ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORA - US6866881021 - Common Stock
123.485 USD
+0.48 (+0.39%)
Taking everything into account, ORA scores 4 out of 10 in our fundamental rating. 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- ORA had positive earnings in the past year.
- ORA had a positive operating cash flow in the past year.
- Each year in the past 5 years ORA has been profitable.
- ORA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ORA has a Return On Assets of 2.19%. This is in the better half of the industry: ORA outperforms 75.00% of its industry peers.
- ORA has a Return On Equity (5.31%) which is in line with its industry peers.
- ORA has a Return On Invested Capital of 2.52%. This is comparable to the rest of the industry: ORA outperforms 60.00% of its industry peers.
- ORA had an Average Return On Invested Capital over the past 3 years of 2.95%. This 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
- ORA has a better Profit Margin (14.12%) than 80.00% of its industry peers.
- In the last couple of years the Profit Margin of ORA has grown nicely.
- ORA's Operating Margin of 18.71% is fine compared to the rest of the industry. ORA outperforms 75.00% of its industry peers.
- In the last couple of years the Operating Margin of ORA has declined.
- ORA's Gross Margin of 28.32% is on the low side compared to the rest of the industry. ORA is outperformed by 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%
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
- Compared to 5 years ago, ORA has more shares outstanding
- Compared to 1 year ago, ORA has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.68, 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 1.68, ORA belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.87 indicates that ORA is somewhat dependend on debt financing.
- The Debt to Equity ratio of ORA (0.87) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.68 |
ROIC/WACC0.32
WACC7.85%
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 (0.77) which is comparable to the rest of the industry.
- 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.
- ORA has a Quick ratio of 0.67. This is in the lower half of the industry: ORA underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 15.08% over the past year.
- 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.
- Looking at the last year, ORA shows a small growth in Revenue. The Revenue has grown by 6.07% in the last 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)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
- The Earnings Per Share is expected to grow by 23.13% on average over the next years. This is a very strong growth
- Based on estimates for the next years, ORA will show a quite strong growth in Revenue. The Revenue will grow by 9.82% on average per year.
EPS Next Y3.91%
EPS Next 2Y8.32%
EPS Next 3Y9.27%
EPS Next 5Y23.13%
Revenue Next Year9.92%
Revenue Next 2Y13.59%
Revenue Next 3Y10.63%
Revenue Next 5Y9.82%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 53.92 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, ORA is valued quite expensively.
- ORA is valuated quite expensively with a Price/Forward Earnings ratio of 49.64.
- ORA's Price/Forward Earnings is on the same level as the industry average.
- ORA is valuated expensively when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.92 | ||
| Fwd PE | 49.64 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ORA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 21.25 |
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)13.78
PEG (5Y)6.83
EPS Next 2Y8.32%
EPS Next 3Y9.27%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.41%, ORA is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.64, 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 | 0.41% |
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.
- The dividend of ORA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP21.81%
EPS Next 2Y8.32%
EPS Next 3Y9.27%
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 53.92 and the Price/Book (PB) ratio is 2.99.
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 3.91% in the next year.