Ormat Technologies, Inc.
Ormat Technologies, Inc. Fundamental Analysis
Ormat Technologies, Inc. (ORA) shows moderate financial fundamentals with a PE ratio of 63.76, profit margin of 10.97%, and ROE of 5.04%. The company generates $1.2B 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 32.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ORA's fundamental strength across five key dimensions:
Efficiency Score
WeakORA struggles to generate sufficient returns from assets.
Valuation Score
WeakORA trades at a premium to fair value.
Growth Score
ModerateORA shows steady but slowing expansion.
Financial Health Score
ModerateORA shows balanced financial health with some risks.
Profitability Score
WeakORA struggles to sustain strong margins.
Key Financial Metrics
Is ORA Expensive or Cheap?
P/E Ratio
ORA trades at 63.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ORA's PEG of 66.31 indicates potential overvaluation.
Price to Book
The market values Ormat Technologies, Inc. at 3.16 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.71 times EBITDA. This is generally considered low.
How Well Does ORA Make Money?
Net Profit Margin
For every $100 in sales, Ormat Technologies, Inc. keeps $10.97 as profit after all expenses.
Operating Margin
Core operations generate 15.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.04 in profit for every $100 of shareholder equity.
ROA
Ormat Technologies, Inc. generates $1.88 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 $328.31M, reflecting robust business health.
Free Cash Flow
Ormat Technologies, Inc. generates weak or negative free cash flow of $-217.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-3.53 in free cash annually.
FCF Yield
ORA converts -2.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
63.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
66.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
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 ORA Stacks Against Its Sector Peers
| Metric | ORA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 63.76 | 19.61 | Worse (Expensive) |
| ROE | 5.04% | 908.00% | Weak |
| Net Margin | 10.97% | 669.00% | Weak |
| Debt/Equity | 1.33 | 1.42 | Neutral |
| Current Ratio | 1.07 | 1.37 | Neutral |
| ROA | 1.88% | -4803.00% (disorted) | Weak |
ORA outperforms its industry in 0 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