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. ORA is quite expensive at the moment. It does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ORA was profitable.
ORA had a positive operating cash flow in the past year.
In the past 5 years ORA has always been profitable.
Each year in the past 5 years ORA had a positive operating cash flow.

1.2 Ratios

ORA has a better Return On Assets (2.19%) than 75.00% of its industry peers.
ORA has a Return On Equity (5.31%) which is in line with its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for ORA 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

With a decent Profit Margin value of 14.12%, ORA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ORA has grown nicely.
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.
ORA's Operating Margin has declined in the last couple of years.
ORA has a worse Gross Margin (28.32%) than 65.00% of its industry peers.
In the last couple of years the Gross Margin of ORA has declined.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, ORA has more shares outstanding
ORA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ORA is higher compared to a year ago.

2.2 Solvency

Based on the Altman-Z score of 1.73, we must say that ORA is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.73, ORA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
ORA has a Debt/Equity ratio of 0.87. This is a neutral value indicating ORA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.87, ORA is in the better half of 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	1.73

ROIC/WACC0.32

WACC7.88%

2.3 Liquidity

A Current Ratio of 0.77 indicates that ORA may have some problems paying 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.
Looking at the Quick ratio, with a value of 0.67, ORA is doing worse than 65.00% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	0.77
Quick Ratio	0.67

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
The Earnings Per Share has been growing slightly by 7.89% on average over the past years.
ORA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

ORA is valuated quite expensively with a Price/Earnings ratio of 55.90.
75.00% of the companies in the same industry are more expensive than ORA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.60. ORA is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 51.34, which means the current valuation is very expensive for ORA.
The rest of the industry has a similar Price/Forward Earnings ratio as ORA.
When comparing the Price/Forward Earnings ratio of ORA to the average of the S&P500 Index (25.83), we can say ORA is valued expensively.

		Industry Rank	Sector Rank
PE	55.9
Fwd PE	51.34

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	21.9

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)13.14

PEG (5Y)7.08

EPS Next 2Y8.45%

EPS Next 3Y9.34%

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5. Dividend

5.1 Amount

ORA has a yearly dividend return of 0.39%, which is pretty low.
Compared to an average industry Dividend Yield of 1.36, ORA pays a bit more dividend than its industry peers.
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 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)1.8%

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.
ORA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP21.81%

EPS Next 2Y8.45%

EPS Next 3Y9.34%

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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 55.9 and the Price/Book (PB) ratio is 3.1.

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.