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 19 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.
ORA had a positive operating cash flow in the past year.
ORA had positive earnings in each of the past 5 years.
ORA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ORA has a Return On Assets of 2.15%. This is in the better half of the industry: ORA outperforms 73.68% of its industry peers.
ORA has a Return On Equity of 5.10%. This is in the better half of the industry: ORA outperforms 73.68% of its industry peers.
ORA has a better Return On Invested Capital (2.57%) than 63.16% 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 3.81%.
| 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 has a better Profit Margin (14.18%) than 89.47% 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 19.54%, ORA is doing good in the industry, outperforming 68.42% of the companies in the same industry.
ORA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 30.13%, ORA perfoms like the industry average, outperforming 42.11% of the companies in the same industry.
In the last couple of years the Gross Margin of ORA has declined.
| 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
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
The debt/assets ratio for ORA is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.40, we must say that ORA is in the distress zone and has some risk of bankruptcy.
ORA has a Altman-Z score of 1.40. This is in the better half of the industry: ORA outperforms 73.68% 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.
With a decent Debt to Equity ratio value of 0.85, ORA is doing good in the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.4 |
ROIC/WACC0.33
WACC7.69%
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.
ORA's Current ratio of 0.97 is in line compared to the rest of the industry. ORA outperforms 42.11% of its industry peers.
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.
ORA has a Quick ratio (0.87) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for ORA have decreased by -2.70% in the last year.
Measured over the past 5 years, ORA shows a small growth in Earnings Per Share. The EPS has been growing by 7.89% on average per year.
Looking at the last year, ORA shows a small growth in Revenue. The Revenue has grown by 1.95% 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)1.95%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
3.2 Future
Based on estimates for the next years, ORA will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.00% on average per year.
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 Y-0.26%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
EPS Next 5Y19%
Revenue Next Year8.03%
Revenue Next 2Y11.1%
Revenue Next 3Y9.71%
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.
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
ORA is valuated quite expensively with a Price/Earnings ratio of 40.89.
Compared to the rest of the industry, the Price/Earnings ratio of ORA indicates a somewhat cheap valuation: ORA is cheaper than 63.16% of the companies listed in the same industry.
ORA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.48.
With a Price/Forward Earnings ratio of 36.51, 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 63.16% of the companies are valued more expensively.
ORA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.89 | ||
| Fwd PE | 36.51 |
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 | 16.9 |
4.3 Compensation for Growth
The decent profitability rating of ORA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.18
EPS Next 2Y6.82%
EPS Next 3Y8.85%
5. Dividend
5.1 Amount
ORA has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 6.59, ORA pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.54, ORA pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
23.22% of the earnings are spent on dividend by ORA. This is a low number and sustainable payout ratio.
ORA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.22%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
88.32
+0.86 (+0.98%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners92.5%
Inst Owner Change-0.03%
Ins Owners0.36%
Ins Owner Change0.86%
Market Cap5.36B
Analysts75.71
Price Target86.36 (-2.22%)
Short Float %4.91%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)0.79%
PT rev (3m)1.2%
EPS NQ rev (1m)-7.06%
EPS NQ rev (3m)-7.1%
EPS NY rev (1m)-2.34%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)-0.44%
Revenue NQ rev (3m)-1.63%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.89 | ||
| Fwd PE | 36.51 | ||
| P/S | 6.05 | ||
| P/FCF | N/A | ||
| P/OCF | 13.96 | ||
| P/B | 2.18 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 16.9 |
EPS(TTM)2.16
EY2.45%
EPS(NY)2.42
Fwd EY2.74%
FCF(TTM)-3.18
FCFYN/A
OCF(TTM)6.33
OCFY7.16%
SpS14.59
BVpS40.57
TBVpS33.21
PEG (NY)N/A
PEG (5Y)5.18
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 | 1.4 |
F-Score3
WACC7.69%
ROIC/WACC0.33
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 Y-0.26%
EPS Next 2Y6.82%
EPS Next 3Y8.85%
EPS Next 5Y19%
Revenue 1Y (TTM)1.95%
Revenue growth 3Y9.88%
Revenue growth 5Y3.35%
Sales Q2Q%2.5%
Revenue Next Year8.03%
Revenue Next 2Y11.1%
Revenue Next 3Y9.71%
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%