Ameresco Inc (AMRC, Financial), a prominent player in the energy efficiency solutions sector, has recently witnessed a significant uptick in its stock price. Over the past week, the company's shares have surged by an impressive 38.31%, and over the last three months, they have gained 26.57%. Currently, Ameresco's market capitalization stands at $1.51 billion, with a stock price of $28.93. Despite these gains, the GF Value, which is $53.84, suggests a possible value trap, indicating that investors should think twice before making an investment decision. This valuation has remained consistent from three months ago when the GF Value was $53.88.
Company Overview
Ameresco Inc, based in North America and Europe, specializes in delivering comprehensive energy efficiency solutions. The company's operations span across various segments including U.S. Regions, U.S. Federal, Canada, Alternative Fuels, Non-Solar DG, and All Other, with the majority of its revenue derived from the U.S. Regions segment. Ameresco's offerings include not only energy efficiency projects but also solar energy products and systems, which encompass PV panels, solar regulators, and more, aimed at reducing operational and maintenance costs for a diverse range of institutional, commercial, and industrial entities.
Profitability Insights
Ameresco's financial health is robust, with a Profitability Rank of 8/10, indicating high profitability relative to its peers. The company's Operating Margin is 6.17%, which is better than 56.82% of 1,656 companies in the industry. Additionally, Ameresco's Return on Equity (ROE) and Return on Assets (ROA) stand at 7.32% and 1.94% respectively, showcasing its ability to generate profits from its equity and asset investments. The Return on Invested Capital (ROIC) is also commendable at 5.30%. Over the past decade, Ameresco has maintained profitability, outperforming 99.94% of its peers.
Growth Trajectory
The company's Growth Rank is a perfect 10/10, reflecting exceptional growth in revenue and profitability. Ameresco's 3-Year and 5-Year Revenue Growth Rates per Share are 7.00% and 12.60% respectively, indicating sustained growth over time. Future revenue and EPS estimates are even more promising, with a projected increase of 13.31% and 25.00% respectively over the next 3 to 5 years. These figures highlight Ameresco's potential for continued expansion and profitability.
Investor Interest
Notable investors in Ameresco include Jeremy Grantham (Trades, Portfolio), holding 4,040,359 shares, and First Eagle Investment (Trades, Portfolio), with 117,531 shares. These significant investments underscore the confidence these seasoned investors have in Ameresco's business model and future prospects.
Competitive Landscape
Ameresco faces competition from companies like NV5 Global Inc (NVEE, Financial), Granite Construction Inc (GVA, Financial), and Primoris Services Corp (PRIM, Financial), with market caps of $1.51 billion, $2.66 billion, and $2.54 billion respectively. This competitive environment challenges Ameresco to continuously innovate and improve its offerings to maintain its market position.
Conclusion
Ameresco Inc's recent stock performance and solid financial metrics paint a picture of a company on the rise. Despite the GF Value suggesting caution, the company's consistent profitability, robust growth metrics, and strong investor interest position it as a potentially attractive investment. However, investors should conduct thorough research and consider market conditions and future growth prospects before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
