Assessing Ameresco (AMRC) Valuation After New Illinois RNG Facility Reaches Operation

Ameresco (AMRC) is back on investor radar after announcing that its renewable natural gas facility at the Upper Rock Island County Landfill in Illinois reached operation, converting landfill gas into pipeline-quality fuel.

See our latest analysis for Ameresco.

The latest RNG project arrives after a tough stretch for the share price, with a 90 day share price return showing a 27.38% decline and a 3 year total shareholder return showing a 49.26% decline, although the 1 year total shareholder return of 18.00% suggests momentum has recently been rebuilding.

If Ameresco’s news has you thinking more broadly about clean energy and infrastructure, it could be a good moment to scan other fast growing stocks with high insider ownership as potential ideas.

With the share price under pressure over 3 and 5 years but recent 1 year returns turning positive, combined with a value score of 5 and an indicated intrinsic discount, is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 30.8% Undervalued

With Ameresco last closing at US$30.29 against a narrative fair value of US$43.78, the valuation hinges on how durable future project earnings could be.

Growing recurring O&M contract revenue and a rising base of operating energy assets (now at 750MW) are providing Ameresco with more predictable, higher-margin income, supporting greater financial stability and margin expansion over time.

Read the complete narrative.

Want to see what underpins that higher value? The narrative leans on steady contract revenue, expanding assets, and a richer future earnings multiple. Curious how these pieces fit together?

Result: Fair Value of $43.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the story can change quickly if supply chain setbacks delay major projects or if shifts in clean energy policy slow contract awards and revenue timing.

Find out about the key risks to this Ameresco narrative.

Build Your Own Ameresco Narrative

If parts of this story do not quite line up with your own view, that is a useful signal to review the numbers yourself and shape a version that fits your thesis in just a few minutes, then Do it your way

A great starting point for your Ameresco research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Ready For More Investment Ideas?

If Ameresco got you thinking about your next move, do not stop here. Use this momentum to size up a broader set of ideas before the crowd catches on.

• Spot potential value opportunities early by scanning these 880 undervalued stocks based on cash flows that align with your return and risk preferences.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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