Ameresco, Inc. (NYSE: AMRC)

Sector: Industrials Industry: Engineering & Construction CIK: 0001488139
Market Cap 1.59 Bn
P/B 1.51
P/E 25.24
P/S 0.84
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...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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. 62.71 Bn 61.60 2.31 6.02 Bn
2 FER Ferrovial SE 48.08 Bn 14.25 5.05 -
3 FIX Comfort Systems Usa Inc 35.76 Bn 42.69 4.30 0.39 Bn
4 EME EMCOR Group, Inc. 29.29 Bn 25.91 1.80 0.42 Bn
5 APG APi Group Corp 17.37 Bn 111.36 2.27 3.05 Bn
6 MTZ Mastec Inc 17.01 Bn 51.39 1.24 2.77 Bn
7 J Jacobs Solutions Inc. 16.94 Bn 58.56 1.41 2.71 Bn
8 BLD TopBuild Corp 13.35 Bn 23.52 2.55 3.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.75 1.61
EV to Cash from Ops. EV/CFO -173.26 6.94
EV to Debt EV to Debt 1.70 11.81
EV to EBIT EV/EBIT 24.28 17.80
EV to EBITDA EV/EBITDA 14.41 13.77
EV to Free Cash Flow [EV/FCF] EV/FCF -8.20 55.77
EV to Market Cap EV to Market Cap 2.08 1.20
EV to Revenue EV/Rev 1.76 1.65
Price to Book Value [P/B] P/B 1.51 5.81
Price to Earnings [P/E] P/E 25.24 35.89
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.51
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 25.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.24
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.05
Interest Coverage Int. cover (Qtr) 1.43 80.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 14.97 -166.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4.15 637.72
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.87
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 41.12 92.47
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 28.75 8.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 39.91 85.34
EBT Growth (1y) % EBT 1y % (Qtr) 16.95 42.07
EPS Growth (1y) % EPS 1y % (Qtr) 16.50 43.76
FCF Growth (1y) % FCF 1y % (Qtr) -5.51 -20.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.90 32.46
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 1.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.05
Cash Ratio Cash Ratio (Qtr) 0.21 0.38
Current Ratio Curr Ratio (Qtr) 1.51 1.55
Debt to Equity Ratio Debt/Equity (Qtr) 1.85 0.89
Interest Cover Ratio Int Coverage (Qtr) 1.43 80.15
Times Interest Earned Times Interest Earned (Qtr) 1.43 80.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.70 0.40
EBIT Margin % EBIT Margin % (Qtr) 7.23 -2.31
EBT Margin % EBT Margin % (Qtr) 2.17 -4.59
Gross Margin % Gross Margin % (Qtr) 14.70 20.38
Net Profit Margin % Net Margin % (Qtr) 3.30 -5.96