Ameresco, Inc.

AMRC

Construction - Special Trade Contractors

Mkt Cap

$1.814B

PE

32.91

Debt

$1.551B

Cash

$148M

EV

$3.217B

FCF

-$662.2M

Market Cap

$1.814B

P/E Ratio

32.91

Debt

$1.551B

Cash

$148M

EV

$3.217B

FCF

-$662.2M

Charts data: {"Earnings":[{"time":"2014-12-30","value":10383000},{"time":"2015-12-30","value":-2551000},{"time":"2016-12-30","value":11997000},{"time":"2017-12-30","value":33508000},{"time":"2018-12-30","value":37577000},{"time":"2019-12-30","value":40301000},{"time":"2020-12-30","value":53931000},{"time":"2021-12-30","value":70342000},{"time":"2022-12-30","value":94810000},{"time":"2023-12-30","value":62362000}],"Sales":[{"time":"2014-12-30","value":593241000},{"time":"2015-12-30","value":630832000},{"time":"2016-12-30","value":651227000},{"time":"2017-12-30","value":717152000},{"time":"2018-12-30","value":787138000},{"time":"2019-12-30","value":866933000},{"time":"2020-12-30","value":1032275000},{"time":"2021-12-30","value":1215697000},{"time":"2022-12-30","value":1824422000},{"time":"2023-12-30","value":1374633000}],"Net Margins":[{"time":"2014-12-30","value":0.017502161853277166},{"time":"2015-12-30","value":-0.004043865878712557},{"time":"2016-12-30","value":0.018422147730361303},{"time":"2017-12-30","value":0.04672370710811655},{"time":"2018-12-30","value":0.04773877007589521},{"time":"2019-12-30","value":0.046486868074003415},{"time":"2020-12-30","value":0.052244799108764624},{"time":"2021-12-30","value":0.05786145725456261},{"time":"2022-12-30","value":0.05196714356656519},{"time":"2023-12-30","value":0.04536629049353536}],"Assets":[{"time":"2014-12-30","value":629659000},{"time":"2015-12-30","value":728743000},{"time":"2016-12-30","value":797281000},{"time":"2017-12-30","value":983951000},{"time":"2018-12-30","value":1161634000},{"time":"2019-12-30","value":1374013000},{"time":"2020-12-30","value":1750251000},{"time":"2021-12-30","value":2224821000},{"time":"2022-12-30","value":2876821000},{"time":"2023-12-30","value":3713776000}],"Stockholders Equity":[{"time":"2014-12-30","value":286307000},{"time":"2015-12-30","value":289542000},{"time":"2016-12-30","value":294306000},{"time":"2017-12-30","value":336620000},{"time":"2018-12-30","value":376875000},{"time":"2019-12-30","value":428856000},{"time":"2020-12-30","value":492813000},{"time":"2021-12-30","value":704264000},{"time":"2022-12-30","value":873031000},{"time":"2023-12-30","value":925886000}],"ROE":[{"time":"2014-12-30","value":0.03626526770215189},{"time":"2015-12-30","value":-0.008810466184525906},{"time":"2016-12-30","value":0.040763694929766975},{"time":"2017-12-30","value":0.09954251084308716},{"time":"2018-12-30","value":0.09970679933665008},{"time":"2019-12-30","value":0.09397326841643815},{"time":"2020-12-30","value":0.10943501896256795},{"time":"2021-12-30","value":0.0998801585768973},{"time":"2022-12-30","value":0.10859866373588109},{"time":"2023-12-30","value":0.06735386429862855}],"ROA":[{"time":"2014-12-30","value":0.02088590808675807},{"time":"2015-12-30","value":0.009683797991884657},{"time":"2016-12-30","value":0.02982135533143271},{"time":"2017-12-30","value":0.038415530854686866},{"time":"2018-12-30","value":0.050875749160234636},{"time":"2019-12-30","value":0.03756441896837948},{"time":"2020-12-30","value":0.041051254934292285},{"time":"2021-12-30","value":0.042895136282873995},{"time":"2022-12-30","value":0.0462288060327702},{"time":"2023-12-30","value":0.022138653489063423}]}

Ameresco, Inc., a clean technology integrator, provides a portfolio of energy efficiency and renewable energy supply solutions in the United States, Canada, and internationally. The company operates through U.S. Regions, U.S. Federal, Canada, and Alternative Fuels segments. It offers energy efficiency, infrastructure upgrades, energy security and resilience, asset sustainability, and renewable energy solutions for businesses and organizations. 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. 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, 2022, the company owned and operated 162 small-scale renewable energy plants and solar PV installations. Ameresco, Inc. was incorporated in 2000 and is headquartered in Framingham, Massachusetts.

Sector

10-Q
9/30/23
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10-K
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Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 36%

Earnings Stability 66%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-0.4%	1.8%	4.7%	4.8%	4.6%	5.2%	5.8%	5.2%	4.5%	3.9%
ROA	0.97%	3%	3.8%	5.1%	3.8%	4.1%	4.3%	4.6%	2.2%	2.1%
ROE	-0.88%	4.1%	10%	10%	9.4%	11%	10%	11%	6.7%	5.9%

What is the average Net Margin?

The average Net Margin over the past 5 years is +5.03%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.03%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +4.01%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.33%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +9.65%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.36%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-1.31	-1.41	-1.01	-1.57	-1.25	-1.35	-1.30	-1.40	-2.45	-2.34
Debt Equity	0.46	0.63	0.67	0.74	0.96	0.77	0.65	1.03	1.61	1.67
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	85%	85%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -2.34.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.14.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.85.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	11%	12%	10%	-25%	0.69%
Net Income	27%	11%	5%	-34%	-20%
Stockholders Equity	18%	20%	23%	6.1%	2.4%
FCF	-	-	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +11.8%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.69%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +10.66%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -20.43%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +19.69%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.44%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +27.74%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.