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ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis

NYSE:ORA - New York Stock Exchange, Inc. - US6866881021 - Common Stock

65.22  -1.23 (-1.85%)

Fundamental Rating

4

Taking everything into account, ORA scores 4 out of 10 in our fundamental rating. ORA was compared to 21 industry peers in the Independent Power and Renewable Electricity Producers industry. While ORA is still in line with the averages on profitability rating, there are concerns on its financial health. ORA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year ORA was profitable.
ORA had a positive operating cash flow in the past year.
ORA had positive earnings in each of the past 5 years.
ORA had a positive operating cash flow in each of the past 5 years.
ORA Yearly Net Income VS EBIT VS OCF VS FCFORA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M

1.2 Ratios

The Return On Assets of ORA (2.12%) is better than 75.00% 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 65.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ORA is in line with the industry average of 4.30%.
Industry RankSector 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%
ORA Yearly ROA, ROE, ROICORA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

ORA has a Profit Margin of 13.33%. This is in the better half of the industry: ORA outperforms 70.00% of its industry peers.
ORA's Profit Margin has improved in the last couple of years.
ORA's Operating Margin of 19.80% is fine compared to the rest of the industry. ORA outperforms 70.00% of its industry peers.
ORA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 31.17%, ORA is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ORA has declined.
Industry RankSector 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%
ORA Yearly Profit, Operating, Gross MarginsORA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 an improved debt to assets ratio.
ORA Yearly Shares OutstandingORA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
ORA Yearly Total Debt VS Total AssetsORA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.2 Solvency

Based on the Altman-Z score of 1.21, we must say that ORA is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 1.21, ORA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ORA has a Debt/Equity ratio of 0.81. This is a neutral value indicating ORA is somewhat dependend on debt financing.
The Debt to Equity ratio of ORA (0.81) is better than 85.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.81
Debt/FCF N/A
Altman-Z 1.21
ROIC/WACC0.42
WACC7.47%
ORA Yearly LT Debt VS Equity VS FCFORA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B

2.3 Liquidity

ORA has a Current Ratio of 0.95. 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 (0.95) which is comparable to the rest of the industry.
A Quick Ratio of 0.81 indicates that ORA may have some problems paying its short term obligations.
With a Quick ratio value of 0.81, ORA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.81
ORA Yearly Current Assets VS Current LiabilitesORA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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5

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.
Looking at the last year, ORA shows a quite strong growth in Revenue. The Revenue has grown by 12.18% in the last year.
Measured over the past years, ORA shows a small growth in Revenue. The Revenue has been growing by 2.89% on average per year.
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 10.34% on average over the next years. This is quite good.
ORA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.33% yearly.
EPS Next Y-8.02%
EPS Next 2Y4.32%
EPS Next 3Y6.95%
EPS Next 5Y10.34%
Revenue Next Year6.94%
Revenue Next 2Y8.64%
Revenue Next 3Y9.62%
Revenue Next 5Y8.33%

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.
ORA Yearly Revenue VS EstimatesORA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M 800M 1B
ORA Yearly EPS VS EstimatesORA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 32.77, ORA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of ORA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.29. ORA is around the same levels.
ORA is valuated quite expensively with a Price/Forward Earnings ratio of 28.67.
ORA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ORA is cheaper than 80.00% of the companies in the same industry.
ORA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 32.77
Fwd PE 28.67
ORA Price Earnings VS Forward Price EarningsORA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

ORA's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14
ORA Per share dataORA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)5.09
EPS Next 2Y4.32%
EPS Next 3Y6.95%

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3

5. Dividend

5.1 Amount

ORA has a yearly dividend return of 0.71%, which is pretty low.
ORA's Dividend Yield is a higher than the industry average which is at 6.37.
With a Dividend Yield of 0.71, ORA pays less dividend than the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 0.71%

5.2 History

The dividend of ORA decreases each year by -1.61%.
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)-1.61%
Div Incr Years0
Div Non Decr Years1
ORA Yearly Dividends per shareORA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

ORA pays out 24.50% of its income as dividend. This is a sustainable payout ratio.
DP24.5%
EPS Next 2Y4.32%
EPS Next 3Y6.95%
ORA Yearly Income VS Free CF VS DividendORA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M -300M
ORA Dividend Payout.ORA Dividend Payout, showing the Payout Ratio.ORA Dividend Payout.PayoutRetained Earnings

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ORMAT TECHNOLOGIES INC

NYSE:ORA (1/22/2025, 1:51:49 PM)

65.22

-1.23 (-1.85%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)11-06 2024-11-06/amc
Earnings (Next)02-19 2025-02-19/amc
Inst Owners97.88%
Inst Owner Change-0.22%
Ins Owners0.31%
Ins Owner Change-117.66%
Market Cap3.95B
Analysts73.33
Price Target87.87 (34.73%)
Short Float %4.35%
Short Ratio4.05
Dividend
Industry RankSector Rank
Dividend Yield 0.71%
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)0%
PT rev (3m)4.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-10.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.82%
Valuation
Industry RankSector Rank
PE 32.77
Fwd PE 28.67
P/S 4.43
P/FCF N/A
P/OCF 10.08
P/B 1.65
P/tB 2.05
EV/EBITDA 14
EPS(TTM)1.99
EY3.05%
EPS(NY)2.27
Fwd EY3.49%
FCF(TTM)-2.28
FCFYN/A
OCF(TTM)6.47
OCFY9.92%
SpS14.72
BVpS39.49
TBVpS31.87
PEG (NY)N/A
PEG (5Y)5.09
Profitability
Industry RankSector 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 RankSector 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 1.21
F-Score4
WACC7.47%
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 2Y4.32%
EPS Next 3Y6.95%
EPS Next 5Y10.34%
Revenue 1Y (TTM)12.18%
Revenue growth 3Y5.55%
Revenue growth 5Y2.89%
Sales Q2Q%1.79%
Revenue Next Year6.94%
Revenue Next 2Y8.64%
Revenue Next 3Y9.62%
Revenue Next 5Y8.33%
EBIT growth 1Y0.24%
EBIT growth 3Y-3.3%
EBIT growth 5Y-4.43%
EBIT Next Year174.25%
EBIT Next 3Y47.77%
EBIT Next 5Y31.82%
FCF growth 1Y36.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y22.22%
OCF growth 3Y5.3%
OCF growth 5Y12.36%