ORMAT TECHNOLOGIES INC (ORA) Stock Fundamental Analysis
NYSE:ORA - New York Stock Exchange, Inc. - US6866881021 - Common Stock - Currency: USD
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. 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
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.
Each year in the past 5 years ORA had a positive operating cash flow.
1.2 Ratios
ORA has a Return On Assets of 2.18%. This is in the better half of the industry: ORA outperforms 75.00% of its industry peers.
ORA has a Return On Equity of 5.10%. This is in the better half of the industry: ORA outperforms 75.00% of its industry peers.
The Return On Invested Capital of ORA (2.66%) 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 3.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 5.1% | ||
| ROIC | 2.66% |
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 14.07%. This is amongst the best in the industry. ORA outperforms 90.00% of its industry peers.
In the last couple of years the Profit Margin of ORA has grown nicely.
ORA's Operating Margin of 19.75% is fine compared to the rest of the industry. ORA outperforms 70.00% of its industry peers.
In the last couple of years the Operating Margin of ORA has declined.
With a Gross Margin value of 30.99%, ORA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ORA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.75% | ||
| PM (TTM) | 14.07% | ||
| GM | 30.99% |
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.
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
ORA has an Altman-Z score of 1.28. 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 (1.28) is better than 70.00% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that ORA is somewhat dependend on debt financing.
ORA has a better Debt to Equity ratio (0.81) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.35
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.91 indicates that ORA may have some problems paying its short term obligations.
With a Current ratio value of 0.91, ORA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
ORA has a Quick Ratio of 0.91. 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 Quick ratio value of 0.80, ORA perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for ORA have decreased by -2.70% in the last year.
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 6.06% in the last year.
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)-2.7%
EPS 3Y15.39%
EPS 5Y7.89%
EPS Q2Q%6.25%
Revenue 1Y (TTM)6.06%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
3.2 Future
The Earnings Per Share is expected to grow by 19.00% 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 8.67% on average per year.
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 3Y9.65%
Revenue Next 5Y8.67%
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 34.20, 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 70.00% of the companies in the same industry.
ORA is valuated rather expensively when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.41, the valuation of ORA can be described as expensive.
Based on the Price/Forward Earnings ratio, ORA is valued a bit cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ORA to the average of the S&P500 Index (22.43), we can say ORA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.2 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
ORA's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.86 |
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.
The decent profitability rating of ORA may justify a higher PE ratio.
PEG (NY)16.07
PEG (5Y)4.33
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.
ORA's Dividend Yield is a higher than the industry average which is at 6.37.
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 | 0.64% |
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 23.53% 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.
DP23.53%
EPS Next 2Y8.85%
EPS Next 3Y11.18%
73.87
-1.38 (-1.83%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners94.86%
Inst Owner Change0.77%
Ins Owners0.31%
Ins Owner Change-114.89%
Market Cap4.48B
Analysts75.38
Price Target85.11 (15.22%)
Short Float %4.25%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.48
Dividend Growth(5Y)1.8%
DP23.53%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.05%
Min EPS beat(2)14.56%
Max EPS beat(2)41.54%
EPS beat(4)4
Avg EPS beat(4)17.32%
Min EPS beat(4)2.62%
Max EPS beat(4)41.54%
EPS beat(8)7
Avg EPS beat(8)19.27%
EPS beat(12)11
Avg EPS beat(12)20.57%
EPS beat(16)15
Avg EPS beat(16)21.45%
Revenue beat(2)0
Avg Revenue beat(2)-3.06%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-2.84%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)1.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.96%
Revenue beat(12)5
Avg Revenue beat(12)-1.13%
Revenue beat(16)6
Avg Revenue beat(16)-0.92%
PT rev (1m)-0.27%
PT rev (3m)-1.54%
EPS NQ rev (1m)-1.15%
EPS NQ rev (3m)-11.01%
EPS NY rev (1m)4.84%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.2 | ||
| Fwd PE | 29.41 | ||
| P/S | 5.09 | ||
| P/FCF | N/A | ||
| P/OCF | 10.9 | ||
| P/B | 1.85 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 14.86 |
EPS(TTM)2.16
EY2.92%
EPS(NY)2.51
Fwd EY3.4%
FCF(TTM)-1.27
FCFYN/A
OCF(TTM)6.78
OCFY9.18%
SpS14.51
BVpS40.01
TBVpS32.54
PEG (NY)16.07
PEG (5Y)4.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.18% | ||
| ROE | 5.1% | ||
| ROCE | 3.43% | ||
| ROIC | 2.66% | ||
| ROICexc | 2.71% | ||
| ROICexgc | 2.97% | ||
| OM | 19.75% | ||
| PM (TTM) | 14.07% | ||
| GM | 30.99% | ||
| 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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.52 | ||
| Cap/Depr | 185.53% | ||
| Cap/Sales | 55.44% | ||
| Interest Coverage | 1.69 | ||
| Cash Conversion | 94.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.28 |
F-Score3
WACC7.5%
ROIC/WACC0.35
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)6.06%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
Revenue Next Year7.83%
Revenue Next 2Y11.05%
Revenue Next 3Y9.65%
Revenue Next 5Y8.67%
EBIT growth 1Y4.3%
EBIT growth 3Y0.91%
EBIT growth 5Y-2.16%
EBIT Next Year189.67%
EBIT Next 3Y53.82%
EBIT Next 5Y35.02%
FCF growth 1Y75.16%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y32.81%
OCF growth 3Y16.66%
OCF growth 5Y11.68%