AMRC

Ameresco’s Backlog Continues to Build

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Image: Ameresco’s backlog of future business remains strong and growing. By Brian Nelson, CFA On November 7, cleantech integrator and renewable energy asset developer, Ameresco (AMRC) reported mixed third quarter results. Revenue jumped 49.4% in the quarter on a year-over-year basis, while non-GAAP earnings per share missed the consensus forecast by $0.21. Still, adjusted EBITDA in the quarter advanced 43.6% on a year-over-year basis. Cash flow from operations in the quarter was $25.1 million and $34.4 million on an adjusted basis. Management was upbeat in the press release: Our team continued to deliver excellent results with year-on-year quarterly revenue growth of 49% and record Adjusted EBITDA of over $62 million, growing 44% in the third quarter, reflecting strong demand for … Read more

Ameresco’s Shares Under Pressure Despite Record Backlog and Asset Pipeline Metrics

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Image Source: Ameresco’s backlog of opportunities remains robust. By Valuentum Analysts The rise of ESG investing and the political shift towards encouraging developments within the realm of green energy–from renewable energy projects to efforts to reduce water consumption and much more–has created numerous opportunities for investors. Ameresco Inc (AMRC) offers energy efficiency solutions, infrastructure upgrades, and renewable energy solutions to its customers. The company also operates some of the renewable energy facilities it helps develop such as solar farms and biogas plants. Ameresco provides its services all over the globe though the U.S. remains its most important market (and the source of over 90% of its revenues). In the U.S., Ameresco will often help its clients secure the financing needed … Read more

Ameresco Posts Solid First Quarter Earnings Update

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Image Source: Ameresco Inc – First Quarter of 2022 Earnings Press Release By Callum Turcan The rise of ESG investing and the political shift towards encouraging developments within the realm of green energy–from renewable energy projects to efforts to reduce water consumption and much more–has created numerous opportunities for investors. Ameresco Inc (AMRC) offers energy efficiency solutions, infrastructure upgrades, and renewable energy solutions to its customers. The company also operates some of the renewable energy facilities it helps develop such as solar farms and biogas plants. Ameresco provides its services all over the globe though the US remains its most important market (and the source of over 90% of its revenues). In the US, Ameresco will often help its clients … Read more

Interview with SDM Investments’ Kevin Truitt — ESG in a Few Words: “Good Ethics, Honesty, Respect, and Dignity”

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Image: SDM Investments’ Kevin Truitt (left) and Valuentum’s Brian Nelson (right) pause for a picture at the Chicago Chapter of the American Association of Individual Investors (December 2016). Brian Nelson, CFA: We’d like to introduce Kevin Truitt, manager in charge of the equity investments at SDM Investments, an investment management firm based in Merrillville, Indiana.  Kevin and I have been friends for more than a decade now, and he’s even written an article about combining value and momentum investing in the AAII Journal a number of years ago, “Investing’s Odd Couple: Value and Momentum.”  Kevin, thanks for sharing your knowledge, wisdom, and experience with us. With that said, let’s get right into the questions. Can you provide some background about … Read more

Ameresco Has Soared, Boosts Guidance (Again)

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Image Shown: Shares of Ameresco Inc have boomed higher since we first wrote about the company on V.com back in August 2020. We include Ameresco as an idea in our ESG Newsletter portfolio and see ample room for further capital appreciation upside. By Callum Turcan On November 1, Ameresco Inc (AMRC) reported third-quarter 2021 earnings that missed top-line consensus estimates but beat bottom-line numbers. The company also raised its full-year guidance (again) for 2021 which saw it increase the midpoint of its revenue, gross margin, non-GAAP adjusted EBITDA, and non-GAAP EPS forecast. Ameresco also raised its full-year guidance for 2021 when it published its first quarter 2021 earnings report. We include Ameresco as an idea in the new ESG Newsletter … Read more

Putting the Environmental in ESG

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Valuentum’s ESG newsletter helps identify which stocks have strong ESG scores, and which ones come up short. Subscribe to the monthly Valuentum ESG Newsletter today by selecting the ‘Subscribe’ button below (12 editions, $1,000/year).   —– By Valuentum Analysts There is no single definition for ESG investing beyond the words that make up the acronym – Environmental, Social, and Governance. Investors looking at ESG may be doing so for a variety of reasons with a variety of different needs. But for every investor, a focus on ESG allows for a fuller consideration of the company, as a whole, as well as how that company impacts the 21st century landscape, as it relates to rewarding social responsibility by investing in companies … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

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Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

ALERT: We’re Still Bullish! Some Portfolio Tweaks

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By Brian Nelson, CFA Hi everybody: Trust you’re doing great, and hope you are enjoying your membership to Valuentum! We’ve received a number of questions from members during the past several weeks, and we’d like to address them briefly in this note. We will write a follow-up note in the coming days that goes into our broader outlook for 2021 and beyond. However, we want to get these takeaways to you as soon as possible, as our inboxes have been overflowing. For starters, if you haven’t read our market/analysis recap for the year 2020, please do so, “2020 Won’t Soon Be Forgotten.” Now on to the questions. First question: Is the stock market in a bubble? Answer: Absolutely not. We … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Follow Up on Our Call on Ameresco

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Image Shown: Since we highlighted Ameresco Inc back in August, shares of AMRC have continued to surge higher. We caution that recent trading activity has been quite volatile, due primarily to the ongoing election count process in the US. By Callum Turcan Back in August 2020, we published a note on Ameresco Inc (AMRC), which provides a comprehensive slate of energy services for its clients (link here). Given that the various services Ameresco provides is quite broad, here is an overview of some of those offerings from our previous article (lightly edited): Ameresco offers a slate of comprehensive energy services that primarily involve designing, engineering, and installing projects at its client’s operations. That includes upgrading the heating, cooling, ventilation, and … Read more