Should Ormat Technologies Inc (NYSE:ORA) Be Your Next Stock Pick?

Attractive stocks have exceptional fundamentals. In the case of Ormat Technologies Inc (NYSE:ORA), there's is a company with great financial health as well as a a great track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Ormat Technologies here.

Solid track record with adequate balance sheet

ORA delivered a bottom-line expansion of 64.91% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did ORA outperformed its past performance, its growth also exceeded the Renewable Energy industry expansion, which generated a -12.14% earnings growth. This is an optimistic signal for the future. ORA's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. ORA's has produced operating cash levels of 0.25x total debt over the past year, which implies that ORA's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

Next Steps:

For Ormat Technologies, I've compiled three fundamental aspects you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for ORA’s future growth? Take a look at our free research report of analyst consensus for ORA’s outlook.
2. Valuation: What is ORA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ORA is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ORA? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.