ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
USA - NYSE:ORA - US6866881021 - Common Stock
94 USD
+1.46 (+1.58%)
94 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ORA. ORA was compared to 20 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ORA had positive earnings in the past year.
In the past year ORA had a positive cash flow from operations.
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.
1.2 Ratios
With a decent Return On Assets value of 2.18%, ORA is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ORA's Return On Equity of 5.27% is fine compared to the rest of the industry. ORA outperforms 65.00% of its industry peers.
The Return On Invested Capital of ORA (2.53%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ORA is in line with the industry average of 4.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 5.27% | ||
| ROIC | 2.53% |
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
ORA has a better Profit Margin (14.49%) than 90.00% of its industry peers.
ORA's Profit Margin has improved in the last couple of years.
ORA's Operating Margin of 19.00% 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.
ORA has a worse Gross Margin (28.94%) 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 | 19% | ||
| PM (TTM) | 14.49% | ||
| GM | 28.94% |
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.
Compared to 1 year ago, ORA has more shares outstanding
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 1.36. This is a bad value and indicates that ORA is not financially healthy and even has some risk of bankruptcy.
ORA has a better Altman-Z score (1.36) than 75.00% of its industry peers.
ORA has a Debt/Equity ratio of 0.85. This is a neutral value indicating ORA is somewhat dependend on debt financing.
ORA has a better Debt to Equity ratio (0.85) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.34
WACC7.46%
2.3 Liquidity
ORA has a Current Ratio of 0.70. 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 worse Current ratio (0.70) than 70.00% of its industry peers.
ORA has a Quick Ratio of 0.70. This is a bad value and indicates that ORA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.62, ORA is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
ORA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.90%.
Measured over the past 5 years, ORA shows a small growth in Earnings Per Share. The EPS has been growing by 7.89% on average per year.
ORA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.23%.
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)0.9%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%20%
Revenue 1Y (TTM)2.23%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%9.89%
3.2 Future
The Earnings Per Share is expected to grow by 19.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.16% on average over the next years. This is quite good.
EPS Next Y3.3%
EPS Next 2Y7.18%
EPS Next 3Y10.11%
EPS Next 5Y19%
Revenue Next Year8.62%
Revenue Next 2Y11.6%
Revenue Next 3Y9.86%
Revenue Next 5Y9.16%
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.
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 41.96 indicates a quite expensive valuation of ORA.
Compared to the rest of the industry, the Price/Earnings ratio of ORA indicates a somewhat cheap valuation: ORA is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. ORA is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 38.60, the valuation of ORA can be described as expensive.
65.00% of the companies in the same industry are more expensive than ORA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.88. ORA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.96 | ||
| Fwd PE | 38.6 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ORA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.63 |
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.
ORA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)12.73
PEG (5Y)5.32
EPS Next 2Y7.18%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, ORA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.70, ORA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.52, ORA pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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.
The dividend of ORA decreased recently.
Dividend Growth(5Y)1.8%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
ORA pays out 22.14% of its income as dividend. This is a sustainable payout ratio.
ORA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP22.14%
EPS Next 2Y7.18%
EPS Next 3Y10.11%
94
+1.46 (+1.58%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.34%
Inst Owner Change1.19%
Ins Owners0.34%
Ins Owner Change0.09%
Market Cap5.71B
Analysts78.57
Price Target97.24 (3.45%)
Short Float %5.14%
Short Ratio6.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.48
Dividend Growth(5Y)1.8%
DP22.14%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.31%
Min EPS beat(2)17.43%
Max EPS beat(2)25.2%
EPS beat(4)4
Avg EPS beat(4)24.68%
Min EPS beat(4)14.56%
Max EPS beat(4)41.54%
EPS beat(8)7
Avg EPS beat(8)22.11%
EPS beat(12)11
Avg EPS beat(12)22.91%
EPS beat(16)15
Avg EPS beat(16)23.15%
Revenue beat(2)1
Avg Revenue beat(2)1.89%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)3.8%
Revenue beat(4)1
Avg Revenue beat(4)-0.58%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)3.8%
Revenue beat(8)2
Avg Revenue beat(8)-0.49%
Revenue beat(12)4
Avg Revenue beat(12)-1.26%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)3%
PT rev (3m)13.49%
EPS NQ rev (1m)-1.84%
EPS NQ rev (3m)-4.99%
EPS NY rev (1m)3.56%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.96 | ||
| Fwd PE | 38.6 | ||
| P/S | 6.3 | ||
| P/FCF | N/A | ||
| P/OCF | 12.69 | ||
| P/B | 2.29 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 17.63 |
EPS(TTM)2.24
EY2.38%
EPS(NY)2.44
Fwd EY2.59%
FCF(TTM)-1.89
FCFYN/A
OCF(TTM)7.41
OCFY7.88%
SpS14.93
BVpS41.06
TBVpS33.49
PEG (NY)12.73
PEG (5Y)5.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 5.27% | ||
| ROCE | 3.26% | ||
| ROIC | 2.53% | ||
| ROICexc | 2.57% | ||
| ROICexgc | 2.81% | ||
| OM | 19% | ||
| PM (TTM) | 14.49% | ||
| GM | 28.94% | ||
| FCFM | N/A |
ROA(3y)2%
ROA(5y)1.92%
ROE(3y)4.67%
ROE(5y)4.42%
ROIC(3y)2.95%
ROIC(5y)3.25%
ROICexc(3y)3.03%
ROICexc(5y)3.47%
ROICexgc(3y)3.34%
ROICexgc(5y)3.83%
ROCE(3y)3.78%
ROCE(5y)4.15%
ROICexcg growth 3Y-11.23%
ROICexcg growth 5Y-12.21%
ROICexc growth 3Y-10.01%
ROICexc growth 5Y-12.56%
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%
F-Score4
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 204.28% | ||
| Cap/Sales | 62.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 1.36 |
F-Score4
WACC7.46%
ROIC/WACC0.34
Cap/Depr(3y)248.02%
Cap/Depr(5y)235.6%
Cap/Sales(3y)68.92%
Cap/Sales(5y)63.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.9%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%20%
EPS Next Y3.3%
EPS Next 2Y7.18%
EPS Next 3Y10.11%
EPS Next 5Y19%
Revenue 1Y (TTM)2.23%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%9.89%
Revenue Next Year8.62%
Revenue Next 2Y11.6%
Revenue Next 3Y9.86%
Revenue Next 5Y9.16%
EBIT growth 1Y-3.18%
EBIT growth 3Y0.91%
EBIT growth 5Y-2.16%
EBIT Next Year187.3%
EBIT Next 3Y52.71%
EBIT Next 5Y35.98%
FCF growth 1Y57.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.9%
OCF growth 3Y16.66%
OCF growth 5Y11.68%