Ameresco (AMRC) AI Stock Analysis

• Market Cap: $987.90M
• Dividend Yield: N/A
• Average Volume (3M): 676.21K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.57
• Revenue Growth: 30.13%
• EPS Growth: -7.60%
• Country: US
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 94
• Industry: Engineering & Construction
• EPS (TTM): -0.11
• Shares Outstanding: 34,603,580
• 10 Day Avg. Volume: 1,132,134
• 30 Day Avg. Volume: 676,214
• PEG Ratio: -5.26
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.75
• Enterprise Value/Market Cap: 2.71
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 10.25
• Enterprise Value/Ebitda: 3.61
• 1Y Price Target: $20.86
• Price Target Upside: 11.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $20.00 ▲(6.50%Upside)

Ameresco's strong technical momentum and solid financial performance are key strengths, bolstered by significant project backlog growth and international expansion. However, high leverage and the absence of a dividend yield, coupled with margin pressures, temper the overall score. The stock's valuation is reasonable, but careful management of leverage and margins is essential for long-term sustainability.

Positive Factors

Operational Preparedness

Much of the equipment for carrying ongoing projects and energy assets in development has already been purchased and is in the country or already on the worksites, which shields the company from near-term price increases.

Project Resumption

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

Revenue Growth

Ameresco reported 4Q24 sales that exceeded expectations, driven by growth across all business lines, especially Projects and Energy Assets.

Negative Factors

Government Contracts

AMRC reported a cautious 4Q, with government contracts canceled or delayed despite only a few months under the new administration.

Guidance and Performance

'25 guidance was well below expectations while the last SCE project has yet to be completed.

Project Cancellations

Concerns on the Project biz seem to have been validated after mgmt. announced a cancellation on one project and a 'pause' on two other contracts.

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 demonstrates stable revenue growth and operational efficiency, with positive cash flow improvements. However, the high debt-to-equity ratio presents a leverage risk, and net profit margins indicate room for cost management improvement.

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

Ameresco Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 18.78 is above the 20-day moving average (MA) of 17.14, above the 50-day MA of 15.79, and below the 200-day MA of 19.77, indicating a neutral trend. The MACD of 1.02 indicates Negative momentum. The RSI at 71.62 is Negative, neither overbought nor oversold. The STOCH value of 73.44 is Neutral, 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
NVEE	80 Outperform	$1.55B	47.19	3.79%	―	8.65%	-22.72%
GVA	75 Outperform	$4.15B	42.15	12.75%	0.55%	11.42%	247.33%
WLDN	74 Outperform	$1.19B	48.65	10.78%	―	12.40%	81.98%
MYRG	70 Neutral	$2.96B	87.52	5.71%	―	-7.33%	-57.86%
AMRC	67 Neutral	$987.90M	18.51	5.64%	―	30.13%	-7.60%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
TPC	63 Neutral	$2.59B	―	-12.28%	―	8.95%	-41.32%

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.