Ameresco, Inc.
Ameresco, Inc. Fundamental Analysis
Ameresco, Inc. (AMRC) shows moderate financial fundamentals with a PE ratio of 29.64, profit margin of 2.29%, and ROE of 4.24%. The company generates $1.9B in annual revenue with strong year-over-year growth of 28.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMRC's fundamental strength across five key dimensions:
Efficiency Score
WeakAMRC struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMRC shows balanced valuation metrics.
Growth Score
ModerateAMRC shows steady but slowing expansion.
Financial Health Score
ModerateAMRC shows balanced financial health with some risks.
Profitability Score
WeakAMRC struggles to sustain strong margins.
Key Financial Metrics
Is AMRC Expensive or Cheap?
P/E Ratio
AMRC trades at 29.64 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AMRC's PEG of -0.99 indicates potential undervaluation.
Price to Book
The market values Ameresco, Inc. at 1.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.36 times EBITDA. This is generally considered low.
How Well Does AMRC Make Money?
Net Profit Margin
For every $100 in sales, Ameresco, Inc. keeps $2.29 as profit after all expenses.
Operating Margin
Core operations generate 6.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.24 in profit for every $100 of shareholder equity.
ROA
Ameresco, Inc. generates $0.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ameresco, Inc. generates limited operating cash flow of $-80.48M, signaling weaker underlying cash strength.
Free Cash Flow
Ameresco, Inc. generates weak or negative free cash flow of $-332.48M, restricting financial flexibility.
FCF Per Share
Each share generates $-6.29 in free cash annually.
FCF Yield
AMRC converts -25.26% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AMRC Stacks Against Its Sector Peers
| Metric | AMRC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.64 | 25.83 | Worse (Expensive) |
| ROE | 4.24% | 1278.00% | Weak |
| Net Margin | 2.29% | -43774.00% (disorted) | Weak |
| Debt/Equity | 1.80 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.51 | 10.63 | Neutral |
| ROA | 0.98% | -1539613.00% (disorted) | Weak |
AMRC outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ameresco, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.58%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
13.60%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
153.28%
Industry Style: Cyclical, Value, Infrastructure
High Growth