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Market Cap

US$4.1b

Last Updated

2021/04/15 23:08 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Good value 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ORA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

4.7%

ORA

1.6%

US Renewable Energy

1.6%

US Market


1 Year Return

30.4%

ORA

72.4%

US Renewable Energy

57.5%

US Market

Return vs Industry: ORA underperformed the US Renewable Energy industry which returned 72.4% over the past year.

Return vs Market: ORA underperformed the US Market which returned 57.5% over the past year.


Shareholder returns

ORAIndustryMarket
7 Day4.7%1.6%1.6%
30 Day-3.9%-0.4%3.4%
90 Day-26.8%-11.3%8.6%
1 Year31.2%30.4%77.8%72.4%60.3%57.5%
3 Year37.0%34.2%71.7%57.1%62.6%51.9%
5 Year92.3%85.5%181.6%132.4%119.9%95.3%

Long-Term 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?

46.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORA ($79.06) is trading below our estimate of fair value ($147.25)

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


Price To Earnings Ratio

PE vs Industry: ORA is good value based on its PE Ratio (47.7x) compared to the US Renewable Energy industry average (222.7x).

PE vs Market: ORA is poor value based on its PE Ratio (47.7x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: ORA is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: ORA is good value based on its PB Ratio (2.5x) compared to the US Renewable Energy industry average (2.7x).


Future Growth

How is Ormat Technologies forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORA's forecast earnings growth (16.5% per year) is above the savings rate (2%).

Earnings vs Market: ORA's earnings (16.5% per year) are forecast to grow slower than the US market (18.4% per year).

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

Revenue vs Market: ORA's revenue (8.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: ORA's revenue (8.3% 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 (6.6%).


Past Performance

How has Ormat Technologies performed over the past 5 years?

-8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORA has high quality earnings.

Growing Profit Margin: ORA's current net profit margins (12.1%) are higher than last year (11.8%).


Past Earnings Growth Analysis

Earnings Trend: ORA's earnings have declined by 8.2% 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 (-3%) over the past year, making it difficult to compare to the Renewable Energy industry average (-31.3%).


Return on Equity

High ROE: ORA's Return on Equity (5.2%) is considered low.


Financial Health

How is Ormat Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets ($779.2M) exceed its short term liabilities ($248.6M).

Long Term Liabilities: ORA's short term assets ($779.2M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ORA's debt to equity ratio (74.7%) is considered high.

Reducing Debt: ORA's debt to equity ratio has reduced from 83.1% to 74.7% over the past 5 years.

Debt Coverage: ORA's debt is not well covered by operating cash flow (18.2%).

Interest Coverage: ORA's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Dividend

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

0.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORA's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: ORA's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.48%).


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

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

0.8yrs

Average management tenure


CEO

Doron Blachar (52 yo)

0.75

Tenure

US$747,023

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 ($USD747.02K) is below average for companies of similar size in the US market ($USD5.19M).

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


Leadership Team

Experienced Management: ORA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: ORA's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

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$4.077b
  • Shares outstanding: 55.99m
  • Website: https://www.ormat.com

Number of Employees


Location

  • Ormat Technologies, Inc.
  • 6140 Plumas Street
  • Reno
  • Nevada
  • 89519-6075
  • United States

Listings


Biography

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 int...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 23:08
End of Day Share Price2021/04/15 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.