ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
NYSE:ORA - New York Stock Exchange, Inc. - US6866881021 - Common Stock - Currency: USD
Overall ORA gets a fundamental rating of 4 out of 10. We evaluated ORA against 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. While showing a medium growth rate, ORA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ORA was profitable.
In the past year ORA had a positive cash flow from operations.
ORA had positive earnings in each of the past 5 years.
Each year in the past 5 years ORA had a positive operating cash flow.
1.2 Ratios
ORA has a Return On Assets of 2.12%. This is in the better half of the industry: ORA outperforms 73.68% of its industry peers.
The Return On Equity of ORA (4.97%) is comparable to the rest of the industry.
ORA's Return On Invested Capital of 3.10% is fine compared to the rest of the industry. ORA outperforms 68.42% of its industry peers.
ORA had an Average Return On Invested Capital over the past 3 years of 3.66%. This is in line with the industry average of 4.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 4.97% | ||
| ROIC | 3.1% |
ROA(3y)1.74%
ROA(5y)2.03%
ROE(3y)4.08%
ROE(5y)4.66%
ROIC(3y)3.66%
ROIC(5y)4.29%
1.3 Margins
ORA's Profit Margin of 13.33% is fine compared to the rest of the industry. ORA outperforms 73.68% of its industry peers.
In the last couple of years the Profit Margin of ORA has grown nicely.
ORA has a Operating Margin of 19.80%. This is in the better half of the industry: ORA outperforms 68.42% of its industry peers.
In the last couple of years the Operating Margin of ORA has declined.
The Gross Margin of ORA (31.17%) is worse than 73.68% of its industry peers.
In the last couple of years the Gross Margin of ORA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.8% | ||
| PM (TTM) | 13.33% | ||
| GM | 31.17% |
OM growth 3Y-8.38%
OM growth 5Y-7.11%
PM growth 3Y7.35%
PM growth 5Y1.94%
GM growth 3Y-5.79%
GM growth 5Y-3.27%
2. Health
2.1 Basic Checks
ORA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ORA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ORA has more shares outstanding
Compared to 1 year ago, ORA has an improved debt to assets ratio.
2.2 Solvency
ORA has an Altman-Z score of 1.24. This is a bad value and indicates that ORA is not financially healthy and even has some risk of bankruptcy.
ORA has a Altman-Z score of 1.24. This is in the better half of the industry: ORA outperforms 78.95% of its industry peers.
ORA has a Debt/Equity ratio of 0.81. This is a neutral value indicating ORA is somewhat dependend on debt financing.
ORA has a Debt to Equity ratio of 0.81. This is amongst the best in the industry. ORA outperforms 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.24 |
ROIC/WACC0.42
WACC7.38%
2.3 Liquidity
A Current Ratio of 0.95 indicates that ORA may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.95, ORA is in line with its industry, outperforming 52.63% of the companies in the same industry.
A Quick Ratio of 0.81 indicates that ORA may have some problems paying its short term obligations.
ORA has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
ORA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.76%.
The Earnings Per Share has been growing slightly by 6.44% on average over the past years.
The Revenue has grown by 12.18% in the past year. This is quite good.
The Revenue has been growing slightly by 2.89% on average over the past years.
EPS 1Y (TTM)-10.76%
EPS 3Y7.55%
EPS 5Y6.44%
EPS Q2Q%-38.98%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.55%
Revenue growth 5Y2.89%
Sales Q2Q%1.79%
3.2 Future
The Earnings Per Share is expected to grow by 12.02% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.38% on average over the next years. This is quite good.
EPS Next Y-8.02%
EPS Next 2Y1.89%
EPS Next 3Y5.97%
EPS Next 5Y12.02%
Revenue Next Year6.87%
Revenue Next 2Y7.87%
Revenue Next 3Y9.22%
Revenue Next 5Y8.38%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.58 indicates a quite expensive valuation of ORA.
The rest of the industry has a similar Price/Earnings ratio as ORA.
When comparing the Price/Earnings ratio of ORA to the average of the S&P500 Index (29.63), we can say ORA is valued inline with the index average.
With a Price/Forward Earnings ratio of 31.72, ORA can be considered very expensive at the moment.
ORA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ORA is cheaper than 78.95% of the companies in the same industry.
ORA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.58 | ||
| Fwd PE | 31.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ORA is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.37
EPS Next 2Y1.89%
EPS Next 3Y5.97%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, ORA is not a good candidate for dividend investing.
