ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORA - US6866881021 - Common Stock
128.32 USD
+2.12 (+1.68%)
Taking everything into account, ORA scores 4 out of 10 in our fundamental rating. ORA was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. There are concerns on the financial health of ORA while its profitability can be described as average. ORA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year ORA was profitable.
- ORA had a positive operating cash flow in the past year.
- Each year in the past 5 years ORA has been profitable.
- ORA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 2.19%, ORA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 5.31%, ORA is in line with its industry, outperforming 60.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 2.52%, ORA is in line with its industry, outperforming 60.00% of the companies in the same industry.
- ORA had an Average Return On Invested Capital over the past 3 years of 2.95%. This is in line with the industry average of 4.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 5.31% | ||
| ROIC | 2.52% |
ROA(3y)2%
ROA(5y)1.92%
ROE(3y)4.67%
ROE(5y)4.42%
ROIC(3y)2.95%
ROIC(5y)3.25%
1.3 Margins
- Looking at the Profit Margin, with a value of 14.12%, ORA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- ORA's Profit Margin has improved in the last couple of years.
- ORA has a Operating Margin of 18.71%. This is in the better half of the industry: ORA outperforms 75.00% of its industry peers.
- In the last couple of years the Operating Margin of ORA has declined.
- With a Gross Margin value of 28.32%, ORA is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
- ORA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.71% | ||
| PM (TTM) | 14.12% | ||
| GM | 28.32% |
OM growth 3Y-8.17%
OM growth 5Y-5.33%
PM growth 3Y14.53%
PM growth 5Y3.56%
GM growth 3Y-8.05%
GM growth 5Y-3%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ORA is destroying value.
- The number of shares outstanding for ORA has been increased compared to 1 year ago.
- The number of shares outstanding for ORA has been increased compared to 5 years ago.
- Compared to 1 year ago, ORA has a worse debt to assets ratio.
2.2 Solvency
- ORA has an Altman-Z score of 1.71. This is a bad value and indicates that ORA is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.71, ORA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.87 indicates that ORA is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.87, ORA is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.32
WACC7.84%
2.3 Liquidity
- ORA has a Current Ratio of 0.77. This is a bad value and indicates that ORA is not financially healthy enough and could expect problems in meeting its short term obligations.
- ORA has a Current ratio of 0.77. This is in the lower half of the industry: ORA underperforms 60.00% of its industry peers.
- ORA has a Quick Ratio of 0.77. This is a bad value and indicates that ORA is not financially healthy enough and could expect problems in meeting its short term obligations.
- ORA's Quick ratio of 0.67 is on the low side compared to the rest of the industry. ORA is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- ORA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.08%, which is quite good.
- ORA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.89% yearly.
- Looking at the last year, ORA shows a small growth in Revenue. The Revenue has grown by 6.07% in the last year.
- Measured over the past years, ORA shows a small growth in Revenue. The Revenue has been growing by 3.35% on average per year.
EPS 1Y (TTM)15.08%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%13.89%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%17.92%
3.2 Future
- ORA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.13% yearly.
- ORA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.82% yearly.
EPS Next Y4.25%
EPS Next 2Y8.45%
EPS Next 3Y9.34%
EPS Next 5Y23.13%
Revenue Next Year9.91%
Revenue Next 2Y13.83%
Revenue Next 3Y10.63%
Revenue Next 5Y9.82%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 56.03, ORA can be considered very expensive at the moment.
- ORA's Price/Earnings ratio is a bit cheaper when compared to the industry. ORA is cheaper than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, ORA is valued quite expensively.
- ORA is valuated quite expensively with a Price/Forward Earnings ratio of 51.46.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ORA is on the same level as its industry peers.
- ORA is valuated expensively when we compare the Price/Forward Earnings ratio to 25.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.03 | ||
| Fwd PE | 51.46 |
4.2 Price Multiples
- ORA's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.67 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ORA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)13.17
PEG (5Y)7.1
EPS Next 2Y8.45%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.39%, ORA is not a good candidate for dividend investing.
- ORA's Dividend Yield is a higher than the industry average which is at 1.36.
- Compared to an average S&P500 Dividend Yield of 1.82, ORA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.39% |
5.2 History
- The dividend of ORA has a limited annual growth rate of 1.80%.
- ORA has paid a dividend for at least 10 years, which is a reliable track record.
- ORA has decreased its dividend recently.
Dividend Growth(5Y)1.8%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 21.81% of the earnings are spent on dividend by ORA. This is a low number and sustainable payout ratio.
- The dividend of ORA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.81%
EPS Next 2Y8.45%
EPS Next 3Y9.34%
ORMAT TECHNOLOGIES INC / ORA FAQ
What is the ChartMill fundamental rating of ORMAT TECHNOLOGIES INC (ORA) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ORA.
Can you provide the valuation status for ORMAT TECHNOLOGIES INC?
ChartMill assigns a valuation rating of 1 / 10 to ORMAT TECHNOLOGIES INC (ORA). This can be considered as Overvalued.
Can you provide the profitability details for ORMAT TECHNOLOGIES INC?
ORMAT TECHNOLOGIES INC (ORA) has a profitability rating of 5 / 10.
What are the PE and PB ratios of ORMAT TECHNOLOGIES INC (ORA) stock?
The Price/Earnings (PE) ratio for ORMAT TECHNOLOGIES INC (ORA) is 56.03 and the Price/Book (PB) ratio is 3.11.
What is the expected EPS growth for ORMAT TECHNOLOGIES INC (ORA) stock?
The Earnings per Share (EPS) of ORMAT TECHNOLOGIES INC (ORA) is expected to grow by 4.25% in the next year.