Ameresco Inc (AMRC, Financial), a prominent player in the construction industry, has recently witnessed a significant uptick in its stock performance. Over the past three months, the company's stock price has surged by an impressive 62.57%, despite a slight decline of 0.09% over the past week. Currently, Ameresco's market capitalization stands at $1.9 billion, with a stock price of $36.34. According to GuruFocus, the GF Value of Ameresco is $49.62, suggesting that the stock is modestly undervalued compared to its past GF Value of $54.74, which indicated a possible value trap.
Company Overview
Ameresco Inc specializes in providing comprehensive energy efficiency solutions for a wide range of facilities across North America and Europe. The company's services are geared towards reducing energy and maintenance costs for governmental, educational, utility, healthcare, and other institutional, commercial, and industrial entities. Ameresco's offerings include the distribution of solar energy products and systems, such as photovoltaic panels, solar regulators, and inverters. The majority of its revenue is derived from the U.S. Regions segment. 
Profitability Insights
Ameresco's financial health is robust, with a Profitability Rank of 8/10. The company's Operating Margin is 5.97%, which is better than 55.53% of its peers in the industry. Additionally, Ameresco's Return on Equity (ROE) and Return on Assets (ROA) stand at 6.72% and 1.72% respectively, showcasing its ability to generate profits relative to shareholders' equity and total assets. The Return on Invested Capital (ROIC) is also commendable at 5.28%. Ameresco has maintained profitability for the past 10 years, a testament to its financial stability and operational efficiency. 
Growth Trajectory
The company's Growth Rank is a perfect 10/10. Ameresco has demonstrated consistent growth in revenue per share over the past three and five years, with rates of 7.00% and 12.60% respectively. Looking ahead, the estimated Total Revenue Growth Rate for the next three to five years is an impressive 14.12%. Furthermore, Ameresco's EPS without NRI has grown by 3.60% over the past three years and is projected to accelerate to a growth rate of 25.00% in the coming years. These figures highlight Ameresco's strong potential for continued expansion and profitability. 
Notable Shareholders
Several prominent investors hold significant stakes in Ameresco. Jeremy Grantham (Trades, Portfolio), a well-known value investor, owns 4,266,759 shares, representing 8.15% of the company. Other notable shareholders include Caxton Associates (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio), holding smaller but strategic positions in the company.
Competitive Landscape
Ameresco operates in a competitive environment with key players such as NV5 Global Inc (NVEE, Financial), Granite Construction Inc (GVA, Financial), and Primoris Services Corp (PRIM, Financial). These companies have market capitalizations of $1.5 billion, $2.72 billion, and $2.91 billion respectively, positioning Ameresco well within this competitive set.
Conclusion
Ameresco Inc's recent stock performance and solid financial metrics underscore its strong market position and growth potential. The company's focus on energy efficiency projects not only enhances its profitability but also aligns with global sustainability trends, offering long-term benefits. With its stock currently seen as modestly undervalued, Ameresco presents an attractive opportunity for investors looking for growth in the green energy sector.
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.
