Nofar Energy (NOFR) AI Stock Analysis

• Market Cap: 5.67B
• Dividend Yield: N/A
• Average Volume (3M): 73.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 5.79%
• EPS Growth: -13.05%
• Country: IL
• Employees: 290
• Sector: Energy
• Sector Strength: 52
• Industry: Solar
• EPS (TTM): -12.20
• Shares Outstanding: 38,080,154
• 10 Day Avg. Volume: 62,474
• 30 Day Avg. Volume: 73,625
• PEG Ratio: 1.64
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 9.78
• P/FCF Ratio: -3.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: 13,454.00 ▲(9.38% Upside)

The score is held down primarily by weak financial performance (negative profitability, high leverage, and negative operating/free cash flow). Technicals are supportive due to strong price strength above key moving averages and a positive MACD, but extreme overbought readings raise near-term risk. Valuation is also a drag because the negative P/E indicates underlying losses.

Positive Factors

Stable revenue from long-term PPAs

Long-term PPAs provide predictable, contractually-backed cash inflows that stabilize revenue over multi-year horizons. For a solar developer/operator, this reduces merchant price exposure, supports project-level financing, and underpins steady scaling of the asset base and investment planning.

High EBITDA margin

A 36.5% EBITDA margin indicates efficient operating economics at the plant level and favorable gross cash generation from projects. This structural profitability can absorb maintenance and some overhead, aiding project-level returns and debt servicing if converted into sustained operating cash flow.

Positive revenue and FCF growth trends

Consistent mid-single-digit revenue growth and strong FCF growth rate signal demand traction and improving efficiency as the asset base expands. If operating cash conversion improves, these trends can support deleveraging, reinvestment in projects, and long-term scaling of renewables capacity.

Negative Factors

Negative net margin and EBIT

Sustained negative net and EBIT margins mean the business is not covering operating costs and non-cash charges at the earnings level. Over time this erodes equity value, constrains reinvestment capacity, and forces reliance on financing or asset sales unless operating profitability is restored.

High leverage (debt-to-equity 2.52)

Elevated leverage increases interest and refinancing risk, particularly for a company with negative operating cash flow. Capital-intensive solar projects often use debt, but a D/E above 2.5 reduces financial flexibility, raises default risk, and can limit ability to finance new projects or withstand revenue shocks.

Negative operating and free cash flow in TTM

Negative operating and free cash flow indicate core operations are not self-funding, forcing reliance on external capital. Even with FCF growth, persistent negative cash conversion undermines sustainability, increases financing costs, and impedes maintenance capex and organic expansion without further funding.

Nofar Energy Business Overview & Revenue Model

Company Description

O.Y. Nofar Energy Ltd develops, designs, licenses, constructs, and operates photovoltaic systems on rooftops in Israel. It engages in the initiation, financing, construction, operation, and maintenance of solar power generation systems, wind power generation systems, and battery storage systems in the United States, Poland, Romania, Spain, Italy, England, Serbia and Czech Republic. The company was incorporated in 2011 and is based in Ashdod, Israel.

How the Company Makes Money

Nofar Energy generates revenue primarily through the sale of electricity produced by its solar power plants. The company enters into long-term power purchase agreements (PPAs) with various utilities and corporations, ensuring a steady income stream from the electricity generated. Additionally, Nofar may earn revenue through government incentives and subsidies for renewable energy projects, which are designed to promote clean energy initiatives. Strategic partnerships with technology providers and investors also play a significant role in enhancing its financial position, allowing the company to expand its project portfolio and leverage shared resources for cost-effective operations.

Nofar Energy Financial Statement Overview

Summary

Nofar Energy demonstrates strong revenue growth but faces significant challenges in profitability and cash flow management. The high leverage and negative returns on equity are potential risks, while the negative cash flows indicate liquidity concerns. The company needs to focus on improving profitability and managing its debt levels to enhance financial stability.

Income Statement

Nofar Energy's income statement shows a mixed performance. The TTM data indicates a significant revenue growth rate of 83.9%, which is a positive sign. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low, indicating challenges in cost management. Overall, while revenue growth is strong, profitability remains a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.24, suggesting significant leverage, which could pose financial risks. The return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is moderate, reflecting a balanced asset structure. While the company has a substantial asset base, the high leverage and negative ROE are concerning.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, indicating liquidity challenges. The free cash flow to net income ratio is positive, suggesting some efficiency in converting net income to cash, but the overall cash flow situation is weak. The negative growth in free cash flow highlights ongoing cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	327.97M	313.21M	320.78M	324.57M	360.76M	214.57M
Gross Profit	39.91M	48.74M	2.30M	2.26M	33.73M	33.43M
EBITDA	132.66M	133.55M	61.06M	216.61M	16.16M	-257.45M
Net Income	-74.19M	-26.91M	-88.66M	153.75M	4.38M	-252.22M
Balance Sheet
Total Assets	7.80B	6.23B	5.67B	4.62B	2.17B	1.06B
Cash, Cash Equivalents and Short-Term Investments	821.41M	410.13M	671.40M	736.63M	904.35M	483.63M
Total Debt	4.90B	3.42B	2.53B	1.59B	588.34M	125.16M
Total Liabilities	5.45B	3.82B	2.90B	2.09B	724.79M	234.04M
Stockholders Equity	1.57B	1.63B	1.82B	1.62B	1.39B	824.89M
Cash Flow
Free Cash Flow	-1.28B	-860.62M	-374.38M	-321.99M	-125.70M	-156.96M
Operating Cash Flow	-112.15M	43.25M	-65.64M	-234.61M	-103.65M	-142.43M
Investing Cash Flow	-945.94M	-1.07B	-384.21M	-1.07B	-355.35M	-190.60M
Financing Cash Flow	1.28B	713.26M	890.72M	602.48M	888.89M	810.48M

Nofar Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12300.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NOFR, the sentiment is Positive. The current price of 12300 is above the 20-day moving average (MA) of 12250.00, above the 50-day MA of 10838.08, and above the 200-day MA of 9950.23, indicating a bullish trend. The MACD of 1209.91 indicates Negative momentum. The RSI at 82.21 is Negative, neither overbought nor oversold. The STOCH value of 94.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:NOFR.

Nofar Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
MSKE	56 Neutral	6.87B	―	―	―	―	―
DORL	51 Neutral	7.19B	-18.41	―	―	113.54%	-242.38%
ECNR	49 Neutral	3.18B	-135.93	―	―	-9.53%	-125.66%
AUGN	46 Neutral	110.52M	-6.78	―	―	12.31%	20.67%
NOFR	44 Neutral	5.67B	-71.28	―	―	5.79%	-13.05%