NEW YORK ( TheStreet) -- Ameresco (NYSE: AMRC) has been upgraded by TheStreet Ratings from sell to hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.
- The revenue fell significantly faster than the industry average of 10.9%. Since the same quarter one year prior, revenues fell by 24.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- AMRC's debt-to-equity ratio of 0.80 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.49 is sturdy.
- The gross profit margin for AMERESCO INC is rather low; currently it is at 23.38%. Regardless of AMRC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.74% trails the industry average.
- AMERESCO INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, AMERESCO INC reported lower earnings of $0.41 versus $0.76 in the prior year. For the next year, the market is expecting a contraction of 2.4% in earnings ($0.40 versus $0.41).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction & Engineering industry. The net income has significantly decreased by 210.9% when compared to the same quarter one year ago, falling from $1.74 million to -$1.92 million.