O.Y. Nofar Energy (TASE:NOFR) Valuation Check After Q3 Revenue Growth But Ongoing Losses

O.Y. Nofar Energy (TASE:NOFR) just released its third quarter and nine month 2025 results, showing higher revenue and a sharply reduced quarterly loss, even as the year to date picture remains firmly in the red.

See our latest analysis for O.Y. Nofar Energy.

The latest earnings update seems to have steadied sentiment, with a 1 day share price return of 3.99 percent and 7 day share price return of 7.20 percent. This is even though the 30 day share price return of negative 10 percent and modest 3 year total shareholder return of 4.76 percent suggest momentum has been choppy rather than firmly established.

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With revenues climbing, quarterly losses narrowing, but year-to-date results still deep in negative territory, is O.Y. Nofar Energy trading below its long-term potential, or are markets already pricing in a sustained recovery in growth?

Price-to-Sales of 10.5x: Is it justified?

On a last close of ₪99.0, O.Y. Nofar Energy trades on a rich price-to-sales multiple that screens as expensive against the broader regional renewables space.

The price-to-sales ratio compares the company’s market value to its trailing revenues, a useful lens for fast growing or still unprofitable renewable energy developers like Nofar.

At 10.5 times sales, investors are paying a substantial premium for each shekel of revenue. This implies confidence in future project build out and improved profitability despite current losses.

That premium looks stretched versus the Asian Renewable Energy industry average of 2.2 times sales. This suggests the market is assigning Nofar a much more optimistic growth and margin profile than its regional peers, even though it only appears inexpensive when stacked against a smaller, higher multiple peer set.

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

Result: Price-to-Sales of 10.5x (OVERVALUED)

However, sustained losses and a rich sales multiple leave little room for execution missteps or weaker project pipelines before sentiment turns quickly.

Find out about the key risks to this O.Y. Nofar Energy narrative.

Build Your Own O.Y. Nofar Energy Narrative

If you see the numbers differently, or would rather dig into the details yourself, you can build a custom view in under three minutes: Do it your way.

A great starting point for your O.Y. Nofar Energy research is our analysis highlighting 1 important warning sign 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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