DB:4AM

Stock Analysis Report

Executive Summary

Ameresco, Inc. provides comprehensive energy services for businesses and organizations in North America and Europe.

Rewards

Earnings are forecast to grow 18.1% per year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Profit margins (4.3%) are lower than last year (6.4%)



Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Ameresco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4AM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

4AM

3.5%

DE Construction

1.0%

DE Market


1 Year Return

14.7%

4AM

-1.3%

DE Construction

16.4%

DE Market

Return vs Industry: 4AM exceeded the German Construction industry which returned -1.3% over the past year.

Return vs Market: 4AM underperformed the German Market which returned 16.4% over the past year.


Shareholder returns

4AMIndustryMarket
7 Day0.7%3.5%1.0%
30 Day5.7%-0.2%-0.4%
90 Day12.9%7.1%6.5%
1 Year14.7%14.7%2.8%-1.3%20.0%16.4%
3 Year161.2%161.2%-7.0%-13.9%19.9%9.3%
5 Year169.4%169.4%123.2%98.1%40.8%21.7%

Price Volatility Vs. Market

How volatile is Ameresco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ameresco undervalued compared to its fair value and its price relative to the market?

22.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 4AM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 4AM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 4AM is poor value based on its PE Ratio (22.4x) compared to the Construction industry average (11.5x).

PE vs Market: 4AM is poor value based on its PE Ratio (22.4x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: 4AM is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 4AM is overvalued based on its PB Ratio (1.9x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

How is Ameresco forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4AM's forecast earnings growth (18.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: 4AM's earnings (18.1% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: 4AM's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4AM's revenue (7.9% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: 4AM's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 4AM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ameresco performed over the past 5 years?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4AM has a high level of non-cash earnings.

Growing Profit Margin: 4AM's current net profit margins (4.3%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 4AM's earnings have grown significantly by 39.1% per year over the past 5 years.

Accelerating Growth: 4AM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 4AM had negative earnings growth (-32.6%) over the past year, making it difficult to compare to the Construction industry average (7.4%).


Return on Equity

High ROE: 4AM's Return on Equity (7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ameresco's financial position?


Financial Position Analysis

Short Term Liabilities: 4AM's short term assets ($341.1M) exceed its short term liabilities ($246.7M).

Long Term Liabilities: 4AM's short term assets ($341.1M) do not cover its long term liabilities ($489.6M).


Debt to Equity History and Analysis

Debt Level: 4AM's debt to equity ratio (104.3%) is considered high.

Reducing Debt: 4AM's debt to equity ratio has increased from 67.7% to 104.3% over the past 5 years.

Debt Coverage: 4AM's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 4AM's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: 4AM has a high level of physical assets or inventory.

Debt Coverage by Assets: 4AM's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Ameresco's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage3.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 4AM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 4AM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4AM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4AM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 4AM's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Ameresco's salary, the management and board of directors tenure and is there insider trading?

9.5yrs

Average management tenure


CEO

George Sakellaris (72yo)

19.9yrs

Tenure

US$1,168,353

Compensation

Mr. George P. Sakellaris, P.E., founded Ameresco, Inc. in April 2000 and also has been its Chairman, Chief Executive Officer and President since 2000. Mr. Sakellaris had a vision of creating an energy comp ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD1.17M) is about average for companies of similar size in the German market ($USD1.17M).

Compensation vs Earnings: George's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

9.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 4AM's management team is seasoned and experienced (9.5 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

63yo

Average Age

Experienced Board: 4AM's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$12,46516 Aug 19
Thomas Murley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$12.46
BuyUS$50,58314 Aug 19
Jennifer Miller
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$12.65
BuyUS$6,73810 May 19
Thomas Murley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares500
Max PriceUS$13.48
BuyUS$54,25308 May 19
Nickolas Stavropoulos
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$13.56

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • George Sakellaris (72yo)

    Founder

    • Tenure: 19.9yrs
    • Compensation: US$1.17m
  • Joseph DeManche (62yo)

    Executive Vice President of Engineering & Operations

    • Tenure: 17.9yrs
    • Compensation: US$561.15k
  • David Corrsin (60yo)

    Executive VP

    • Tenure: 19.9yrs
  • Michael Bakas (50yo)

    Executive Vice President of Distributed Energy Systems

    • Tenure: 0yrs
    • Compensation: US$552.78k
  • David Anderson (58yo)

    Executive VP & Director

    • Tenure: 19.9yrs
    • Compensation: US$438.92k
  • Nicole Bulgarino (46yo)

    Executive VP & GM of Federal Solutions

    • Tenure: 0yrs
    • Compensation: US$592.83k
  • Spencer Hole (50yo)

    Senior VP & CFO

    • Tenure: 0.4yrs
  • Mark Chiplock (49yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 1.2yrs
    • Compensation: US$1.28m
  • Leila Dillon

    Vice President of Marketing & Communications

    • Tenure: 0.9yrs
  • Lauren Todd

    Vice President of Human Resources & Operations

    • Tenure: 0.9yrs

Board Members

  • Joseph Sutton (72yo)

    Lead Director

    • Tenure: 8.6yrs
    • Compensation: US$101.36k
  • George Sakellaris (72yo)

    Founder

    • Tenure: 19.9yrs
    • Compensation: US$1.17m
  • Nick Stavropoulos (61yo)

    Independent Director

    • Tenure: 0.7yrs
  • Tom Murley (62yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$88.86k
  • David Corrsin (60yo)

    Executive VP

    • Tenure: 19.9yrs
  • David Anderson (58yo)

    Executive VP & Director

    • Tenure: 19.9yrs
    • Compensation: US$438.92k
  • Jennifer Miller (63yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$97.36k
  • Frank Wisneski (72yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$106.86k
  • Doug Foy (72yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$98.86k

Company Information

Ameresco, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ameresco, Inc.
  • Ticker: 4AM
  • Exchange: DB
  • Founded: 2000
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: US$769.932m
  • Listing Market Cap: US$693.940m
  • Shares outstanding: 47.03m
  • Website: https://www.ameresco.com

Number of Employees


Location

  • Ameresco, Inc.
  • 111 Speen Street
  • Suite 410
  • Framingham
  • Massachusetts
  • 1701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMRCNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJul 2010
4AMDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2010

Biography

Ameresco, Inc. provides comprehensive energy services for businesses and organizations in North America and Europe. It offers energy efficiency, infrastructure upgrades, energy security and resilience, ass ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 22:02
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.