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.

Snowflake

Fundamentals

Imperfect balance sheet 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


Market Performance


7 Day Return

1.1%

ORA

1.3%

US Renewable Energy

0.5%

US Market


1 Year Return

46.5%

ORA

18.4%

US Renewable Energy

6.8%

US Market

Return vs Industry: ORA exceeded the US Renewable Energy industry which returned 18.4% over the past year.

Return vs Market: ORA exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

ORAIndustryMarket
7 Day1.1%1.3%0.5%
30 Day3.4%1.0%-0.8%
90 Day20.7%11.2%-0.9%
1 Year47.6%46.5%22.4%18.4%9.2%6.8%
3 Year64.1%60.3%65.8%41.9%45.6%36.2%
5 Year183.4%171.3%29.9%0.2%63.2%45.4%

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?

43.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ORA ($75.67) is trading above our estimate of fair value ($45.98)

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


Price To Earnings Ratio

PE vs Industry: ORA is poor value based on its PE Ratio (43.3x) compared to the Renewable Energy industry average (19.1x).

PE vs Market: ORA is poor value based on its PE Ratio (43.3x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: ORA is poor value based on its PEG Ratio (3.5x)


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 (1.4x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORA's forecast earnings growth (12.2% per year) is above the savings rate (2.7%).

Earnings vs Market: ORA's earnings (12.2% per year) are forecast to grow slower than the US market (14.6% 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 (7.2% 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 (7.6%).


Next Steps

Past Performance

How has Ormat Technologies performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORA's earnings have grown by 11.5% 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 (-43.8%) over the past year, making it difficult to compare to the Renewable Energy industry average (33.9%).


Return on Equity

High ROE: ORA's Return on Equity (6.5%) is considered low.


Return on Assets

ROA vs Industry: ORA has a higher Return on Assets than the Renewable Energy industry average last year.


Return on Capital Employed

ROCE Improving: ORA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Ormat Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets ($412.4M) exceeds its short term liabilities ($276.6M)

Long Term Liabilities: ORA's short term assets (412.4M) do not cover its long term liabilities (1.4B)


Debt to Equity History and Analysis

Debt Level: ORA's debt to equity ratio (83.3%) is considered high

Reducing Debt: ORA's debt to equity ratio has reduced from 134.4% to 83.3% over the past 5 years.

Debt Coverage: ORA's debt is not well covered by operating cash flow (18.8%).

Interest Coverage: ORA's interest payments on its debt are not well covered by EBIT (2.3x 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 0.3x debt).


Next Steps

Dividend

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

0.54%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ORA's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ORA's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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?

5.3yrs

Average management tenure


CEO

Isaac Angel (63yo)

5.3yrs

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 ($USD7.98M) is about average for companies of similar size in the US market ($USD5.11M).

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

5.3yrs

Average Tenure

59.5yo

Average Age

Experienced Management: ORA's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

62yo

Average Age

Experienced Board: ORA's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$40,98627 Nov 18
David Granot
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares759
Max PriceUS$54.00

Ownership Breakdown


Management Team

  • Isaac Angel (63yo)

    Chief Executive Officer

    • Tenure: 5.3yrs
    • Compensation: US$7.98m
  • Etty Rosner (63yo)

    Senior Vice President of Contract Management & Corporate Secretary

    • Tenure: 15yrs
  • Zvi Krieger (63yo)

    Executive Vice President of Electricity Segment

    • Tenure: 12.1yrs
    • Compensation: US$1.15m
  • Uzi Albert (67yo)

    Manager of Logistics & Production of Ormat Systems

    • Tenure: 15.3yrs
  • Doron Blachar (51yo)

    Chief Financial Officer

    • Tenure: 6.5yrs
    • Compensation: US$573.77k
  • Nir Wolf (53yo)

    Executive Vice President of Market Development

    • Tenure: 4.8yrs
  • Bob Sullivan (56yo)

    Executive Vice President of Business Development

    • Tenure: 4.8yrs
    • Compensation: US$976.68k
  • Shlomi Argas (54yo)

    Executive Vice President of Products Segment & Operations

    • Tenure: 1.8yrs
    • Compensation: US$1.21m
  • Smadar Lavi

    VP Corporate Finance and Head of Investor Relations

    • Tenure: 0yrs
  • Hezi Kattan

    General Counsel & CCO

    • Tenure: 1.7yrs

Board Members

  • Stanley Stern (62yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$207.50k
  • Dan Falk (74yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$230.00k
  • Ishay Davidi (57yo)

    Chairman of Ormat Industries

    • Tenure: 0yrs
  • Ravit Barniv (55yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$225.00k
  • Dafna Sharir (51yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$233.00k
  • David Granot (72yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$224.35k
  • Todd Freeland

    Independent Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$324.00k
  • Yuichi Nishigori (62yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$24.00k
  • Stan H. Koyanagi (59yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$24.00k
  • Byron Wong (67yo)

    Independent Director

    • Tenure: 2.3yrs
    • 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$3.859b
  • 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 operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:50
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.