AMERESCO INC-CL A (AMRC) Stock Fundamental Analysis
NYSE:AMRC - New York Stock Exchange, Inc. - US02361E1082 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AMRC. AMRC was compared to 49 industry peers in the Construction & Engineering industry. Both the profitability and financial health of AMRC have multiple concerns. AMRC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AMRC had positive earnings in the past year.
In the past year AMRC had a positive cash flow from operations.
AMRC had positive earnings in each of the past 5 years.
AMRC had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
AMRC has a Return On Assets of 1.30%. This is comparable to the rest of the industry: AMRC outperforms 42.86% of its industry peers.
Looking at the Return On Equity, with a value of 5.35%, AMRC is in line with its industry, outperforming 48.98% of the companies in the same industry.
The Return On Invested Capital of AMRC (2.07%) is worse than 65.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AMRC is significantly below the industry average of 16.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 5.35% | ||
| ROIC | 2.07% |
ROA(3y)2.11%
ROA(5y)2.51%
ROE(3y)8%
ROE(5y)8.99%
ROIC(3y)3.15%
ROIC(5y)3.6%
1.3 Margins
With a Profit Margin value of 2.97%, AMRC perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
AMRC's Profit Margin has declined in the last couple of years.
AMRC's Operating Margin of 4.84% is in line compared to the rest of the industry. AMRC outperforms 48.98% of its industry peers.
In the last couple of years the Operating Margin of AMRC has declined.
Looking at the Gross Margin, with a value of 14.31%, AMRC is in line with its industry, outperforming 40.82% of the companies in the same industry.
In the last couple of years the Gross Margin of AMRC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.84% | ||
| PM (TTM) | 2.97% | ||
| GM | 14.31% |
OM growth 3Y-16.55%
OM growth 5Y-4.81%
PM growth 3Y-17.89%
PM growth 5Y-8.97%
GM growth 3Y-8.6%
GM growth 5Y-5.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AMRC is destroying value.
Compared to 1 year ago, AMRC has more shares outstanding
AMRC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AMRC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that AMRC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.04, AMRC is doing worse than 71.43% of the companies in the same industry.
AMRC has a Debt/Equity ratio of 1.55. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.55, AMRC is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.22
WACC9.53%
2.3 Liquidity
AMRC has a Current Ratio of 1.57. This is a normal value and indicates that AMRC is financially healthy and should not expect problems in meeting its short term obligations.
AMRC has a Current ratio of 1.57. This is in the better half of the industry: AMRC outperforms 77.55% of its industry peers.
A Quick Ratio of 1.56 indicates that AMRC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.56, AMRC belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The earnings per share for AMRC have decreased strongly by -10.53% in the last year.
Measured over the past 5 years, AMRC shows a small growth in Earnings Per Share. The EPS has been growing by 3.47% on average per year.
AMRC shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.13%.
AMRC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.34% yearly.
EPS 1Y (TTM)-10.53%
EPS 3Y-12.06%
EPS 5Y3.47%
EPS Q2Q%0%
Revenue 1Y (TTM)30.13%
Revenue growth 3Y13.34%
Revenue growth 5Y15.34%
Sales Q2Q%18.24%
3.2 Future
Based on estimates for the next years, AMRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.33% on average per year.
AMRC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.
EPS Next Y-23.2%
EPS Next 2Y4.72%
EPS Next 3Y17.49%
EPS Next 5Y16.33%
Revenue Next Year7.13%
Revenue Next 2Y8.45%
Revenue Next 3Y9.51%
Revenue Next 5Y8.47%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.76, the valuation of AMRC can be described as rather expensive.
91.84% of the companies in the same industry are more expensive than AMRC, based on the Price/Earnings ratio.
AMRC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.20, AMRC is valued correctly.
