NYSE:ORA

Stock Analysis Report

Executive Summary

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, New Zealand, and internationally.

Rewards

Trading at 39.6% below its fair value

Earnings are forecast to grow 13.36% per year

Risk Analysis

Interest payments are not well covered by earnings

Profit margins (12.6%) are lower than last year (20.8%)



Snowflake Analysis

Slightly overvalued with questionable track record.


Similar Companies

Share Price & News

How has Ormat Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ORA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.6%

ORA

2.6%

US Renewable Energy

1.7%

US Market


1 Year Return

41.3%

ORA

23.3%

US Renewable Energy

23.6%

US Market

Return vs Industry: ORA exceeded the US Renewable Energy industry which returned 22.4% over the past year.

Return vs Market: ORA exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

ORAIndustryMarket
7 Day4.6%2.6%1.7%
30 Day2.7%2.4%3.5%
90 Day2.1%4.4%11.7%
1 Year42.2%41.3%27.4%23.3%26.2%23.6%
3 Year51.7%48.1%62.2%45.4%53.2%43.3%
5 Year202.4%189.6%35.9%4.0%75.5%56.1%

Price Volatility Vs. Market

How volatile is Ormat Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ormat Technologies undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORA ($76.34) is trading below our estimate of fair value ($126.49)

Significantly Below Fair Value: ORA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ORA is poor value based on its PE Ratio (41.4x) compared to the Renewable Energy industry average (25.1x).

PE vs Market: ORA is poor value based on its PE Ratio (41.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ORA is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: ORA is overvalued based on its PB Ratio (2.8x) compared to the US Renewable Energy industry average (1.7x).


Next Steps

Future Growth

How is Ormat Technologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORA's forecast earnings growth (13.4% per year) is above the savings rate (1.7%).

Earnings vs Market: ORA's earnings (13.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: ORA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ORA's revenue (6.4% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ORA's revenue (6.4% 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 (7.8%).


Next Steps

Past Performance

How has Ormat Technologies performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORA has high quality earnings.

Growing Profit Margin: ORA's current net profit margins (12.6%) are lower than last year (20.8%).


Past Earnings Growth Analysis

Earnings Trend: ORA's earnings have grown by 8.5% 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 (-35.1%) over the past year, making it difficult to compare to the Renewable Energy industry average (-28.4%).


Return on Equity

High ROE: ORA's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ormat Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets ($432.3M) exceed its short term liabilities ($352.7M).

Long Term Liabilities: ORA's short term assets ($432.3M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: ORA's debt to equity ratio (81.3%) is considered high.

Reducing Debt: ORA's debt to equity ratio has reduced from 132.7% to 81.3% over the past 5 years.

Debt Coverage: ORA's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: ORA's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

Inventory Level: ORA has a high level of physical assets or inventory.

Debt Coverage by Assets: ORA's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

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

0.52%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.1%forecastin3Years0.7%

Current dividend yield vs market & industry

Notable Dividend: ORA's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ORA's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ORA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Ormat Technologies's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Isaac Angel (63yo)

5.5yrs

Tenure

US$7,984,551

Compensation

Mr. Isaac Angel serves as the Chairman and Chief Executive Officer of Ormat Funding Corp. Mr. Angel has been Chief Executive Officer at Ormat Technologies, Inc. since July 1, 2014. Mr. Angel served as the ...


CEO Compensation Analysis

Compensation vs Market: Isaac's total compensation ($USD7.98M) is above average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Isaac's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: ORA's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

62yo

Average Age

Experienced Board: ORA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$51,90418 Dec 19
Shlomi Argas
EntityIndividual
Role
Chief Operating Officer
Executive Vice President of Products Segment & Operations
Shares668
Max PriceUS$77.70
SellUS$112,43526 Nov 19
Byron Wong
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,460
Max PriceUS$77.01
SellUS$51,35618 Nov 19
Zvi Krieger
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Electricity Segment
Shares668
Max PriceUS$76.88