ORA's Dividend Yield is a higher than the industry average which is at 4.73.
With a Dividend Yield of 0.69, ORA pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of ORA decreases each year by -1.61%.
ORA has been paying a dividend for at least 10 years, so it has a reliable track record.
ORA has decreased its dividend recently.
Dividend Growth(5Y)-1.61%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
ORA pays out 24.50% of its income as dividend. This is a sustainable payout ratio.
DP24.5%
EPS Next 2Y1.89%
EPS Next 3Y5.97%
68.82
-0.47 (-0.68%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners94.86%
Inst Owner Change-2.77%
Ins Owners0.31%
Ins Owner Change-117.72%
Market Cap4.16B
Analysts72.31
Price Target86.45 (25.62%)
Short Float %4.37%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.49
Dividend Growth(5Y)-1.61%
DP24.5%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.57%
Min EPS beat(2)10.57%
Max EPS beat(2)14.56%
EPS beat(4)3
Avg EPS beat(4)6.52%
Min EPS beat(4)-1.66%
Max EPS beat(4)14.56%
EPS beat(8)7
Avg EPS beat(8)20.4%
EPS beat(12)11
Avg EPS beat(12)20.22%
EPS beat(16)15
Avg EPS beat(16)19.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-1.53%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)1.45%
Revenue beat(8)2
Avg Revenue beat(8)-2.35%
Revenue beat(12)6
Avg Revenue beat(12)-0.57%
Revenue beat(16)6
Avg Revenue beat(16)-0.92%
PT rev (1m)-1.62%
PT rev (3m)2.52%
EPS NQ rev (1m)-0.59%
EPS NQ rev (3m)0.19%
EPS NY rev (1m)0%
EPS NY rev (3m)0.89%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.58 | ||
| Fwd PE | 31.72 | ||
| P/S | 4.68 | ||
| P/FCF | N/A | ||
| P/OCF | 10.63 | ||
| P/B | 1.74 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 14.4 |
EPS(TTM)1.99
EY2.89%
EPS(NY)2.17
Fwd EY3.15%
FCF(TTM)-2.28
FCFYN/A
OCF(TTM)6.47
OCFY9.4%
SpS14.72
BVpS39.49
TBVpS31.87
PEG (NY)N/A
PEG (5Y)5.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.12% | ||
| ROE | 4.97% | ||
| ROCE | 3.51% | ||
| ROIC | 3.1% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.47% | ||
| OM | 19.8% | ||
| PM (TTM) | 13.33% | ||
| GM | 31.17% | ||
| FCFM | N/A |
ROA(3y)1.74%
ROA(5y)2.03%
ROE(3y)4.08%
ROE(5y)4.66%
ROIC(3y)3.66%
ROIC(5y)4.29%
ROICexc(3y)3.84%
ROICexc(5y)4.55%
ROICexgc(3y)4.29%
ROICexgc(5y)4.99%
ROCE(3y)4.09%
ROCE(5y)4.81%
ROICexcg growth 3Y-13.8%
ROICexcg growth 5Y-13.16%
ROICexc growth 3Y-14.36%
ROICexc growth 5Y-13.32%
OM growth 3Y-8.38%
OM growth 5Y-7.11%
PM growth 3Y7.35%
PM growth 5Y1.94%
GM growth 3Y-5.79%
GM growth 5Y-3.27%
F-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.53 | ||
| Cap/Depr | 209.55% | ||
| Cap/Sales | 59.48% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.25% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.95 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.24 |
F-Score4
WACC7.38%
ROIC/WACC0.42
Cap/Depr(3y)262.56%
Cap/Depr(5y)236.13%
Cap/Sales(3y)71.51%
Cap/Sales(5y)59.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.76%
EPS 3Y7.55%
EPS 5Y6.44%
EPS Q2Q%-38.98%
EPS Next Y-8.02%
EPS Next 2Y1.89%
EPS Next 3Y5.97%
EPS Next 5Y12.02%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.55%
Revenue growth 5Y2.89%
Sales Q2Q%1.79%
Revenue Next Year6.87%
Revenue Next 2Y7.87%
Revenue Next 3Y9.22%
Revenue Next 5Y8.38%
EBIT growth 1Y0.24%
EBIT growth 3Y-3.3%
EBIT growth 5Y-4.43%
EBIT Next Year174.18%
EBIT Next 3Y47.29%
EBIT Next 5Y32.04%
FCF growth 1Y36.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.22%
OCF growth 3Y5.3%
OCF growth 5Y12.36%