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Ameresco - AI Stock Analysis
Analysis generated November 14, 2024
Ameresco, Inc. is a leading independent provider of comprehensive services, energy efficiency, infrastructure upgrades, asset sustainability and renewable asset development services. In essence, the company helps clients achieve energy savings and sustainability goals. Ameresco serves customers in North America and Europe across various sectors including government, healthcare, education, and commercial industries.
Fundamental Analysis
Revenue for the last quarter was $486M. This reflects a significant increase of 13.47% compared to the previous quarter and a strong year-over-year growth of 47.67%. This strong revenue growth indicates an expanding customer base and increasing demand for Ameresco’s services.
Net income for the last quarter was $18M. Notably, this is an impressive increase of 251.28% from the previous quarter, yet a concerning decrease of 17.24% compared to the same quarter last year. While the quarter-over-quarter growth is encouraging, the year-over-year decline needs to be watched.
EBITDA for the last quarter was $27M. This marks an increase of 26.94% from the previous quarter and a year-over-year growth of 4.14%. Positive EBITDA growth signifies improved operational efficiency and profitability.
The current P/E ratio stands at 26.45. A relatively high P/E ratio suggests that the stock might be overvalued, which could indicate a bearish outlook. Additionally, recent insider selling is typically a bearish signal, reflecting potential lack of confidence by those with the most intimate knowledge of the company's operations and prospects.
Technical Analysis
Today’s stock price is $26.78, which is a steep decline of 23.35% over the past month. Over the past year, the stock has decreased by 4.43%. This downward trend is worrisome for both short-term and long-term investors.
The current SMA10 is 28.67, down from the previous SMA10 of 29.34. This decreasing trend in the Simple Moving Average (SMA) further confirms the bearish outlook.
The current Relative Strength Index (RSI) is 51.6, which sits in the neutral range. An RSI between 30 and 70 is generally considered neutral, indicating neither overbought nor oversold conditions.
Alternative Data Analysis
Job postings have increased by 15% over the past couple of months, with 99 open positions currently available. This can be interpreted as a positive indicator, signifying that Ameresco is looking to grow and expand.
The business outlook among employees is neutral, neither particularly optimistic nor pessimistic.
Customer acquisition metrics, on the other hand, are worrisome. Webpage visitors have dropped by 72% over the last couple of months, indicating potential customer attrition. Customer engagement on social media platforms, such as Instagram and Twitter, shows no significant change which might indicate stagnation in this area.
Lastly, AltIndex’s AI score for Ameresco is 63, which is a buy signal. This score consolidates fundamental, technical, and alternative data, providing a holistic view of the stock’s potential.
Conclusion and Recommendation
Considering all the data, Ameresco presents a mixed picture. Revenue and EBITDA growth are strong points, reflecting operational excellence and market demand. However, the declines in net income and the high P/E ratio raise some concerns. The bearish technical indicators, alongside the decreasing webpage visitors, further add to these concerns.
Despite these concerns, job postings and the AI score of 63 suggest that there might be optimism for growth. However, given the current bearish trends and potential overvaluation, a cautious approach is advised. Investors might want to closely monitor the company’s next earnings report and market position before making substantial new investments.
Recommendation: Hold
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
