Monday, December 19, 2016

Ameresco Making Headway, But It's Not Easy

Of all the companies to see post-election runs, Ameresco (NYSE:AMRC) is one of the less obvious ones to me. Ameresco's business is built upon helping customers, particularly government and/or government-funded institutions, find ways to boost energy efficiency and lower their electricity bills. What's more, it's a business where the cost of capital for project financing makes a meaningful difference in the cost-benefit evaluation process. Given the incoming administration's priorities, I wouldn't think that investors would be feeling that much more confident now.

In any case, Ameresco does appear as though it might be undervalued, but I have a hard time working up a lot of conviction for it. While it is true that there are myriad ways that companies/offices can reduce energy (many of which aren't obvious and/or require the help of experts) and these ways are generally very cost effective, that has been true for a long time. And yet, a lot of Ameresco's growth has been tied to various government incentive progress designed to goose adoption of these measures. Nevertheless, as a "platform neutral" provider of energy efficiency and cost saving options, I do think Ameresco is at least worth your own due diligence.

Keep reading here:
Ameresco Making Headway, But It's Not Easy

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