📊 AMRC Key Takeaways
Is Ameresco, Inc. (AMRC) a Good Investment?
While Ameresco demonstrates exceptional revenue growth of 2621.7% YoY, the company is operationally challenged with negative free cash flow of -$37.7M and deteriorating profitability metrics including declining EPS. The massive leverage position (1.63x debt-to-equity) combined with negative operating cash flow raises sustainability concerns despite strong topline expansion.
Ameresco shows solid scale and positive operating profitability, with acceptable near-term liquidity and a sizable revenue base. However, earnings quality looks mixed because net income growth is essentially flat, margins remain thin, leverage is elevated, and operating/free cash flow are negative. The very large reported revenue growth also appears low-quality until it is confirmed by sustained margin expansion and cash conversion.
Why Buy Ameresco, Inc. Stock? AMRC Key Strengths
- Exceptional revenue growth of 2621.7% YoY indicating strong market demand and successful business expansion
- Adequate liquidity position with current ratio of 1.51x and quick ratio of 1.50x to meet short-term obligations
- Positive operating income of $83.8M demonstrates core business profitability before leverage effects
- Positive gross profit and operating income indicate the core business is profitable at the operating level
- Current and quick ratios around 1.5x suggest near-term liquidity is adequate
- Large reported revenue increase indicates strong top-line momentum, if sustainable
AMRC Stock Risks: Ameresco, Inc. Investment Risks
- Negative free cash flow of -$37.7M indicates the company is burning cash despite revenue growth, raising sustainability concerns
- High leverage with debt-to-equity ratio of 1.63x and $1.7B long-term debt against only $1.1B stockholders' equity creates financial stress
- Declining EPS of -8.5% YoY despite flat net income growth suggests share dilution and deteriorating per-share returns
- Margins are compressed with net margin of only 1.9% despite massive revenue growth, indicating operational inefficiency or unfavorable contract mix
- Interest coverage of 3.1x is relatively weak for a leveraged company, leaving limited buffer for earnings volatility
- Negative operating cash flow and free cash flow indicate weak cash conversion despite reported profits
- High debt-to-equity and only moderate interest coverage create balance-sheet risk
- Net margin, ROE, and ROA are low, showing limited profitability relative to sales and capital employed
Key Metrics to Watch
- Operating cash flow trend - critical to confirm if negative FCF is temporary due to working capital timing or structural issue
- Debt reduction progress and deleveraging trajectory given the 1.63x debt-to-equity ratio
- Net margin expansion - whether margins can improve as company matures or if they remain compressed at 1.9%
- EPS trajectory - whether the -8.5% decline stabilizes or continues deteriorating
- Operating cash flow and free cash flow trend
- Interest coverage and debt-to-equity trend
Ameresco, Inc. (AMRC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Ameresco, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AMRC Profit Margin, ROE & Profitability Analysis
AMRC vs Industrial Sector: How Ameresco, Inc. Compares
How Ameresco, Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ameresco, Inc. Stock Overvalued? AMRC Valuation Analysis 2026
Based on fundamental analysis, Ameresco, Inc. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ameresco, Inc. Balance Sheet: AMRC Debt, Cash & Liquidity
AMRC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ameresco, Inc.'s revenue has grown significantly by 77% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.78 reflects profitable operations.
AMRC Revenue Growth, EPS Growth & YoY Performance
AMRC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $500.9M | $17.6M | $0.33 |
| Q2 2025 | $438.0M | $2.1M | $0.04 |
| Q1 2025 | $298.4M | -$2.9M | $-0.06 |
| Q3 2024 | $335.1M | $17.6M | $0.33 |
| Q2 2024 | $327.1M | $2.1M | $0.04 |
| Q1 2024 | $271.0M | $1.1M | $0.02 |
| Q3 2023 | $335.1M | $21.3M | $0.40 |
| Q2 2023 | $327.1M | $6.4M | $0.12 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ameresco, Inc. Dividends, Buybacks & Capital Allocation
AMRC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ameresco, Inc. (CIK: 0001488139)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AMRC
What is the AI rating for AMRC?
Ameresco, Inc. (AMRC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AMRC's key strengths?
Claude: Exceptional revenue growth of 2621.7% YoY indicating strong market demand and successful business expansion. Adequate liquidity position with current ratio of 1.51x and quick ratio of 1.50x to meet short-term obligations. ChatGPT: Positive gross profit and operating income indicate the core business is profitable at the operating level. Current and quick ratios around 1.5x suggest near-term liquidity is adequate.
What are the risks of investing in AMRC?
Claude: Negative free cash flow of -$37.7M indicates the company is burning cash despite revenue growth, raising sustainability concerns. High leverage with debt-to-equity ratio of 1.63x and $1.7B long-term debt against only $1.1B stockholders' equity creates financial stress. ChatGPT: Negative operating cash flow and free cash flow indicate weak cash conversion despite reported profits. High debt-to-equity and only moderate interest coverage create balance-sheet risk.
What is AMRC's revenue and growth?
Ameresco, Inc. reported revenue of $1.4B.
Does AMRC pay dividends?
Ameresco, Inc. does not currently pay dividends.
Where can I find AMRC SEC filings?
Official SEC filings for Ameresco, Inc. (CIK: 0001488139) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AMRC's EPS?
Ameresco, Inc. has a diluted EPS of $0.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AMRC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Ameresco, Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AMRC stock overvalued or undervalued?
Valuation metrics for AMRC: ROE of 2.5% (sector avg: 15%), net margin of 1.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AMRC stock in 2026?
Our dual AI analysis gives Ameresco, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AMRC's free cash flow?
Ameresco, Inc.'s operating cash flow is $-37.5M, with capital expenditures of $217.0K. FCF margin is -2.8%.
How does AMRC compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 1.9% (avg: 10%), ROE 2.5% (avg: 15%), current ratio 1.51 (avg: 1.8).
Is Ameresco, Inc. carrying too much debt?
AMRC has a debt-to-equity ratio of 1.63x, which is above the Industrial sector average of 0.7x. However, the current ratio of 1.51 suggests adequate short-term liquidity.