Ameresco (AMRC) AI Stock Analysis

• Market Cap: $1.83B
• Dividend Yield: N/A
• Average Volume (3M): 583.69K
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.57
• 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: 483,019
• 30 Day Avg. Volume: 583,692
• 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: 1.96
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 12.98
• Enterprise Value/Ebitda: 15.39
• 1Y Price Target: $40.17
• Price Target Upside: 15.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $33.00 ▼(-4.93% Downside)

Ameresco's overall score is driven by strong earnings call results and revenue growth, but is tempered by financial risks from high leverage and negative cash flows. Technical analysis indicates weak momentum, and valuation suggests the stock is relatively expensive.

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 primarily generates revenue through a combination of energy efficiency services, renewable energy projects, and ongoing operations and maintenance contracts. The company earns money by implementing energy-saving solutions for its clients, which often involve upfront capital investments that are then recouped through energy savings over time. Key revenue streams include performance-based contracts where Ameresco is compensated based on the energy savings achieved, as well as long-term power purchase agreements (PPAs) for renewable energy projects, such as solar and wind installations. Additionally, partnerships with government agencies and private sector clients enhance its earnings potential by creating opportunities for large-scale projects and financing options. The company's strong focus on sustainability and energy independence aligns with increasing demand for clean energy solutions, contributing positively to its financial growth.

Ameresco Financial Statement Overview

Summary

Ameresco shows strong revenue growth of 35.1%, but profitability and cash flow management are concerning. High leverage with a debt-to-equity ratio of 1.78 and negative cash flows pose financial risks, despite potential for growth.

Income Statement

Ameresco's income statement shows a strong revenue growth of 35.1% in the TTM period, indicating robust business expansion. The gross profit margin is stable at 14.67%, though slightly lower than previous years. Net profit margin is modest at 3.34%, reflecting some pressure on profitability. EBIT and EBITDA margins have decreased compared to historical data, suggesting increased operational costs or competitive pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.78, indicating significant leverage which could pose financial risk. Return on equity is relatively low at 6.07%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 23.85%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis highlights challenges with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is high at 5.20, indicating that free cash flow is significantly negative relative to net income. The operating cash flow to net income ratio is negative, reflecting cash flow difficulties despite positive net income.

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	233.09M	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: Positive
• Last Price: 34.71
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 34.71 is above the 20-day moving average (MA) of 34.20, below the 50-day MA of 36.42, and above the 200-day MA of 21.36, indicating a neutral trend. The MACD of -1.03 indicates Negative momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 93.61 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
WLDN	76 Outperform	$1.49B	36.22	16.38%	―	12.90%	72.61%
MYRG	74 Outperform	$3.48B	36.24	16.22%	―	-0.64%	168.51%
GVA	70 Outperform	$4.30B	28.95	16.87%	0.48%	6.87%	64.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TPC	63 Neutral	$3.56B	―	-2.31%	―	19.22%	78.83%
AMRC	61 Neutral	$1.83B	29.35	6.31%	―	12.22%	17.41%