Ameresco (AMRC) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: N/A
• Average Volume (3M): 695.83K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.58
• Revenue Growth: 12.22%
• EPS Growth: 17.41%
• Country: US
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.35
• Shares Outstanding: 34,797,455
• 10 Day Avg. Volume: 552,262
• 30 Day Avg. Volume: 695,834
• PEG Ratio: -2.17
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -3.83
• Enterprise Value/Market Cap: 1.86
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 12.98
• Enterprise Value/Ebitda: 15.34
• 1Y Price Target: $37.83
• Price Target Upside: 7.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $38.00 ▲(7.74% Upside)

Ameresco's overall score reflects strong earnings call performance and revenue growth, offset by financial risks from high leverage and negative cash flows. Technical indicators and valuation suggest caution, with potential bearish momentum and overvaluation concerns.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and market demand, supporting long-term financial health and strategic goals.

Project Backlog

A strong project backlog provides revenue visibility and stability, ensuring sustained business operations and growth opportunities.

Energy Asset Expansion

Expanding energy assets enhances Ameresco's market position and revenue base, contributing to long-term growth in renewable energy solutions.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows can strain liquidity and hinder the company's ability to fund operations and growth initiatives without external financing.

Profitability Challenges

Low profitability margins suggest challenges in cost management or competitive pressures, which could impact long-term financial performance.

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 generates revenue through multiple streams, primarily from energy efficiency projects, renewable energy installations, and operations and maintenance services. The company earns a significant portion of its income from performance-based contracts, where it partners with clients to implement energy-saving measures and shares in the cost savings achieved. Additionally, Ameresco benefits from federal and state incentives for renewable energy projects, which enhance profitability. Key partnerships with government agencies and private sector clients allow Ameresco to secure long-term contracts, providing stable revenue. The company's focus on energy-as-a-service models also contributes to its revenue, enabling clients to access renewable energy without upfront capital investments.

Ameresco Financial Statement Overview

Summary

Ameresco shows moderate financial health with stable revenue growth and profitability. However, high leverage and negative cash flows present potential risks. The company should focus on improving operational efficiency and cash flow management to enhance financial stability.

Income Statement

Ameresco's income statement shows moderate growth and profitability. The TTM revenue growth rate of 1.88% indicates a slight increase in sales, while the gross profit margin of 14.48% and net profit margin of 3.13% suggest stable profitability. However, the declining EBIT and EBITDA margins from previous years highlight potential challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable but leveraged position. The debt-to-equity ratio of 1.08 in the TTM period indicates a high level of debt compared to equity, which could pose financial risks. The return on equity of 4.93% shows moderate profitability for shareholders, while the equity ratio of 40.77% suggests a balanced asset structure.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio of 17.99 indicates some ability to cover net income, but the negative growth in free cash flow highlights potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.77B	1.37B	1.82B	1.22B	1.03B
Gross Profit	276.40M	256.09M	246.43M	290.83M	230.36M	187.55M
EBITDA	233.87M	194.80M	150.39M	190.63M	141.93M	116.58M
Net Income	63.00M	56.76M	62.47M	94.93M	70.46M	54.05M
Balance Sheet
Total Assets	4.43B	4.16B	3.71B	2.88B	2.22B	1.75B
Cash, Cash Equivalents and Short-Term Investments	94.55M	108.52M	79.27M	115.53M	50.45M	66.42M
Total Debt	2.46B	1.70B	1.55B	937.65M	497.53M	873.15M
Total Liabilities	3.33B	3.11B	2.74B	1.96B	1.47B	1.22B
Stockholders Equity	1.06B	1.01B	901.98M	824.03M	704.26M	492.81M
Cash Flow
Free Cash Flow	-294.81M	-320.75M	-621.76M	-666.19M	-356.07M	-285.34M
Operating Cash Flow	-19.09M	117.60M	-69.99M	-338.29M	-172.30M	-102.58M
Investing Cash Flow	-288.60M	-386.64M	-566.94M	-328.36M	-205.26M	-181.01M
Financing Cash Flow	318.93M	313.94M	640.80M	730.23M	365.46M	305.17M

Ameresco Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMRC, the sentiment is Neutral. The current price of 35.27 is below the 20-day moving average (MA) of 39.71, above the 50-day MA of 34.80, and above the 200-day MA of 20.55, indicating a neutral trend. The MACD of 0.40 indicates Positive momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 28.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMRC.

Ameresco Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MYRG	74 Outperform	$3.62B	37.72	16.22%	―	-0.64%	168.51%
WLDN	71 Outperform	$1.38B	35.58	16.38%	―	12.90%	72.61%
GVA	70 Outperform	$4.50B	34.36	16.87%	0.53%	6.87%	64.56%
AMRC	64 Neutral	$1.93B	29.87	6.31%	―	12.22%	17.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TPC	63 Neutral	$3.55B	―	-2.31%	―	19.22%	78.83%