ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ORA - US6866881021 - Common Stock
119.05 USD
+3.7 (+3.21%)
120.84 USD
+1.79 (+1.5%)
We assign a fundamental rating of 4 out of 10 to ORA. ORA was compared to 20 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. 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.
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 2.19%, ORA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
ORA has a Return On Equity of 5.31%. This is comparable to the rest of the industry: ORA outperforms 60.00% of its industry peers.
The Return On Invested Capital of ORA (2.52%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ORA 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 Profit Margin of 14.12%. This is in the better half of the industry: ORA outperforms 80.00% of its industry peers.
ORA's Profit Margin has improved in the last couple of years.
ORA has a better Operating Margin (18.71%) than 75.00% of its industry peers.
ORA's Operating Margin has declined in the last couple of years.
ORA has a worse Gross Margin (28.32%) than 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 1.60, we must say that ORA is in the distress zone and has some risk of bankruptcy.
ORA's Altman-Z score of 1.60 is fine compared to the rest of the industry. ORA outperforms 80.00% of its industry peers.
A Debt/Equity ratio of 0.87 indicates that ORA is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.87, ORA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.6 |
ROIC/WACC0.32
WACC7.76%
2.3 Liquidity
ORA has a Current 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.
With a Current ratio value of 0.77, ORA perfoms like the industry average, outperforming 45.00% of the companies in the same 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's Quick ratio of 0.67 is on the low side compared to the rest of the industry. ORA is outperformed by 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.
ORA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.89% yearly.
ORA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
ORA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.35% yearly.
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 2Y13.54%
Revenue Next 3Y11.09%
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.
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
The Price/Earnings ratio is 51.99, which means the current valuation is very expensive for ORA.
Based on the Price/Earnings ratio, ORA is valued a bit 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 (27.19), we can say ORA is valued expensively.
With a Price/Forward Earnings ratio of 47.86, 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 65.00% of the companies are valued more expensively.
ORA is valuated expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.99 | ||
| Fwd PE | 47.86 |
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 | 20.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)13.29
PEG (5Y)6.59
EPS Next 2Y8.32%
EPS Next 3Y9.27%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, ORA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.43, ORA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.92, ORA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
ORA pays out 21.81% of its income as dividend. This is a sustainable payout ratio.
ORA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.81%
EPS Next 2Y8.32%
EPS Next 3Y9.27%
119.05
+3.7 (+3.21%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners91.44%
Inst Owner Change0.04%
Ins Owners0.29%
Ins Owner Change-1.72%
Market Cap7.24B
Revenue(TTM)944.25M
Net Income(TTM)133.37M
Analysts80
Price Target123.83 (4.02%)
Short Float %4.87%
Short Ratio4.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Yearly Dividend0.48
Dividend Growth(5Y)1.8%
DP21.81%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.05%
Min EPS beat(2)8.9%
Max EPS beat(2)25.2%
EPS beat(4)4
Avg EPS beat(4)23.27%
Min EPS beat(4)8.9%
Max EPS beat(4)41.54%
EPS beat(8)8
Avg EPS beat(8)15.11%
EPS beat(12)12
Avg EPS beat(12)21.5%
EPS beat(16)16
Avg EPS beat(16)21.09%
Revenue beat(2)2
Avg Revenue beat(2)4.66%
Min Revenue beat(2)3.8%
Max Revenue beat(2)5.53%
Revenue beat(4)2
Avg Revenue beat(4)1.62%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)5.53%
Revenue beat(8)3
Avg Revenue beat(8)0.35%
Revenue beat(12)4
Avg Revenue beat(12)-1.03%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)3.23%
PT rev (3m)25.59%
EPS NQ rev (1m)-2.17%
EPS NQ rev (3m)-6.92%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.99 | ||
| Fwd PE | 47.86 | ||
| P/S | 7.66 | ||
| P/FCF | N/A | ||
| P/OCF | 18.62 | ||
| P/B | 2.88 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 20.24 |
EPS(TTM)2.29
EY1.92%
EPS(NY)2.49
Fwd EY2.09%
FCF(TTM)-3.52
FCFYN/A
OCF(TTM)6.39
OCFY5.37%
SpS15.54
BVpS41.29
TBVpS33.89
PEG (NY)13.29
PEG (5Y)6.59
Graham Number46.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 5.31% | ||
| ROCE | 3.25% | ||
| ROIC | 2.52% | ||
| ROICexc | 2.56% | ||
| ROICexgc | 2.79% | ||
| OM | 18.71% | ||
| PM (TTM) | 14.12% | ||
| GM | 28.32% | ||
| 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%
ROICexgc growth 3Y-11.23%
ROICexgc 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-Score5
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 211.5% | ||
| Cap/Sales | 63.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.22% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 1.6 |
F-Score5
WACC7.76%
ROIC/WACC0.32
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)15.08%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%13.89%
EPS Next Y3.91%
EPS Next 2Y8.32%
EPS Next 3Y9.27%
EPS Next 5Y23.13%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%17.92%
Revenue Next Year9.92%
Revenue Next 2Y13.54%
Revenue Next 3Y11.09%
Revenue Next 5Y9.82%
EBIT growth 1Y0.2%
EBIT growth 3Y0.91%
EBIT growth 5Y-2.16%
EBIT Next Year185.43%
EBIT Next 3Y51.61%
EBIT Next 5Y37.5%
FCF growth 1Y40.44%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.66%
OCF growth 3Y16.66%
OCF growth 5Y11.68%
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 51.99 and the Price/Book (PB) ratio is 2.88.
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.