Ameresco Inc. Class A Common Stock (AMRC)

FairStock Score: 26/100 — RISKY

Key Financials

Concerns

• High leverage at 2.17x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.8 places it in the financial distress zone—elevated bankruptcy risk
• No meaningful dividend despite modest growth—total return depends entirely on multiple expansion

AI Analysis

Ameresco Inc. Class A Common Stock is a micro-cap industrials company valued at $1.5 billion. The business generates $1.9 billion in annual revenue with a 1.0% net margin. From a quality standpoint, Ameresco shows distressed Altman Z-Score of 0.8 warrants caution and modest 5% ROE. On valuation, the stock is trading at a premium 33.5x earnings, with trades above its Graham Number with a negative 41% margin. Growth dynamics show revenue growing at 9.1% and profit growth of -50.5%. Our composite FairStock Score of 26/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 33x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer