Ormat Technologies (NYSE:ORA) - Share price, News & Analysis

Q: What is the Fair Price of ORA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ORA ($74.09) is trading above our estimate of [[fair value]] ($14.36)

ORA fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	1/6
Financial Health	0/6
Dividends	0/6

ORA Stock Overview

Rewards

Earnings are forecast to grow 20.21% per year

Risk Analysis

Interest payments are not well covered by earnings

Significant insider selling over the past 3 months

Ormat Technologies Competitors

NextEra Energy Partners

NYSE:NEP

US$6.4b

Montauk Renewables

NasdaqCM:MNTK

US$1.6b

Altus Power

NYSE:AMPS

US$1.1b

Clearway Energy

NYSE:CWEN.A

US$6.8b

Price History & Performance

Summary of all time highs, changes and price drops for Ormat Technologies
Historical stock prices
Current Share Price	US$74.09
52 Week High	US$88.52
52 Week Low	US$60.32
Beta	0.46
1 Month Change	-12.34%
3 Month Change	-9.66%
1 Year Change	5.53%
3 Year Change	15.68%
5 Year Change	26.20%
Change since IPO	372.81%

Recent News & Updates

Apr 26

Ormat Technologies: A Cleaner And Profitable Future

Ormat Technologies provides geothermal and alternative energy solutions to various countries across the globe. The alternative and clean energy industries experienced rapid growth and are set to continue as world economies battle climate change. Ormat has experienced slow growth in the past but is poised to improve its position as it focuses on long-term success.

Shareholder Returns

	ORA	US Renewable Energy	US Market
7D	0.6%	4.3%	6.3%
1Y	5.5%	-8.6%	-18.8%

Return vs Industry: ORA exceeded the US Renewable Energy industry which returned -7.9% over the past year.

Return vs Market: ORA exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is ORA's price volatile compared to industry and market?
ORA volatility
ORA Average Weekly Movement	5.6%
Renewable Energy Industry Average Movement	11.2%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	3.2%

Stable Share Price: ORA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ORA's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1965	1,385	Doron Blachar	https://www.ormat.com

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally. It operates through three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity.

Ormat Technologies Fundamentals Summary

How do Ormat Technologies's earnings and revenue compare to its market cap?
ORA fundamental statistics
Market Cap	US$4.15b
Earnings (TTM)	US$65.26m
Revenue (TTM)	US$680.44m

63.7x

P/E Ratio

6.1x

P/S Ratio

Is ORA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORA income statement (TTM)
Revenue	US$680.44m
Cost of Revenue	US$435.40m
Gross Profit	US$245.04m
Other Expenses	US$179.78m
Earnings	US$65.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.16
Gross Margin	36.01%
Net Profit Margin	9.59%
Debt/Equity Ratio	92.1%

How did ORA perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

41%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is ORA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ORA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ORA. This is calculated by dividing ORA's market cap by their current preferred multiple.
What is ORA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$4.15b

ORA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	8.9x
Enterprise Value/EBITDA	17.1x
PEG Ratio	3.2x

Price to Earnings Ratio vs Peers

How does ORA's PE Ratio compare to its peers?

ORA PE Ratio vs Peers

The above table shows the PE ratio for ORA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	130.3x
NEP NextEra Energy Partners	81.3x	26.2%	US$6.4b
MNTK Montauk Renewables	184.1x	38.7%	US$1.6b
AMPS Altus Power	17x	-41.9%	US$1.1b
CWEN.A Clearway Energy	238.8x	22.1%	US$6.8b
ORA Ormat Technologies	63.7x	20.2%	US$4.2b

Forward PE

Price-To-Earnings vs Peers: ORA is good value based on its Price-To-Earnings Ratio (63.7x) compared to the peer average (130.3x).

Price to Earnings Ratio vs Industry

How does ORA's PE Ratio compare vs other companies in the Global Renewable Energy Industry?

Price-To-Earnings vs Industry: ORA is expensive based on its Price-To-Earnings Ratio (63.7x) compared to the US Renewable Energy industry average (61.8x)

Price to Earnings Ratio vs Fair Ratio

What is ORA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ORA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	63.7x
Fair PE Ratio	27.5x

Price-To-Earnings vs Fair Ratio: ORA is expensive based on its Price-To-Earnings Ratio (63.7x) compared to the estimated Fair Price-To-Earnings Ratio (27.5x).

Share Price vs Fair Value

What is the Fair Price of ORA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ORA ($74.09) is trading above our estimate of fair value ($14.36)

Significantly Below Fair Value: ORA is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: ORA is poor value based on its PEG Ratio (3.2x)

Discover undervalued companies

Future Growth

How is Ormat Technologies forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORA's forecast earnings growth (20.2% per year) is above the savings rate (1.9%).

Earnings vs Market: ORA's earnings (20.2% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: ORA's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ORA's revenue (10.6% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: ORA's revenue (10.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ORA's Return on Equity is forecast to be low in 3 years time (8.6%).

Discover growth companies

Past Performance

How has Ormat Technologies performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-13.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORA has high quality earnings.

Growing Profit Margin: ORA's current net profit margins (9.6%) are lower than last year (11%).

Past Earnings Growth Analysis

Earnings Trend: ORA's earnings have declined by 13% per year over the past 5 years.

Accelerating Growth: ORA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ORA had negative earnings growth (-12.6%) over the past year, making it difficult to compare to the Renewable Energy industry average (-12.6%).

Return on Equity

High ROE: ORA's Return on Equity (4%) is considered low.

Discover strong past performing companies

Financial Health

How is Ormat Technologies's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ORA's short term assets ($508.0M) do not cover its short term liabilities ($584.0M).

Long Term Liabilities: ORA's short term assets ($508.0M) do not cover its long term liabilities ($1.8B).

Debt to Equity History and Analysis

Debt Level: ORA's net debt to equity ratio (83.5%) is considered high.

Reducing Debt: ORA's debt to equity ratio has increased from 79.5% to 92.1% over the past 5 years.

Debt Coverage: ORA's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: ORA's interest payments on its debt are not well covered by EBIT (1.9x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Ormat Technologies's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.65%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ORA's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: ORA's dividend (0.65%) is low compared to the top 25% of dividend payers in the US market (4.23%).

Stability and Growth of Payments

Stable Dividend: ORA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ORA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: ORA is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: ORA is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure

CEO

Doron Blachar (53 yo)

1.92yrs

Tenure

US$1,074,687

Compensation

Mr. Doron Blachar has been Chief Executive Officer of Ormat Technologies, Inc. since July 1, 2020 and served its President since November 6, 2019 until January 01, 2021. Mr. Blachar serves as the Chief Fin...

CEO Compensation Analysis

Compensation vs Market: Doron's total compensation ($USD1.07M) is below average for companies of similar size in the US market ($USD6.87M).

Compensation vs Earnings: Doron's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ORA's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: ORA's board of directors are considered experienced (4.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ORA insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31