Ownership Breakdown

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


Management Team

  • Isaac Angel (63yo)

    Chief Executive Officer

    • Tenure: 5.5yrs
    • Compensation: US$7.98m
  • Etty Rosner (63yo)

    Senior Vice President of Contract Management & Corporate Secretary

    • Tenure: 15.3yrs
  • Zvi Krieger (63yo)

    Executive Vice President of Electricity Segment

    • Tenure: 12.3yrs
    • Compensation: US$1.15m
  • Uzi Albert (67yo)

    Manager of Logistics & Production of Ormat Systems

    • Tenure: 15.5yrs
  • Doron Blachar (51yo)

    President & CFO

    • Tenure: 0.2yrs
    • Compensation: US$573.77k
  • Nir Wolf (53yo)

    Executive Vice President of Market Development

    • Tenure: 5yrs
  • Bob Sullivan (56yo)

    Executive Vice President of Business Development

    • Tenure: 5yrs
    • Compensation: US$976.68k
  • Shlomi Argas (54yo)

    Executive Vice President of Products Segment & Operations

    • Tenure: 2yrs
    • Compensation: US$1.21m
  • Smadar Lavi

    VP Corporate Finance and Head of Investor Relations

    • Hezi Kattan

      General Counsel & CCO

      • Tenure: 1.9yrs

    Board Members

    • Stanley Stern (62yo)

      Independent Director

      • Tenure: 4.2yrs
      • Compensation: US$207.50k
    • Dan Falk (74yo)

      Independent Director

      • Tenure: 15.2yrs
      • Compensation: US$230.00k
    • Ishay Davidi (57yo)

      Chairman of Ormat Industries

      • Ravit Barniv (55yo)

        Independent Director

        • Tenure: 4.2yrs
        • Compensation: US$225.00k
      • Dafna Sharir (51yo)

        Independent Director

        • Tenure: 1.7yrs
        • Compensation: US$233.00k
      • David Granot (72yo)

        Independent Director

        • Tenure: 7.7yrs
        • Compensation: US$224.35k
      • Todd Freeland

        Independent Chairman of the Board

        • Tenure: 2.5yrs
        • Compensation: US$324.00k
      • Yuichi Nishigori (62yo)

        Independent Director

        • Tenure: 2.5yrs
        • Compensation: US$24.00k
      • Stan H. Koyanagi (59yo)

        Independent Director

        • Tenure: 2.5yrs
        • Compensation: US$24.00k
      • Byron Wong (67yo)

        Independent Director

        • Tenure: 2.5yrs
        • Compensation: US$212.50k

      Company Information

      Ormat Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Ormat Technologies, Inc.
      • Ticker: ORA
      • Exchange: NYSE
      • Founded: 1965
      • Industry: Renewable Electricity
      • Sector: Utilities
      • Market Cap: US$3.998b
      • Shares outstanding: 50.99m
      • Website: https://www.ormat.com

      Number of Employees


      Location

      • Ormat Technologies, Inc.
      • 6140 Plumas Street
      • Reno
      • Nevada
      • 89519
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      ORANYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2004
      HNMDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2004
      ORATASE (The Tel-Aviv Stock Exchange)YesCommon StockILILSNov 2004
      0KDHLSE (London Stock Exchange)YesCommon StockGBUSDNov 2004

      Biography

      Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, New Zealand, and internationally. The company operates through three segments: Electricity, Product, and Other. The Electricity segment develops, builds, owns, and operates geothermal and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal, recovered energy-based electricity generation, and remote power units, such as fossil fuel powered turbo-generators and heavy duty direct-current generators. This segment also provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal, solar photovoltaic, and recovered energy-based power plants. The Product segment serves contractors; developers, owners, and operators of geothermal power plants; and owners and operators of interstate natural gas pipelines, gas processing plants, and cement plants, as well as companies in other energy-intensive industrial processes. The Other segment offers energy storage, demand response, and energy management related services. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 23:53
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.