Nofar Energy (NOFR) AI Stock Analysis

• Market Cap: ₪6.20B
• 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: 38,232,870
• 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: 15,724.00 ▲(27.84% 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

Contracted revenue from long-term PPAs

Long-term PPAs provide predictable, contracted cash flows that de-risk merchant exposure and support project financing. This structural revenue stability helps underwrite capex and operations and remains relevant over months as contracts typically span years.

High project-level profitability (EBITDA)

A 36.54% EBITDA margin indicates strong project-level economics and operational efficiency on installed assets. That margin cushion can sustain fixed costs, support reinvestment or debt servicing if converted into operating cash, and underpins long-term asset viability.

Consistent top-line growth

Mid-single-digit revenue growth shows steady expansion of generation capacity or contract wins. Sustained top-line growth helps absorb fixed costs and can drive margin improvement via operating leverage if maintained across subsequent quarters.

Negative Factors

Negative operating and free cash flow

Negative operating and free cash flow signal the core business is not generating sufficient cash to fund operations or reinvestment. This creates structural reliance on external financing, raising refinancing and liquidity risk over the medium term.

High financial leverage

A debt-to-equity of 2.52 and low equity ratio indicate significant leverage and limited balance-sheet cushion. High leverage increases interest burden and refinancing vulnerability, constraining flexibility to fund projects or absorb shocks over coming months.

Negative net margin and ROE

A -28% net margin and negative ROE reflect losses after financing and taxes and indicate the company is not generating shareholder returns. Persistent negative profitability undermines internal capital generation and long-term sustainability without corrective actions.

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

Weak financial health overall: revenue grew 6.05% (TTM) but profitability is poor with a -28.28% net margin and negative EBIT margin. Balance sheet leverage is high (debt-to-equity 2.52) with negative ROE (-5.15%). Cash flow is a key concern with negative operating cash flow and free cash flow in the TTM.

Income Statement

Nofar Energy's income statement shows a mixed performance. The company has experienced revenue growth of 6.05% in the TTM, indicating a positive trend. However, the net profit margin is negative at -28.28%, reflecting ongoing profitability challenges. The gross profit margin is relatively low at 12.26%, and the EBIT margin is also negative, suggesting operational inefficiencies. Despite a strong EBITDA margin of 36.54%, the overall profitability remains a concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.52, indicating significant leverage and potential financial risk. The return on equity is negative at -5.15%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 20.13%, suggesting a moderate level of equity financing. Overall, the balance sheet reflects financial instability and high leverage.

Cash Flow

Cash flow analysis shows a concerning picture with negative operating cash flow and free cash flow in the TTM. The free cash flow growth rate is positive at 22.64%, but the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is high at 15.62, suggesting reliance on non-operational activities for cash generation. Overall, the cash flow situation is weak and requires improvement.

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: Positive
• RSI: Negative
• STOCH: Neutral

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 below the 20-day moving average (MA) of 15076.50, below the 50-day MA of 12391.92, and above the 200-day MA of 10437.11, indicating a bullish trend. The MACD of 1035.80 indicates Positive momentum. The RSI at 81.83 is Negative, neither overbought nor oversold. The STOCH value of 74.17 is Neutral, 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%
ECNR	54 Neutral	₪3.97B	-168.68	―	―	-9.53%	-125.66%
MSKE	52 Neutral	₪8.23B	―	―	―	―	―
DORL	47 Neutral	₪9.44B	-24.65	―	―	113.54%	-242.38%
AUGN	46 Neutral	₪194.29M	-12.72	―	―	12.31%	20.67%
NOFR	44 Neutral	₪6.20B	-79.37	―	―	5.79%	-13.05%