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

1.6%

ORA

2.0%

US Renewable Energy

-0.6%

US Market


1 Year Return

26.6%

ORA

15.0%

US Renewable Energy

0.6%

US Market

ORA outperformed the Renewable Energy industry which returned 14.3% over the past year.

ORA outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

ORAIndustryMarket
7 Day1.6%2.0%-0.6%
30 Day1.2%6.3%2.2%
90 Day16.7%7.7%1.1%
1 Year27.5%26.6%18.9%15.0%2.9%0.6%
3 Year49.4%45.9%40.4%20.3%44.6%35.2%
5 Year188.7%176.4%21.1%-6.6%61.9%44.2%

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

1 month ago | Simply Wall St

Does The Hype Around Ormat Technologies, Inc.'s (NYSE:ORA) Growth Justify Its August Share Price?

Valuation

Is Ormat Technologies undervalued based on future cash flows and its price relative to the stock market?

41.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ormat Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ormat Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ormat Technologies is overvalued based on earnings compared to the US Renewable Energy industry average.

Ormat Technologies is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ormat Technologies is poor value based on expected growth next year.


Price Based on Value of Assets

Ormat Technologies is overvalued based on assets compared to the US Renewable Energy industry average.


Next Steps

Future Growth

How is Ormat Technologies expected 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 Estimates


Future Annual Growth Analysis

Ormat Technologies's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).

Ormat Technologies's earnings are expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).

Ormat Technologies's revenue growth is positive but not above the United States of America market average.

Ormat Technologies's earnings growth is positive but not above the United States of America market average.

Ormat Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ormat Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Ormat Technologies's year on year earnings growth rate has been positive over the past 5 years.

Ormat Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Ormat Technologies's 1-year earnings growth is negative, it can't be compared to the North America Renewable Energy industry average.


Return on Equity

Ormat Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Ormat Technologies used its assets more efficiently than the US Renewable Energy industry average last year based on Return on Assets.


Return on Capital Employed

Ormat Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ormat Technologies's financial position?


Financial Position Analysis

Ormat Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ormat Technologies's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ormat Technologies's level of debt (83.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (134.4% vs 83.3% today).

Debt is not well covered by operating cash flow (18.8%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

0.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ormat Technologies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Ormat Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Ormat Technologies is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Ormat Technologies is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Ormat Technologies's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Ormat Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Isaac Angel (63yo)

5.2yrs

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

Isaac's remuneration is higher than average for companies of similar size in United States of America.

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

5.2yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Ormat Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

3.0yrs

Average Tenure

60.5yo

Average Age

The tenure for the Ormat Technologies board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 5.2yrs
    • Compensation: US$7.98m
  • Etty Rosner (63yo)

    Senior Vice President of Contract Management & Corporate Secretary

    • Tenure: 14.9yrs
  • Zvi Krieger (63yo)

    Executive Vice President of Electricity Segment

    • Tenure: 12yrs
    • Compensation: US$1.15m
  • Uzi Albert (67yo)

    Manager of Logistics & Production of Ormat Systems

    • Tenure: 15.2yrs
  • Doron Blachar (51yo)

    Chief Financial Officer

    • Tenure: 6.4yrs
    • Compensation: US$573.77k
  • Nir Wolf (53yo)

    Executive Vice President of Market Development

    • Tenure: 4.7yrs
  • Bob Sullivan (56yo)

    Executive Vice President of Business Development

    • Tenure: 4.7yrs
    • Compensation: US$976.68k
  • Shlomi Argas (54yo)

    Executive Vice President of Products Segment & Operations

    • Tenure: 1.7yrs
    • Compensation: US$1.21m
  • Smadar Lavi

    VP Corporate Finance and Head of Investor Relations

    • Tenure: 0yrs
  • Hezi Kattan

    General Counsel & CCO

    • Tenure: 1.6yrs

Board Members

  • Stanley Stern (62yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$207.50k
  • Dan Falk (74yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$230.00k
  • Ishay Davidi (57yo)

    Chairman of Ormat Industries

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

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$225.00k
  • Dafna Sharir (51yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$233.00k
  • David Granot (72yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$224.35k
  • Todd Freeland

    Chairman of the Board

    • Tenure: 2.2yrs
    • Compensation: US$324.00k
  • Yuichi Nishigori (62yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$24.00k
  • Stan H. Koyanagi (59yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$24.00k

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$3.733b
  • 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 Analysis2019/09/20 23:50
End of Day Share Price2019/09/20 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.