The declining trend of ROCE at Ameresco is concerning. Investors might be expecting the trends to reverse given the stock's gain over the last five years. However, the current trends are not favorable and better investments might be found elsewhere.
Ameresco's low ROE and significant debt usage make it less appealing currently. High quality businesses often trade on high multiples of earnings, considering future profit growth and required investment is crucial.
Shareholders retain Ameresco shares owing to its promising future, undeterred by a high P/E ratio. The potential for earnings deterioration seems insufficient to warrant a lower P/E ratio. No marked drop in share price is expected soon.
Ameresco's diminishing returns and lower ROCE contrast its stock's 116% gain over five years, indicating investor optimism. However, negative underlying trends raise concerns for long-term performance.
Ameresco's diminishing returns and lower ROCE hint at concerns for its long-term performance, despite a 116% stock gain in five years, showing investor optimism.
Insiders at Ameresco recently purchased US$2.2m worth of shares, indicating confidence in the company. With insiders owning 39% of the company, the alignment of management interests with shareholders is suggested. Large insider ownership and positive recent transactions paint a favorable picture of Ameresco.
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