ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
NYSE:ORA - New York Stock Exchange, Inc. - US6866881021 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to ORA. ORA was compared to 19 industry peers in the Independent Power and Renewable Electricity Producers industry. ORA has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year ORA had a positive cash flow from operations.
Each year in the past 5 years ORA has been profitable.
In the past 5 years ORA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.18%, ORA is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
ORA has a better Return On Equity (5.27%) than 73.68% of its industry peers.
ORA has a Return On Invested Capital of 2.53%. 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 3.74%.
| 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's Profit Margin of 14.49% is amongst the best of the industry. ORA outperforms 94.74% of its industry peers.
In the last couple of years the Profit Margin of ORA has grown nicely.
The Operating Margin of ORA (19.00%) is better than 68.42% of its industry peers.
In the last couple of years the Operating Margin of ORA has declined.
ORA's Gross Margin of 28.94% is in line compared to the rest of the industry. ORA outperforms 42.11% of its industry peers.
ORA's Gross Margin has declined in the last couple of years.
| 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.
The debt/assets ratio for ORA is higher compared to a year ago.
2.2 Solvency
ORA has an Altman-Z score of 1.30. This is a bad value and indicates that ORA is not financially healthy and even has some risk of bankruptcy.
ORA has a Altman-Z score of 1.30. 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 | 1.3 |
ROIC/WACC0.34
WACC7.54%
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.
The Current ratio of ORA (0.70) is worse than 68.42% 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.
ORA's Quick ratio of 0.62 is on the low side compared to the rest of the industry. ORA is outperformed by 68.42% of its industry peers.
| 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%.
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 2.23%.
The Revenue has been growing slightly by 3.35% on average over the past years.
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
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.
Based on estimates for the next years, ORA will show a quite strong growth in Revenue. The Revenue will grow by 8.67% on average per year.
EPS Next Y-0.26%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
EPS Next 5Y19%
Revenue Next Year7.68%
Revenue Next 2Y11.35%
Revenue Next 3Y9.93%
Revenue Next 5Y8.67%
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.
4. Valuation
4.1 Price/Earnings Ratio
ORA is valuated quite expensively with a Price/Earnings ratio of 39.08.
Based on the Price/Earnings ratio, ORA is valued a bit cheaper than 73.68% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. ORA is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 36.20, ORA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, ORA is valued a bit cheaper than the industry average as 63.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.09, ORA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.08 | ||
| Fwd PE | 36.2 |
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 | 16.83 |
4.3 Compensation for Growth
The decent profitability rating of ORA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)4.95
EPS Next 2Y6.82%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
ORA has a yearly dividend return of 0.55%, which is pretty low.
ORA's Dividend Yield is a higher than the industry average which is at 4.80.
Compared to an average S&P500 Dividend Yield of 2.40, ORA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
22.14% 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.
DP22.14%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
87.55
+0.87 (+1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.34%
Inst Owner Change-1.22%
Ins Owners0.34%
Ins Owner Change0.86%
Market Cap5.31B
Analysts78.57
Price Target94.41 (7.84%)
Short Float %4.79%
Short Ratio5.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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)19.9%
Min EPS beat(2)17.43%
Max EPS beat(2)22.36%
EPS beat(4)4
Avg EPS beat(4)23.97%
Min EPS beat(4)14.56%
Max EPS beat(4)41.54%
EPS beat(8)7
Avg EPS beat(8)21.76%
EPS beat(12)11
Avg EPS beat(12)22.68%
EPS beat(16)15
Avg EPS beat(16)22.97%
Revenue beat(2)1
Avg Revenue beat(2)1.78%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)3.59%
Revenue beat(4)1
Avg Revenue beat(4)-0.64%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)3.59%
Revenue beat(8)2
Avg Revenue beat(8)-0.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.28%
Revenue beat(16)7
Avg Revenue beat(16)-0.48%
PT rev (1m)9.32%
PT rev (3m)10.92%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-9.88%
EPS NY rev (1m)0%
EPS NY rev (3m)2.39%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-1.89%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.08 | ||
| Fwd PE | 36.2 | ||
| P/S | 5.86 | ||
| P/FCF | N/A | ||
| P/OCF | 11.8 | ||
| P/B | 2.13 | ||
| P/tB | 2.61 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)2.24
EY2.56%
EPS(NY)2.42
Fwd EY2.76%
FCF(TTM)-1.9
FCFYN/A
OCF(TTM)7.42
OCFY8.47%
SpS14.94
BVpS41.1
TBVpS33.52
PEG (NY)N/A
PEG (5Y)4.95
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 | 1.3 |
F-Score4
WACC7.54%
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 Y-0.26%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
EPS Next 5Y19%
Revenue 1Y (TTM)2.23%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%9.89%
Revenue Next Year7.68%
Revenue Next 2Y11.35%
Revenue Next 3Y9.93%
Revenue Next 5Y8.67%
EBIT growth 1Y-3.18%
EBIT growth 3Y0.91%
EBIT growth 5Y-2.16%
EBIT Next Year187.3%
EBIT Next 3Y52.71%
EBIT Next 5Y35.02%
FCF growth 1Y57.51%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.9%
OCF growth 3Y16.66%
OCF growth 5Y11.68%