ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
NYSE:ORA - New York Stock Exchange, Inc. - US6866881021 - Common Stock - Currency: USD
Overall ORA gets a fundamental rating of 4 out of 10. We evaluated ORA against 20 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 valied quite expensively at the moment, while 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.
ORA had positive earnings in each of the past 5 years.
In the past 5 years ORA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ORA (2.15%) is better than 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.10%, ORA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
ORA's Return On Invested Capital of 2.57% is fine compared to the rest of the industry. ORA outperforms 65.00% 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 3.77%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 5.1% | ||
| ROIC | 2.57% |
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 14.18% is amongst the best of the industry. ORA outperforms 90.00% of its industry peers.
ORA's Profit Margin has improved in the last couple of years.
The Operating Margin of ORA (19.54%) is better than 70.00% of its industry peers.
ORA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 30.13%, ORA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
ORA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.54% | ||
| PM (TTM) | 14.18% | ||
| GM | 30.13% |
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.
ORA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ORA has more shares outstanding
The debt/assets ratio for ORA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that ORA is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ORA (1.29) is better than 70.00% 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 has a better Debt to Equity ratio (0.85) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.34
WACC7.6%
2.3 Liquidity
ORA has a Current Ratio of 0.97. This is a bad value and indicates that ORA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.97, ORA is in line with its industry, outperforming 50.00% of the companies in the same industry.
ORA has a Quick Ratio of 0.97. This is a bad value and indicates that ORA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.87, ORA is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
ORA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.70%.
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 1.95%.
ORA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.35% yearly.
EPS 1Y (TTM)-2.7%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%6.25%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
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.
ORA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.67% yearly.
EPS Next Y2.13%
EPS Next 2Y8.85%
EPS Next 3Y11.18%
EPS Next 5Y19%
Revenue Next Year7.83%
Revenue Next 2Y11.05%
Revenue Next 3Y9.62%
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.
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
The Price/Earnings ratio is 36.57, which means the current valuation is very expensive for ORA.
70.00% of the companies in the same industry are more expensive than ORA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ORA to the average of the S&P500 Index (26.59), we can say ORA is valued slightly more expensively.
A Price/Forward Earnings ratio of 31.45 indicates a quite expensive valuation of ORA.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, ORA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.57 | ||
| Fwd PE | 31.45 |
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 | 15.46 |
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.
ORA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)17.19
PEG (5Y)4.63
EPS Next 2Y8.85%
EPS Next 3Y11.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, ORA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.50, ORA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.64, ORA pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
ORA pays out 23.22% 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.
DP23.22%
EPS Next 2Y8.85%
EPS Next 3Y11.18%
79
+1.17 (+1.5%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners94.86%
Inst Owner Change0.85%
Ins Owners0.31%
Ins Owner Change-114.93%
Market Cap4.79B
Analysts74.29
Price Target85.68 (8.46%)
Short Float %4.36%
Short Ratio5.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.48
Dividend Growth(5Y)1.8%
DP23.22%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.48%
Min EPS beat(2)17.43%
Max EPS beat(2)41.54%
EPS beat(4)4
Avg EPS beat(4)21.02%
Min EPS beat(4)10.57%
Max EPS beat(4)41.54%
EPS beat(8)7
Avg EPS beat(8)21.2%
EPS beat(12)11
Avg EPS beat(12)21.57%
EPS beat(16)15
Avg EPS beat(16)21.76%
Revenue beat(2)0
Avg Revenue beat(2)-1.43%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.02%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)-0.02%
Revenue beat(8)1
Avg Revenue beat(8)-1.23%
Revenue beat(12)4
Avg Revenue beat(12)-1.44%
Revenue beat(16)6
Avg Revenue beat(16)-0.8%
PT rev (1m)0.67%
PT rev (3m)-1.03%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)4.84%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-0.35%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.57 | ||
| Fwd PE | 31.45 | ||
| P/S | 5.41 | ||
| P/FCF | N/A | ||
| P/OCF | 12.49 | ||
| P/B | 1.95 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 15.46 |
EPS(TTM)2.16
EY2.73%
EPS(NY)2.51
Fwd EY3.18%
FCF(TTM)-3.18
FCFYN/A
OCF(TTM)6.33
OCFY8.01%
SpS14.59
BVpS40.57
TBVpS33.21
PEG (NY)17.19
PEG (5Y)4.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.15% | ||
| ROE | 5.1% | ||
| ROCE | 3.31% | ||
| ROIC | 2.57% | ||
| ROICexc | 2.62% | ||
| ROICexgc | 2.87% | ||
| OM | 19.54% | ||
| PM (TTM) | 14.18% | ||
| GM | 30.13% | ||
| 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-Score3
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.71 | ||
| Cap/Depr | 213.44% | ||
| Cap/Sales | 65.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.29 |
F-Score3
WACC7.6%
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)-2.7%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%6.25%
EPS Next Y2.13%
EPS Next 2Y8.85%
EPS Next 3Y11.18%
EPS Next 5Y19%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
Revenue Next Year7.83%
Revenue Next 2Y11.05%
Revenue Next 3Y9.62%
Revenue Next 5Y8.67%
EBIT growth 1Y4.2%
EBIT growth 3Y0.91%
EBIT growth 5Y-2.16%
EBIT Next Year190.4%
EBIT Next 3Y53.22%
EBIT Next 5Y35.02%
FCF growth 1Y30.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.09%
OCF growth 3Y16.66%
OCF growth 5Y11.68%