Doral Group Renewable Energy Resources (TASE:DORL): Evaluating Valuation After Q3 Revenue Growth and Swing to Net Loss

Doral Group Renewable Energy Resources (TASE:DORL) just posted Q3 results that combine solid revenue growth with a sharp swing into losses, a mix that is forcing investors to reassess the recent rally.

See our latest analysis for Doral Group Renewable Energy Resources.

The Q3 figures landed after a strong run, with the share price at ₪29.9 and a 90 day share price return of almost 90 percent. The three year total shareholder return above 200 percent shows momentum has been building for some time.

Given how quickly sentiment can shift in renewables, this is also a useful moment to see what else is gaining traction across the sector and beyond, including fast growing stocks with high insider ownership.

With revenues surging but profits sinking, investors now face a tougher valuation puzzle: is Doral Group Renewable Energy Resources trading at an attractive discount, or has the market already priced in the company’s ambitious growth plans?

Price-to-Sales of 11.7x: Is it justified?

At a last close of ₪29.9, Doral Group Renewable Energy Resources trades on a rich price-to-sales multiple that leans more toward optimism than caution.

The price-to-sales ratio compares the company’s market value to its annual revenue, a useful lens for loss making renewable energy developers where earnings are not yet meaningful. For Doral, this metric matters because the business is still in a heavy investment phase with negative net income and investors are effectively paying up for future project cash flows rather than current profits.

That premium is not trivial. Doral’s 11.7x price-to-sales multiple is far higher than the broader Asian renewable energy industry average of 2.2x. This signals that the market is assigning the company a growth profile and project pipeline that is markedly stronger than typical peers. Yet compared with a closer peer set, where the average price-to-sales multiple is 17.7x, Doral screens as relatively cheaper. This suggests some investors may see it as a middle ground between sector level value and high growth expectations.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Sales of 11.7x (OVERVALUED)

However, heavy ongoing losses and execution risks across its global project pipeline could quickly undermine confidence if financing costs rise or timelines slip.

Find out about the key risks to this Doral Group Renewable Energy Resources narrative.

Build Your Own Doral Group Renewable Energy Resources Narrative

Ultimately, if you are not convinced by this view or want to dig into the numbers yourself, you can build a tailored story in under three minutes: Do it your way.

A great starting point for your Doral Group Renewable Energy Resources research is our analysis highlighting 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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