Based on the Price/Forward Earnings ratio, AMRC is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.67. AMRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 16.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AMRC indicates a somewhat cheap valuation: AMRC is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
AMRC's earnings are expected to grow with 17.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)5.12
EPS Next 2Y4.72%
EPS Next 3Y17.49%
5. Dividend
5.1 Amount
No dividends for AMRC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.12
-0.66 (-3.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners93.66%
Inst Owner Change-1.05%
Ins Owners7.71%
Ins Owner Change10.96%
Market Cap953.11M
Analysts75.29
Price Target21.65 (19.48%)
Short Float %9.17%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.04%
Min EPS beat(2)-8.27%
Max EPS beat(2)64.35%
EPS beat(4)1
Avg EPS beat(4)-10.47%
Min EPS beat(4)-66.19%
Max EPS beat(4)64.35%
EPS beat(8)3
Avg EPS beat(8)-4.78%
EPS beat(12)5
Avg EPS beat(12)-1.18%
EPS beat(16)9
Avg EPS beat(16)4.47%
Revenue beat(2)1
Avg Revenue beat(2)6.22%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)12.84%
Revenue beat(4)3
Avg Revenue beat(4)6.79%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)13.75%
Revenue beat(8)6
Avg Revenue beat(8)5.69%
Revenue beat(12)9
Avg Revenue beat(12)4.87%
Revenue beat(16)11
Avg Revenue beat(16)3.9%
PT rev (1m)2.69%
PT rev (3m)-3.54%
EPS NQ rev (1m)-21.05%
EPS NQ rev (3m)-75%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 16.2 | ||
| P/S | 0.52 | ||
| P/FCF | N/A | ||
| P/OCF | 13.92 | ||
| P/B | 0.94 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 14.23 |
EPS(TTM)1.02
EY5.63%
EPS(NY)1.12
Fwd EY6.17%
FCF(TTM)-7.16
FCFYN/A
OCF(TTM)1.3
OCFY7.18%
SpS34.68
BVpS19.24
TBVpS17.76
PEG (NY)N/A
PEG (5Y)5.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 5.35% | ||
| ROCE | 2.62% | ||
| ROIC | 2.07% | ||
| ROICexc | 2.11% | ||
| ROICexgc | 2.17% | ||
| OM | 4.84% | ||
| PM (TTM) | 2.97% | ||
| GM | 14.31% | ||
| FCFM | N/A |
ROA(3y)2.11%
ROA(5y)2.51%
ROE(3y)8%
ROE(5y)8.99%
ROIC(3y)3.15%
ROIC(5y)3.6%
ROICexc(3y)3.29%
ROICexc(5y)3.76%
ROICexgc(3y)3.41%
ROICexgc(5y)3.91%
ROCE(3y)3.99%
ROCE(5y)4.56%
ROICexcg growth 3Y-23.67%
ROICexcg growth 5Y-13.36%
ROICexc growth 3Y-23.08%
ROICexc growth 5Y-12.71%
OM growth 3Y-16.55%
OM growth 5Y-4.81%
PM growth 3Y-17.89%
PM growth 5Y-8.97%
GM growth 3Y-8.6%
GM growth 5Y-5.69%
F-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.58 | ||
| Cap/Depr | 471.74% | ||
| Cap/Sales | 24.39% | ||
| Interest Coverage | 0.84 | ||
| Cash Conversion | 37.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 1.04 |
F-Score6
WACC9.53%
ROIC/WACC0.22
Cap/Depr(3y)645.79%
Cap/Depr(5y)553.31%
Cap/Sales(3y)27.71%
Cap/Sales(5y)23.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.53%
EPS 3Y-12.06%
EPS 5Y3.47%
EPS Q2Q%0%
EPS Next Y-23.2%
EPS Next 2Y4.72%
EPS Next 3Y17.49%
EPS Next 5Y16.33%
Revenue 1Y (TTM)30.13%
Revenue growth 3Y13.34%
Revenue growth 5Y15.34%
Sales Q2Q%18.24%
Revenue Next Year7.13%
Revenue Next 2Y8.45%
Revenue Next 3Y9.51%
Revenue Next 5Y8.47%
EBIT growth 1Y6.36%
EBIT growth 3Y-5.42%
EBIT growth 5Y9.79%
EBIT Next Year90.63%
EBIT Next 3Y37.6%
EBIT Next 5Y27.24%
FCF growth 1Y-2.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2114.03%
OCF growth 3YN/A
OCF growth 5YN/A