Ameresco, Inc. (AMRC) Stock Analysis and Metrics

Sector: Industrials Industry: Engineering & Construction CIK: 0001488139

P/B 1.47

P/E 24.67

P/S 0.82

Market Cap 1.55 Bn

ROIC (Qtr) 5.33

Div Yield % 0.00

Rev 1y % (Qtr) 5.01

Total Debt (Qtr) 1.95 Bn

Debt/Equity (Qtr) 1.85

About

Ameresco, Inc. (AMRC) is a prominent player in the clean technology and renewable energy industry. The company's primary business activities revolve around the development, design, financing, construction, and installation of energy efficiency and renewable energy solutions. These solutions are aimed at delivering cost and energy savings, while simultaneously enhancing the operations, energy security, infrastructure, and resiliency of various facilities. Ameresco's revenue is generated through a diverse range of products and services. These include...

Ameresco, Inc. (AMRC) is a prominent player in the clean technology and renewable energy industry. The company's primary business activities revolve around the development, design, financing, construction, and installation of energy efficiency and renewable energy solutions. These solutions are aimed at delivering cost and energy savings, while simultaneously enhancing the operations, energy security, infrastructure, and resiliency of various facilities.

Ameresco's revenue is generated through a diverse range of products and services. These include energy efficiency measures such as water management, renewable energy, storage, and microgrids, as well as smart metering and controls, chillers, and boilers. The company also offers renewable energy solutions, including solar photovoltaic, combined heat and power, geothermal, renewable natural gas, wind power, and microgrid systems. Additionally, Ameresco provides energy infrastructure services, including smart building modernization and retrofits, design-build new construction, and integrated project design and implementation.

The company operates in a highly competitive industry, with key competitors including McKinstry, CM3 Building Solutions, CMTA, Inc., SitelogIQ, ABM Industries, Inc., Southland Industries, Energy Systems Group, LLC, Honeywell, Johnson Controls, NORESCO, Schneider Electric, Siemens Building Technologies, and Trane Technologies. Ameresco's competitive advantage lies in its comprehensive, independent offering of energy efficiency and renewable energy services, and the breadth and depth of its expertise.

Ameresco's customer base is diverse, serving federal, state, and local governments, educational and healthcare institutions, airports, public housing authorities, commercial and industrial customers, transportation and infrastructure, and utilities across the United States, Canada, and Europe. The company's largest 20 customers accounted for approximately 56.4% of its total revenues in 2023.

The company's business is organized by region, with each region performing key services under various lines of business. The reportable business segments include U.S. Regions, U.S. Federal, Canada, Alternative Fuels, Europe, and All Other. The U.S. Federal segment offers energy efficiency products and services, including design, engineering, and installation of equipment and other measures to improve the efficiency and control the operation of a facility's energy infrastructure, renewable energy solutions, and services, and development and construction of small-scale plants that produce electricity, gas, heat, or cooling from renewable sources of energy.

Ameresco's Alternative Fuels segment sells electricity and processed RNG derived from biomethane from small-scale plants that the company owns and operates and provides O&M services for customer-owned small-scale RNG plants. The company's Europe segment offers energy efficiency products and services, including design, engineering, and installation of equipment and other measures to improve the efficiency and control the operation of a facility's energy infrastructure, renewable energy solutions, and services.

In terms of brand names and trade names, Ameresco's portfolio includes a wide range of offerings. However, the document does not provide a specific list of these. Therefore, this section will be skipped to maintain accuracy and avoid speculation.

Stock Price Chart

Analysis

Pros

Tangible assets of 4.35B provide exceptional 46.88x coverage of deferred revenue 92.78M, showing strong service capability backing.
Cash position of 193.06M provides exceptional 28.97x coverage of minority interest expenses 6.66M, indicating strong liquidity.
Robust tangible asset base of 4.35B provides 9.04x coverage of working capital 481.20M, indicating strong operational backing.
Cash reserves of 193.06M provide ample 3.89x coverage of acquisition spending 49.65M, enabling strategic growth opportunities.
Tangible assets of 4.35B provide robust 22.35x coverage of other current liabilities 194.55M, indicating strong asset backing.

Cons

Operating cash flow of (19.09M) barely covers its investment activities of (289.53M), with a coverage ratio of 0.07, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Operating cash flow of (19.09M) provides insufficient coverage of deferred revenue obligations of 92.78M, which is -0.21x, raising concerns about future service delivery capabilities.
The company's operating cash flow of (19.09M) shows concerning coverage of stock compensation expenses of 14.10M, with a -1.35 ratio indicating potential earnings quality issues.
High receivables of 1.51B relative to inventory of 12.79M (118.13 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
Free cash flow of (403.48M) provides weak coverage of capital expenditures of 384.39M, with a -1.05 ratio suggesting additional external financing needs for growth initiatives.

Peer Comparison

Companies in the Engineering & Construction

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	PWR	Quanta Services, Inc.	65.07 Bn	63.92	2.39	6.02 Bn
2	FER	Ferrovial SE	48.89 Bn	14.49	5.13	-
3	FIX	Comfort Systems Usa Inc	34.27 Bn	40.92	4.12	0.39 Bn
4	EME	EMCOR Group, Inc.	28.31 Bn	25.04	1.74	0.42 Bn
5	MTZ	Mastec Inc	16.96 Bn	51.22	1.23	2.77 Bn
6	APG	APi Group Corp	16.26 Bn	104.23	2.12	3.05 Bn
7	J	Jacobs Solutions Inc.	16.22 Bn	56.05	1.35	2.71 Bn
8	ACM	Aecom	13.03 Bn	23.20	0.81	3.23 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.74	1.59
EV to Cash from Ops.	-171.36	7.03
EV to Debt	1.68	11.96
EV to EBIT	24.01	17.03
EV to EBITDA	14.25	13.31
EV to Free Cash Flow [EV/FCF]	-8.11	57.73
EV to Market Cap	2.11	1.27
EV to Revenue	1.74	1.63
Price to Book Value [P/B]	1.47	5.93
Price to Earnings [P/E]	24.67	35.53

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	2.51
Dividend Payout Ratio %	0.00	25.81
Dividend per Basic Share	0.00	0.24
FCF Dividend Payout Ratio %	0.00	4.05
Interest Coverage	1.43	80.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	14.97	-166.01
Cash and Equivalents Growth (1y) %	4.15	637.72
Dividend Growth (1y) %	0.00	5.87
EBIAT Growth (1y) %	41.12	92.47
EBITDA Growth (1y) %	28.75	8.04
EBIT Growth (1y) %	39.91	85.34
EBT Growth (1y) %	16.95	42.07
EPS Growth (1y) %	16.50	43.76
FCF Growth (1y) %	-5.51	-20.95
Gross Profit Growth (1y) %	4.90	32.46

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.43	1.14
Cash Payout Ratio	0.00	0.05
Cash Ratio	0.21	0.38
Current Ratio	1.51	1.55
Debt to Equity Ratio	1.85	0.89
Interest Cover Ratio	1.43	80.15
Times Interest Earned	1.43	80.15

Profitability

Metric	Value	Industry
EBITDA Margin %	12.70	0.40
EBIT Margin %	7.23	-2.31
EBT Margin %	2.17	-4.59
Gross Margin %	14.70	20.38
Net Profit Margin %	3.30	-5.96

Ameresco, Inc. (NYSE: AMRC)