Opc Energy (OPCE) AI Stock Analysis

• Market Cap: 21.90B
• Dividend Yield: N/A
• Average Volume (3M): 410.42K
• Price to Earnings (P/E): 70.8
• Beta (1Y): 0.86
• Revenue Growth: 2.67%
• EPS Growth: 132.35%
• Country: IL
• Employees: 149
• Sector: Energy
• Sector Strength: 52
• Industry: Independent Power Producers
• EPS (TTM): 64.00
• Shares Outstanding: 301,739,100
• 10 Day Avg. Volume: 456,766
• 30 Day Avg. Volume: 410,418
• PEG Ratio: -2.18
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.59
• P/FCF Ratio: -14.53
• 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: 64 Neutral
• Price Target: 6,896.00 ▼(-4.97% Downside)

Opc Energy's overall stock score is driven by strong technical indicators and solid financial performance, despite challenges in profitability and cash flow. The high P/E ratio suggests overvaluation, which tempers the score. The absence of earnings call insights and corporate events means these factors did not influence the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and successful execution of business strategies, enhancing long-term sustainability.

Operational Efficiency

High margins reflect efficient operations and cost management, supporting profitability and competitive positioning in the renewable energy sector.

Stable Balance Sheet

A stable balance sheet with manageable leverage supports financial stability and provides flexibility for future investments and growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which can impact the company's ability to fund operations and invest in growth.

Profitability Concerns

A modest net profit margin highlights challenges in translating revenue growth into bottom-line profitability, affecting long-term financial health.

Low Return on Equity

Low return on equity suggests inefficiencies in generating profits from shareholder investments, potentially impacting investor confidence and capital attraction.

Opc Energy Business Overview & Revenue Model

Company Description

OPC Energy Ltd. owns, develops, and operates power generation facilities in Israeli. It operates a conventional combined cycle power plant with an installed capacity of 466 megawatts (MW); and a natural gas-fired open-cycle power station with a capacity of approximately 396 MW, as well as has a co-generation power plant with an installed capacity of 144 MW. The company was formerly known as IC Power Israel Ltd. and changed its name to OPC Energy Ltd. in July 2017. The company was incorporated in 2010 and is based in Tel Aviv-Yafo, Israel. OPC Energy Ltd. operates as a subsidiary of Kenon Holdings Ltd.

How the Company Makes Money

Opc Energy generates revenue through multiple streams including the sale of electricity produced from its renewable energy projects. The company enters into Power Purchase Agreements (PPAs) with utility companies and large corporations, ensuring a steady income from long-term contracts for the electricity generated. Additionally, Opc Energy may benefit from government incentives and subsidies aimed at promoting renewable energy, which can enhance profit margins. The company could also engage in energy trading and management services, further diversifying its revenue sources. Strategic partnerships with other firms in the energy sector can enhance operational efficiency and open new markets, contributing positively to the company's overall financial health.

Opc Energy Financial Statement Overview

Summary

Opc Energy shows strong revenue growth and operational efficiency, but profitability is modest with low net profit margin. Cash flow is robust in operations but negative in free cash flow, indicating liquidity concerns.

Income Statement

Opc Energy has shown consistent revenue growth, with a notable 1% increase in TTM. The company maintains a healthy EBIT margin of 26.38% and EBITDA margin of 37.09% in TTM, indicating strong operational efficiency. However, the gross profit margin has decreased from previous periods, and net profit margin remains relatively low at 5.68% in TTM, suggesting room for improvement in cost management and profitability.

Balance Sheet

The debt-to-equity ratio has improved to 0.96 in TTM, reflecting better leverage management. However, the return on equity is modest at 3.47%, indicating limited profitability relative to shareholder equity. The equity ratio stands at 41.47%, showing a stable capital structure but highlighting the need for enhanced asset utilization.

Cash Flow

Operating cash flow remains robust, covering 90.52% of net income in TTM. However, free cash flow is negative, and the free cash flow to net income ratio is -0.43, indicating challenges in generating surplus cash after capital expenditures. The negative free cash flow growth rate of -57.05% in TTM suggests potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	2.78B	2.55B	1.93B	1.57B	1.33B
Gross Profit	512.00M	531.00M	725.00M	332.00M	317.00M	243.35M
EBITDA	1.18B	1.01B	832.00M	688.00M	291.00M	313.00M
Net Income	282.00M	111.00M	144.00M	167.00M	-304.00M	-41.85M
Balance Sheet
Total Assets	13.63B	12.07B	12.62B	9.53B	7.74B	5.58B
Cash, Cash Equivalents and Short-Term Investments	2.30B	962.00M	1.02B	974.00M	757.00M	1.81B
Total Debt	4.53B	4.67B	5.77B	4.22B	3.87B	3.01B
Total Liabilities	5.76B	5.65B	7.38B	5.17B	4.89B	3.86B
Stockholders Equity	6.27B	4.75B	3.85B	3.51B	2.27B	1.67B
Cash Flow
Free Cash Flow	384.00M	-495.00M	-728.00M	-697.00M	-366.00M	105.49M
Operating Cash Flow	676.00M	765.00M	495.00M	207.00M	385.00M	361.91M
Investing Cash Flow	-1.28B	-1.71B	-2.17B	-1.10B	-872.00M	-2.18B
Financing Cash Flow	1.87B	891.00M	1.82B	986.00M	997.00M	1.64B

Opc Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7257.00
• 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:OPCE, the sentiment is Positive. The current price of 7257 is above the 20-day moving average (MA) of 6811.60, above the 50-day MA of 6388.66, and above the 200-day MA of 4795.31, indicating a bullish trend. The MACD of 243.23 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 84.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:OPCE.

Opc Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWMD	71 Outperform	$21.22B	13.39	24.33%	3.95%	-15.01%	-16.12%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OPCE	64 Neutral	21.90B	70.76	―	―	2.67%	132.35%
MSKE	61 Neutral	5.49B	―	―	―	―	―
ENRG	59 Neutral	8.99B	32.89	―	2.25%	-1.14%	6.47%
DLEKG	58 Neutral	15.55B	4.45	4.49%	6.64%	17.71%	211.99%
DORL	54 Neutral	6.61B	-35.95	―	―	113.54%	-242.38%