ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
NYSE:ORA - US6866881021 - Common Stock
91.89 USD
-1.08 (-1.16%)
91.89 USD
0 (0%)
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. While showing a medium growth rate, ORA is valued expensive at the moment.
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.
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.
With a decent Return On Equity value of 5.27%, ORA is doing good in the industry, outperforming 65.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.53%, ORA is in line with its industry, outperforming 55.00% of the companies in the same industry.
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 4.22%.
| 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
With an excellent Profit Margin value of 14.49%, ORA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ORA has grown nicely.
Looking at the Operating Margin, with a value of 19.00%, ORA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
ORA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 28.94%, ORA is doing worse than 65.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
Based on the Altman-Z score of 1.35, 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 1.35, ORA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
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 Debt to Equity ratio of 0.85. This is in the better half of the industry: ORA outperforms 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.35 |
ROIC/WACC0.33
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.70 indicates that ORA may have some problems paying its short term obligations.
ORA's Current ratio of 0.70 is on the low side compared to the rest of the industry. ORA is outperformed by 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.
ORA has a Quick ratio of 0.62. This is in the lower half of the industry: ORA underperforms 70.00% 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.
Looking at the last year, ORA shows a small growth in Revenue. The Revenue has grown by 2.23% in the last year.
ORA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.35% yearly.
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
Based on estimates for the next years, ORA will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.00% on average per year.
Based on estimates for the next years, ORA will show a quite strong growth in Revenue. The Revenue will grow by 9.16% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 41.02 indicates a quite expensive valuation of ORA.
ORA's Price/Earnings ratio is a bit cheaper when compared to the industry. ORA is cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of ORA to the average of the S&P500 Index (27.13), we can say ORA is valued expensively.
ORA is valuated quite expensively with a Price/Forward Earnings ratio of 37.73.
Based on the Price/Forward Earnings ratio, ORA is valued a bit cheaper than 65.00% of the companies in the same industry.
ORA is valuated expensively when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.02 | ||
| Fwd PE | 37.73 |
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 | 17.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ORA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)12.44
PEG (5Y)5.2
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 4.58, ORA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, ORA's dividend is way lower than the S&P500 average.
| 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.
The dividend of ORA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP22.14%
EPS Next 2Y7.18%
EPS Next 3Y10.11%
91.89
-1.08 (-1.16%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.34%
Inst Owner Change1.2%
Ins Owners0.34%
Ins Owner Change0.84%
Market Cap5.58B
Analysts78.57
Price Target97.24 (5.82%)
Short Float %4.02%
Short Ratio4.35
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)8.75%
PT rev (3m)14.25%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)-2.62%
EPS NY rev (1m)3.56%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)3.14%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.02 | ||
| Fwd PE | 37.73 | ||
| P/S | 6.16 | ||
| P/FCF | N/A | ||
| P/OCF | 12.4 | ||
| P/B | 2.24 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 17.55 |
EPS(TTM)2.24
EY2.44%
EPS(NY)2.44
Fwd EY2.65%
FCF(TTM)-1.89
FCFYN/A
OCF(TTM)7.41
OCFY8.06%
SpS14.93
BVpS41.06
TBVpS33.49
PEG (NY)12.44
PEG (5Y)5.2
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 | 1.35 |
F-Score4
WACC7.56%
ROIC/WACC0.33
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%