Opc Energy (OPCE) AI Stock Analysis

• Market Cap: ₪24.99B
• Dividend Yield: N/A
• Average Volume (3M): 410.42K
• Price to Earnings (P/E): 82.7
• Beta (1Y): 0.77
• Revenue Growth: 2.67%
• EPS Growth: 132.35%
• Country: US
• Employees: 149
• Sector: Energy
• Sector Strength: 52
• Industry: Independent Power Producers
• EPS (TTM): 64.00
• Shares Outstanding: 301,753,400
• 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: 8,861.00 ▲(14.06% Upside)

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 Trajectory

Sustained high revenue growth (56.6% TTM) indicates accelerating project output and successful contract wins or asset additions. Over 2–6 months this supports scale economies, stronger bargaining power in PPAs, and a firmer base for reinvesting in new renewable projects that drive long-term cash generation.

Robust Operating Margins

Elevated EBIT and EBITDA margins reflect efficient operations and cost control across generation assets. These margins provide durable financial headroom to absorb commodity or input cost swings, fund maintenance CapEx, and sustain returns even as the company scales its wind and solar portfolio over the medium term.

Stable Balance Sheet

A moderate debt-to-equity ratio near 0.9 and solid equity ratio signal prudent capital structure and reduced leverage versus prior periods. This stability preserves financing optionality for new projects, lowers refinancing risk, and supports resilience to interest-rate cycles over the next several months.

Negative Factors

Free Cash Flow Weakness

Negative free cash flow growth and a FCF-to-net-income ratio of -0.18 point to cash conversion issues despite accounting profits. Persisting FCF deficits can constrain reinvestment, force external financing for project development, and raise liquidity risk if not corrected within upcoming quarters.

Modest Net Profitability

A modest net margin of 6.4% alongside a declining gross margin suggests margin pressure from either rising operating costs or lower realized prices. Over months this can limit retained earnings, slow deleveraging, and reduce the cushion available to fund growth without diluting equity or increasing leverage.

Low Return on Equity

ROE of 3.7% indicates limited returns on shareholder capital despite growth. If ROE remains low, investors may see weak capital efficiency; the company may need higher-margin projects or better asset utilization to improve shareholder returns over the medium term.

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, with healthy EBIT and EBITDA margins. However, challenges in profitability and cash flow management, along with a modest net profit margin, indicate areas needing improvement. The balance sheet is stable with reduced leverage, but cash flow constraints pose potential risks.

Income Statement

Opc Energy has shown a strong revenue growth trajectory, with a notable 56.6% increase in TTM compared to the previous year. The company maintains healthy EBIT and EBITDA margins at 26.7% and 37.3% respectively, indicating efficient operations. However, the gross profit margin has declined over time, and the net profit margin remains modest at 6.4%, suggesting room for improvement in cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.90, which is a positive trend compared to previous years. Return on equity is improving but remains low at 3.7%, indicating limited profitability relative to shareholder equity. The equity ratio is healthy, suggesting a solid asset base supported by equity.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate and a free cash flow to net income ratio of -0.18, indicating cash flow issues. The operating cash flow to net income ratio is strong at 0.83, showing good cash generation from operations, but the negative free cash flow highlights 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: 7769.00
• 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 7769 is above the 20-day moving average (MA) of 7722.80, above the 50-day MA of 7129.32, and above the 200-day MA of 5253.42, indicating a bullish trend. The MACD of 286.93 indicates Negative momentum. The RSI at 74.88 is Negative, neither overbought nor oversold. The STOCH value of 91.89 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	₪22.51B	14.20	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	₪24.99B	82.66	―	―	2.67%	132.35%
ENRG	59 Neutral	₪11.05B	38.62	―	2.25%	-1.14%	6.47%
DLEKG	58 Neutral	₪15.28B	4.37	4.49%	6.64%	17.71%	211.99%
MSKE	52 Neutral	₪7.89B	―	―	―	―	―
DORL	51 Neutral	₪8.46B	-22.63	―	―	113.54%	-242.38%