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 19 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.
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.
ORA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ORA (2.15%) is better than 73.68% of its industry peers.
ORA has a better Return On Equity (5.10%) than 73.68% of its industry peers.
ORA has a Return On Invested Capital of 2.57%. This is in the better half of the industry: ORA outperforms 63.16% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORA is in line with the industry average of 3.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 5.1% | ||
| ROIC | 2.57% |
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's Profit Margin of 14.18% is amongst the best of the industry. ORA outperforms 89.47% of its industry peers.
In the last couple of years the Profit Margin of ORA has grown nicely.
ORA has a better Operating Margin (19.54%) than 68.42% of its industry peers.
ORA's Operating Margin has declined in the last couple of years.
ORA has a Gross Margin (30.13%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ORA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.54% | ||
| PM (TTM) | 14.18% | ||
| GM | 30.13% |
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
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
The number of shares outstanding for ORA has been increased compared to 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 1.39, we must say that ORA is in the distress zone and has some risk of bankruptcy.
ORA has a Altman-Z score of 1.39. This is in the better half of the industry: ORA outperforms 73.68% 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's Debt to Equity ratio of 0.85 is fine compared to the rest of the industry. ORA outperforms 73.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.39 |
ROIC/WACC0.34
WACC7.66%
2.3 Liquidity
ORA has a Current Ratio of 0.97. 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 (0.97) which is in line with its industry peers.
A Quick Ratio of 0.87 indicates that ORA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, ORA is in line with its industry, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for ORA have decreased by -2.70% in the last year.
The Earnings Per Share has been growing slightly by 7.89% on average over the past years.
The Revenue has been growing slightly by 1.95% in the past 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)-2.7%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%6.25%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
3.2 Future
ORA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.00% yearly.
The Revenue is expected to grow by 8.67% on average over the next years. This is quite good.
EPS Next Y-0.26%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
EPS Next 5Y19%
Revenue Next Year8.03%
Revenue Next 2Y11.1%
Revenue Next 3Y9.71%
Revenue Next 5Y8.67%
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 40.17 indicates a quite expensive valuation of ORA.
Based on the Price/Earnings ratio, ORA is valued a bit cheaper than 63.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. ORA is valued slightly more expensive when compared to this.
ORA is valuated quite expensively with a Price/Forward Earnings ratio of 35.87.
63.16% of the companies in the same industry are more expensive than ORA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ORA to the average of the S&P500 Index (35.58), we can say ORA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.17 | ||
| Fwd PE | 35.87 |
4.2 Price Multiples
ORA's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.79 |
4.3 Compensation for Growth
ORA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.09
EPS Next 2Y6.82%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
ORA has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 6.59, ORA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, ORA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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.
The dividend of ORA decreased recently.
Dividend Growth(5Y)1.8%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
23.22% 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.
DP23.22%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
86.76
-0.78 (-0.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change-0.03%
Ins Owners0.36%
Ins Owner Change0.86%
Market Cap5.26B
Analysts75.71
Price Target86.36 (-0.46%)
Short Float %4.91%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.48
Dividend Growth(5Y)1.8%
DP23.22%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.48%
Min EPS beat(2)17.43%
Max EPS beat(2)41.54%
EPS beat(4)4
Avg EPS beat(4)21.02%
Min EPS beat(4)10.57%
Max EPS beat(4)41.54%
EPS beat(8)7
Avg EPS beat(8)21.2%
EPS beat(12)11
Avg EPS beat(12)21.57%
EPS beat(16)15
Avg EPS beat(16)21.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)-0.02%
Revenue beat(8)1
Avg Revenue beat(8)-1.23%
Revenue beat(12)4
Avg Revenue beat(12)-1.44%
Revenue beat(16)6
Avg Revenue beat(16)-0.8%
PT rev (1m)0.79%
PT rev (3m)1.2%
EPS NQ rev (1m)-7.06%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)-2.34%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.17 | ||
| Fwd PE | 35.87 | ||
| P/S | 5.95 | ||
| P/FCF | N/A | ||
| P/OCF | 13.72 | ||
| P/B | 2.14 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 16.79 |
EPS(TTM)2.16
EY2.49%
EPS(NY)2.42
Fwd EY2.79%
FCF(TTM)-3.18
FCFYN/A
OCF(TTM)6.33
OCFY7.29%
SpS14.59
BVpS40.57
TBVpS33.21
PEG (NY)N/A
PEG (5Y)5.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 5.1% | ||
| ROCE | 3.31% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.87% | ||
| OM | 19.54% | ||
| PM (TTM) | 14.18% | ||
| GM | 30.13% | ||
| 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-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 213.44% | ||
| Cap/Sales | 65.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.39 |
F-Score3
WACC7.66%
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)-2.7%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%6.25%
EPS Next Y-0.26%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
EPS Next 5Y19%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
Revenue Next Year8.03%
Revenue Next 2Y11.1%
Revenue Next 3Y9.71%
Revenue Next 5Y8.67%
EBIT growth 1Y4.2%
EBIT growth 3Y0.91%
EBIT growth 5Y-2.16%
EBIT Next Year190.4%
EBIT Next 3Y53.22%
EBIT Next 5Y35.02%
FCF growth 1Y30.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.09%
OCF growth 3Y16.66%
OCF growth 5Y11.68%