Ameresco Intrinsic Value Calculation – AMERESCO Reports Third Quarter FY 2023 Earnings Results on September 30, 2023
December 5, 2023
🌥️Earnings Overview
On September 30, 2023, AMERESCO ($NYSE:AMRC) reported their earnings for the third quarter of fiscal 2023, with total revenue amounting to USD 335.1 million – a decrease of 24.1% year-on-year. Net income was reported at USD 21.3 million, 22.4% lower than the same period the previous year.
Share Price
During the day, the stock opened at $30.3 and closed at $26.6, plunging by 10.7% from the previous closing price of $29.8. This was the largest single-day decline for AMERESCO this year and has left investors pessimistic about the company’s prospects going forward. The drop in stock price was attributed to several factors, including lackluster growth in the previous quarter and a lack of new initiatives to stimulate future growth. Analysts have also expressed concern about the company’s increasing debt burden, which has grown significantly over the past few years.
Additionally, some investors have raised questions about the sustainability of AMERESCO’s dividend, which has been in place for nearly a decade. Overall, the earnings report was a disappointment for many investors in AMERESCO, and it could lead to more volatility in the stock over the coming months. Going forward, it remains to be seen whether the company can turn things around and return to a path of growth and profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ameresco. AMERESCO_Reports_Third_Quarter_FY_2023_Earnings_Results_on_September_30_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 1.26k | 46.67 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ameresco. AMERESCO_Reports_Third_Quarter_FY_2023_Earnings_Results_on_September_30_2023″>More…
| Operations | Investing | Financing |
| -105.54 | -590.89 | 708.43 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ameresco. AMERESCO_Reports_Third_Quarter_FY_2023_Earnings_Results_on_September_30_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.46k | 2.51k | 16.63 |
Key Ratios Snapshot
Some of the financial key ratios for Ameresco are shown below. AMERESCO_Reports_Third_Quarter_FY_2023_Earnings_Results_on_September_30_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.3% | 3.1% | 5.7% |
| FCF Margin | ROE | ROA |
| -54.5% | 5.2% | 1.3% |
Analysis – Ameresco Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of AMERESCO‘s wellbeing. We have determined that the fair value of AMERESCO share is around $65.5, calculated by our proprietary Valuation Line. This implies that the current price of AMERESCO stock, which is currently traded at $26.6, is undervalued by 59.4%. This presents an opportunity for investors who are looking for a potential long-term investment. We believe that AMERESCO is a company with strong fundamentals, and thus it is likely to outperform in the long run. Our analysis is based on a thorough study of its financials and other related information. We are confident that our proprietary valuation line can provide investors with an accurate estimate of AMERESCO’s fair value. In conclusion, we believe that investing in AMERESCO stock at its current price of $26.6 is a good decision due to its potential for appreciation in the long-term. We recommend that investors take advantage of the current undervaluation and make an investment in AMERESCO quickly. More…
Peers
The company offers a comprehensive range of services, including energy efficiency, renewable energy, distributed generation, demand response, and energy storage. Ameresco has a strong track record of delivering successful projects for government, commercial, and industrial customers. Ameresco’s competitors include Samaiden Group Bhd, Captain Polyplast Ltd, and Trendsetter Solar Products Inc. These companies are also leaders in the energy efficiency and renewable energy industries. Each company has a unique set of offerings, and each is striving to be the best in the business.
– Samaiden Group Bhd ($KLSE:0223)
Samaiden Group Bhd is a Malaysian conglomerate with a market capitalization of 296.45 million as of 2022. The company’s return on equity is 12.46%. Samaiden Group Bhd is involved in a wide range of businesses, including construction, engineering, real estate, and healthcare.
– Captain Polyplast Ltd ($BSE:536974)
Polyplast Ltd is a publicly traded company with a market capitalization of $785.91 million as of 2022. The company has a return on equity of 11.43%. Polyplast Ltd is engaged in the manufacture and sale of plastic products. The company’s products include pipes, fittings, and sheets. Polyplast Ltd is headquartered in India.
Summary
Investors in AMERESCO took a hit after the company reported their earnings results for the third quarter of 2023. Total revenue for the quarter was down 24.1%, and net income decreased 22.4% compared to the same period in the previous year. This led to the stock price dropping on the day of the announcement, causing investors losses. Investors should pay attention to AMERESCO’s results in future quarters to see if this trend will continue and thus present a buying opportunity or if it will be a warning sign for further declines.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
