.05%	-2.78%
MEG	69 Neutral	$764.05M	―	-14.32%	―	10.92%	-57.13%
AMRC	69 Neutral	$842.18M	15.62	5.64%	―	30.13%	-7.60%
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
ERII	64 Neutral	$691.05M	34.50	10.35%	―	10.93%	6.99%
EVLV	58 Neutral	$905.26M	―	-33.80%	―	36.53%	52.99%
RDW	57 Neutral	$1.55B	―	-451.56%	―	1.36%	-213.86%

Ameresco Corporate Events

Ameresco Elects New Directors at Annual Meeting

On June 4, 2025, Ameresco held its Annual Meeting where stockholders elected Jennifer Miller and Nickolas Stavropoulos as class III directors until 2028, ratified the appointment of RSM US LLP as the independent registered public accounting firm for 2025, and approved an amendment to the Company’s Restated Certificate of Incorporation to align with new Delaware law provisions on officer exculpation. These decisions reflect the company’s ongoing governance and compliance efforts, potentially impacting its operational transparency and accountability.

The most recent analyst rating on (AMRC) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Ameresco stock, see the AMRC Stock Forecast page.