Opc Energy (OPCE) AI Stock Analysis

• Market Cap: 15.75B
• Dividend Yield: N/A
• Average Volume (3M): 310.54K
• Price to Earnings (P/E): 74.3
• Beta (1Y): 0.92
• Revenue Growth: 3.14%
• EPS Growth: 50.08%
• Country: IL
• Employees: 149
• Sector: Energy
• Sector Strength: 54
• Industry: Independent Power Producers
• EPS (TTM): 1.80
• Shares Outstanding: 296,167,050
• 10 Day Avg. Volume: 240,011
• 30 Day Avg. Volume: 310,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 5,765.00
• Price Target Upside: 8.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 5,765.00 ▲(8.43% Upside)

Opc Energy's strong technical indicators and revenue growth are offset by high valuation concerns and negative free cash flow. The stock shows positive momentum, but potential liquidity issues and high P/E ratio suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability and expansion.

Operational Efficiency

Strong operational efficiency reflects effective cost management and resource utilization, enhancing profitability and competitive advantage.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities, supporting long-term stability.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates challenges in generating surplus cash after capital expenditures, potentially limiting investment capacity and liquidity.

Profitability Concerns

Low net profit margins suggest limited profitability, which may hinder the company's ability to reinvest in growth and improve shareholder returns.

Liquidity Issues

Potential liquidity issues could impact the company's ability to meet short-term obligations and fund future projects, posing a risk to financial health.

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, primarily by selling electricity produced from its renewable energy projects, which include solar and wind farms. The company benefits from long-term power purchase agreements (PPAs) with utility companies and large-scale consumers, ensuring a steady income flow. Additionally, Opc Energy may earn revenue through government incentives and subsidies aimed at promoting renewable energy usage. Key partnerships with technology providers and local governments can enhance its operational efficiency and market access, further contributing to its earnings.

Opc Energy Financial Statement Overview

Summary

Opc Energy shows strong revenue growth and operational efficiency. However, profitability is modest, and there are concerns about negative free cash flow, indicating potential liquidity issues.

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	2.83B	2.78B	2.55B	1.93B	1.57B	1.33B
Gross Profit	486.00M	531.00M	725.00M	332.00M	317.00M	243.35M
EBITDA	1.06B	1.01B	832.00M	688.00M	291.00M	313.00M
Net Income	180.00M	111.00M	144.00M	167.00M	-304.00M	-41.85M
Balance Sheet
Total Assets	12.72B	12.07B	12.62B	9.53B	7.74B	5.58B
Cash, Cash Equivalents and Short-Term Investments	1.59B	962.00M	1.02B	974.00M	757.00M	1.81B
Total Debt	4.76B	4.67B	5.77B	4.22B	3.87B	3.01B
Total Liabilities	5.85B	5.65B	7.38B	5.17B	4.89B	3.86B
Stockholders Equity	5.28B	4.75B	3.85B	3.51B	2.27B	1.67B
Cash Flow
Free Cash Flow	-137.00M	-495.00M	-728.00M	-697.00M	-366.00M	105.49M
Operating Cash Flow	756.00M	765.00M	495.00M	207.00M	385.00M	361.91M
Investing Cash Flow	-1.70B	-1.71B	-2.17B	-1.10B	-872.00M	-2.18B
Financing Cash Flow	1.90B	891.00M	1.82B	986.00M	997.00M	1.64B

Opc Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5317.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5317 is above the 20-day moving average (MA) of 5256.85, above the 50-day MA of 5036.46, and above the 200-day MA of 3795.82, indicating a bullish trend. The MACD of 107.09 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 78.61 is Neutral, 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
OPCE	66 Neutral	15.75B	74.30		―	3.14%	50.08%
Sector *	65 Neutral	$15.18B	7.59	4.09%	5.21%	3.87%	-62.32%
DKDRF	―	$5.67B	12.39	26.44%	4.28%	―	―
DLKGF	―	$4.24B	17.29	10.26%	6.90%	―	―
ENRG	61 Neutral	7.67B	35.44		2.88%	12.94%	-3.23%
MSKE	60 Neutral	3.44B	71.44		―	―	―
DORL	45 Neutral	2.95B	―		―	113.54%	-242.38%