Ameresco IncAMRC
▼ NegativeCapitalrelevance
Q1 earnings showed declining profitability, negative free cash flow, and high debt, with shares falling 12.5%.
Ameresco's shares have fallen 12.5% over the last six months to $25.63, underperforming the S&P 500's 9% gain, amid softer quarterly results. The company's earnings per share declined 12% annually over the past five years while revenue grew 13.1%, signaling declining profitability. Its free cash flow margin averaged negative 27.7% over the same period, and it burned through $326.5 million of cash in the last year with $2.05 billion in debt against only $104 million in cash. Analysts remain cautious, noting the stock trades at 24.5 times forward price-to-earnings, but shaky fundamentals present significant downside risk.
Ameresco IncQ1 earnings showed declining profitability, negative free cash flow, and high debt, with shares falling 12.5%.