ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
USA - NYSE:ORA - US6866881021 - Common Stock
108.69 USD
-1.75 (-1.58%)
108.5 USD
-0.19 (-0.17%)
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. ORA is valied quite expensively at the moment, while 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.
Each year in the past 5 years ORA had a positive operating cash flow.
1.2 Ratios
ORA's Return On Assets of 2.18% is fine compared to the rest of the industry. ORA outperforms 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.27%, ORA is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
ORA has a Return On Invested Capital of 2.53%. This is comparable to the rest of the industry: ORA outperforms 55.00% 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 4.08%.
| 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 has a better Profit Margin (14.49%) than 85.00% of its industry peers.
In the last couple of years the Profit Margin of ORA has grown nicely.
With a decent Operating Margin value of 19.00%, ORA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ORA has declined.
ORA has a Gross Margin of 28.94%. This is in the lower half of the industry: ORA underperforms 70.00% 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
ORA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ORA has more shares outstanding than it did 1 year ago.
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
ORA has an Altman-Z score of 1.55. This is a bad value and indicates that ORA is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ORA (1.55) is better than 75.00% 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 | 1.55 |
ROIC/WACC0.34
WACC7.53%
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.
With a Current ratio value of 0.70, ORA is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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.
ORA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.23%.
Measured over the past years, ORA shows a small growth in Revenue. The Revenue has been growing by 3.35% on average per year.
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 9.16% on average per year.
EPS Next Y2.45%
EPS Next 2Y5.92%
EPS Next 3Y9.65%
EPS Next 5Y19%
Revenue Next Year8.62%
Revenue Next 2Y11.6%
Revenue Next 3Y9.71%
Revenue Next 5Y9.16%
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
With a Price/Earnings ratio of 48.52, 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 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.40. ORA is valued rather expensively when compared to this.
ORA is valuated quite expensively with a Price/Forward Earnings ratio of 45.70.
65.00% 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 22.94. ORA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.52 | ||
| Fwd PE | 45.7 |
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 | 20.06 |
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)19.78
PEG (5Y)6.15
EPS Next 2Y5.92%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
ORA has a yearly dividend return of 0.45%, which is pretty low.
ORA's Dividend Yield is a higher than the industry average which is at 4.39.
Compared to an average S&P500 Dividend Yield of 2.38, ORA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 22.14% 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.
DP22.14%
EPS Next 2Y5.92%
EPS Next 3Y9.65%
108.69
-1.75 (-1.58%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners93.5%
Inst Owner Change0%
Ins Owners0.34%
Ins Owner Change-0.46%
Market Cap6.60B
Analysts80
Price Target98.6 (-9.28%)
Short Float %5.14%
Short Ratio6.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)1.4%
PT rev (3m)14.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)2.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.52 | ||
| Fwd PE | 45.7 | ||
| P/S | 7.28 | ||
| P/FCF | N/A | ||
| P/OCF | 14.67 | ||
| P/B | 2.65 | ||
| P/tB | 3.25 | ||
| EV/EBITDA | 20.06 |
EPS(TTM)2.24
EY2.06%
EPS(NY)2.38
Fwd EY2.19%
FCF(TTM)-1.89
FCFYN/A
OCF(TTM)7.41
OCFY6.82%
SpS14.93
BVpS41.06
TBVpS33.49
PEG (NY)19.78
PEG (5Y)6.15
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 | 1.55 |
F-Score4
WACC7.53%
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 Y2.45%
EPS Next 2Y5.92%
EPS Next 3Y9.65%
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 3Y9.71%
Revenue Next 5Y9.16%
EBIT growth 1Y-3.18%
EBIT growth 3Y0.91%
EBIT growth 5Y-2.16%
EBIT Next Year185.08%
EBIT Next 3Y51.68%
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%