Ormat Technologies, Inc.
Ormat Technologies, Inc. Fundamental Analysis
Ormat Technologies, Inc. (HNM.F) shows moderate financial fundamentals with a PE ratio of 61.37, profit margin of 14.12%, and ROE of 5.39%. The company generates $1.0B in annual revenue with strong year-over-year growth of 12.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HNM.F's fundamental strength across five key dimensions:
Efficiency Score
WeakHNM.F struggles to generate sufficient returns from assets.
Valuation Score
ModerateHNM.F shows balanced valuation metrics.
Growth Score
ModerateHNM.F shows steady but slowing expansion.
Financial Health Score
WeakHNM.F carries high financial risk with limited liquidity.
Profitability Score
WeakHNM.F struggles to sustain strong margins.
Key Financial Metrics
Is HNM.F Expensive or Cheap?
P/E Ratio
HNM.F trades at 61.37 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HNM.F's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values Ormat Technologies, Inc. at 3.26 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.44 times EBITDA. This signals the market has high growth expectations.
How Well Does HNM.F Make Money?
Net Profit Margin
For every $100 in sales, Ormat Technologies, Inc. keeps $14.12 as profit after all expenses.
Operating Margin
Core operations generate 18.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.39 in profit for every $100 of shareholder equity.
ROA
Ormat Technologies, Inc. generates $2.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ormat Technologies, Inc. generates strong operating cash flow of $393.58M, reflecting robust business health.
Free Cash Flow
Ormat Technologies, Inc. generates weak or negative free cash flow of $-216.44M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.52 in free cash annually.
FCF Yield
HNM.F converts -2.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
61.37
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How HNM.F Stacks Against Its Sector Peers
| Metric | HNM.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 61.37 | 19.58 | Worse (Expensive) |
| ROE | 5.39% | 917.00% | Weak |
| Net Margin | 14.12% | 853.00% | Weak |
| Debt/Equity | 1.10 | 1.42 | Strong (Low Leverage) |
| Current Ratio | 0.77 | 1.37 | Weak Liquidity |
| ROA | 2.19% | -4838.00% (disorted) | Weak |
HNM.F outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ormat Technologies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
19.17%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
23.16%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
7.42%
Industry Style: Defensive, Dividend, Income
Growing