ORMAT TECHNOLOGIES INC (ORA)
US6866881021 - Common Stock
We assign a fundamental rating of 4 out of 10 to ORA. ORA was compared to 21 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
In the past year ORA was profitable.
In the past year ORA had a positive cash flow from operations.
In the past 5 years ORA has always 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 2.39%, ORA belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
With a decent Return On Equity value of 5.37%, ORA is doing good in the industry, outperforming 76.19% of the companies in the same industry.
The Return On Invested Capital of ORA (3.13%) is better than 66.67% of its industry peers.
ORA had an Average Return On Invested Capital over the past 3 years of 3.66%. This is in line with the industry average of 3.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 5.37% | ||
| ROIC | 3.13% |
ROA(3y)1.74%
ROA(5y)2.03%
ROE(3y)4.08%
ROE(5y)4.66%
ROIC(3y)3.66%
ROIC(5y)4.29%
1.3 Margins
Looking at the Profit Margin, with a value of 15.00%, ORA belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Profit Margin of ORA has grown nicely.
The Operating Margin of ORA (20.08%) is better than 66.67% of its industry peers.
ORA's Operating Margin has declined in the last couple of years.
ORA's Gross Margin of 31.83% is on the low side compared to the rest of the industry. ORA is outperformed by 66.67% of its industry peers.
ORA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.08% | ||
| PM (TTM) | 15% | ||
| GM | 31.83% |
OM growth 3Y-8.38%
OM growth 5Y-7.11%
PM growth 3Y7.35%
PM growth 5Y1.94%
GM growth 3Y-5.79%
GM growth 5Y-3.27%
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 has been reduced compared to a year ago.
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's Altman-Z score of 1.36 is amongst the best of the industry. ORA outperforms 80.95% of its industry peers.
A Debt/Equity ratio of 0.73 indicates that ORA is somewhat dependend on debt financing.
ORA has a better Debt to Equity ratio (0.73) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.36 |
ROIC/WACC0.42
WACC7.43%
2.3 Liquidity
A Current Ratio of 1.20 indicates that ORA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.20, ORA is in line with its industry, outperforming 47.62% of the companies in the same industry.
ORA has a Quick Ratio of 1.08. This is a normal value and indicates that ORA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.08, ORA is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.22% 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 6.44% on average per year.
Looking at the last year, ORA shows a quite strong growth in Revenue. The Revenue has grown by 12.98% in the last year.
The Revenue has been growing slightly by 2.89% on average over the past years.
EPS 1Y (TTM)28.22%
EPS 3Y7.55%
EPS 5Y6.44%
EPS growth Q2Q-19.18%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y5.55%
Revenue growth 5Y2.89%
Revenue growth Q2Q17.45%
3.2 Future
The Earnings Per Share is expected to grow by 12.36% on average over the next years. This is quite good.
Based on estimates for the next years, ORA will show a quite strong growth in Revenue. The Revenue will grow by 11.09% on average per year.
EPS Next Y2.84%
EPS Next 2Y8.37%
EPS Next 3Y12.36%
EPS Next 5YN/A
Revenue Next Year7.32%
Revenue Next 2Y8.53%
Revenue Next 3Y11.09%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 33.63, ORA can be considered very expensive at the moment.
ORA's Price/Earnings ratio is a bit cheaper when compared to the industry. ORA is cheaper than 71.43% of the companies in the same industry.
ORA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.43, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 32.70 indicates a quite expensive valuation of ORA.
66.67% 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 20.51. ORA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.63 | ||
| Fwd PE | 32.7 |
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 | 14.81 |
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.
ORA's earnings are expected to grow with 12.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)11.86
PEG (5Y)5.23
EPS Next 2Y8.37%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, ORA is not a good candidate for dividend investing.
ORA's Dividend Yield is comparable with the industry average which is at 5.18.
Compared to an average S&P500 Dividend Yield of 2.36, ORA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of ORA decreases each year by -1.61%.
ORA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
22.84% of the earnings are spent on dividend by ORA. This is a low number and sustainable payout ratio.
DP22.84%
EPS Next 2Y8.37%
EPS Next 3Y12.36%
ORMAT TECHNOLOGIES INC
NYSE:ORA (5/10/2024, 7:11:08 PM)
After market: 70.29 0 (0%)70.29
+1.36 (+1.97%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.63 | ||
| Fwd PE | 32.7 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)11.86
PEG (5Y)5.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 5.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.08% | ||
| PM (TTM) | 15% | ||
| GM | 31.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)28.22%
EPS 3Y7.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.98%
Revenue growth 3Y5.55%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y