Opc Energy (OPCE) AI Stock Analysis

• Market Cap: ₪29.72B
• Dividend Yield: N/A
• Average Volume (3M): 410.42K
• Price to Earnings (P/E): 96.4
• Beta (1Y): 0.76
• 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: 301,760,130
• 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: 63 Neutral
• Price Target: 9,144.00 ▲(17.70% Upside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is driven primarily by solid financial performance indicators (rapid revenue growth and strong operating margins) but is held back by cash-flow weakness and modest profitability. Technicals are supportive due to a strong uptrend, though overbought signals add risk. Valuation is a major headwind given the very high P/E.

Positive Factors

Robust revenue growth

Sustained 56.6% TTM revenue growth signals durable commercial traction in renewable power sales and expanding project output. Over months this strengthens cash revenue visibility, supports scale economies, and improves bargaining power for new PPAs and project expansions.

High operating margins

Elevated EBITDA and EBIT margins indicate efficient plant operations and favorable operating leverage. These margins provide a structural buffer versus commodity and generation variability, supporting reinvestment capacity and long-term project economics across the company’s renewable portfolio.

Diversified, contract-backed revenues

Revenue mix including long-term PPAs, incentives and trading reduces merchant exposure and smooths cash flows. Contract tenure and policy support provide structural revenue predictability, aiding capital planning and reducing long-term volatility in project cash generation.

Negative Factors

Negative free cash flow trend

Negative FCF growth and a -0.18 FCF-to-net income ratio indicate cash generation lags accounting profits, suggesting heavy capex or working capital use. Persisting negative FCF can force external financing, slowing project rollout and increasing financial rigidity over the medium term.

Modest net profitability and low ROE

A low net margin and 3.7% ROE show limited conversion of operating performance into shareholder returns. Over months this constrains retained earnings accumulation and lowers the company’s ability to self-fund growth, making strategic expansion more reliant on external capital.

Declining gross profit margin

A falling gross margin signals pressure on core generation economics or higher direct costs. If structural, continued erosion would compress operating and net margins, undermining the company’s capacity to finance projects internally and sustain competitive returns long 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

Strong top-line momentum (TTM revenue up 56.6%) and solid operating efficiency (EBITDA margin 37.3%, EBIT margin 26.7%) are positives. However, profitability is still modest (net margin 6.4%, ROE 3.7%) and cash flow quality is a key risk, with negative free cash flow growth and a weak FCF-to-net income ratio (-0.18).

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: 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 7769 is below the 20-day moving average (MA) of 9215.80, below the 50-day MA of 8298.66, and above the 200-day MA of 5923.26, indicating a bullish trend. The MACD of 514.91 indicates Negative momentum. The RSI at 66.75 is Neutral, neither overbought nor oversold. The STOCH value of 77.34 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
NWMD	71 Outperform	₪23.77B	14.99	24.33%	3.95%	-15.01%	-16.12%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
OPCE	63 Neutral	₪29.72B	96.41	―	―	2.67%	132.35%
ENRG	59 Neutral	₪11.64B	40.64	―	2.25%	-1.14%	6.47%
DLEKG	58 Neutral	₪18.01B	5.15	4.49%	6.64%	17.71%	211.99%
MSKE	52 Neutral	₪7.78B	―	―	―	―	―
DORL	47 Neutral	₪12.27B	-30.84	―	―	113.54%	-242.38%