Ormat Techno (ORA) AI Stock Analysis

• Market Cap: $5.76B
• Dividend Yield: 0.51%
• Average Volume (3M): 529.74K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.55
• Revenue Growth: 2.23%
• EPS Growth: -0.82%
• Country: US
• Employees: 1,512
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.46
• Shares Outstanding: 60,723,470
• 10 Day Avg. Volume: 527,620
• 30 Day Avg. Volume: 529,742
• PEG Ratio: -17.29
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 4.65
• P/FCF Ratio: -53.34
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 8.58
• Enterprise Value/Gross Profit: 29.64
• Enterprise Value/Ebitda: 15.18
• 1Y Price Target: $95.80
• Price Target Upside: 0.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: $101.00 ▲(6.46% Upside)

Ormat Technologies' overall stock score is driven by strong financial performance and positive technical indicators. The earnings call provided a boost with its optimistic outlook, despite valuation concerns and cash flow challenges.

Positive Factors

Long-term Power Purchase Agreement

The 25-year PPA extension with SCPPA ensures stable, long-term revenue from the Heber 1 geothermal facility, reinforcing Ormat's market position in clean energy supply and providing financial predictability.

Revenue Growth in Energy Storage

Significant growth in the energy storage segment highlights Ormat's ability to capitalize on market trends, diversifying its revenue streams and enhancing its competitive edge in renewable energy solutions.

Successful Financing Initiatives

Securing $300 million in funding strengthens Ormat's financial position, supporting future development and expansion, which is crucial for sustaining long-term growth and operational capabilities.

Negative Factors

Challenges in Cash Flow Generation

The decline in free cash flow growth indicates potential liquidity issues, which could constrain Ormat's ability to invest in new projects and manage financial obligations, impacting long-term operational flexibility.

Electricity Segment Revenue Decline

Revenue decline in the electricity segment due to maintenance and curtailment suggests operational challenges, potentially affecting profitability and highlighting the need for improved efficiency and reliability.

Gross Margin Compression

The decline in gross margin reflects increased cost pressures, which could erode profitability if not addressed, necessitating strategic cost management to maintain competitive margins over the long term.

Ormat Techno Business Overview & Revenue Model

Company Description

Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, Honduras, and internationally. It operates through three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal, recovered energy-based electricity generation, and remote power units, such as fossil fuel powered turbo-generators and heavy duty direct-current generators; and provides services relating to the engineering, procurement, construction, operation, and maintenance of geothermal and recovered energy-based power plants. The Product segment serves contractors; developers, owners, and operators of geothermal power plants; and owners and operators of interstate natural gas pipelines, gas processing plants, and cement plants, as well as companies in other energy-intensive industrial processes. The Energy Storage segment offers energy storage and related services, as well as services relating to the engineering, procurement, construction, operation, and maintenance of energy storage units. Ormat Technologies, Inc. was founded in 1965 and is based in Reno, Nevada.

How the Company Makes Money

Ormat Technologies generates revenue through several key streams. The primary source of income comes from the sale and operation of geothermal power plants, where the company sells electricity generated from geothermal resources to utility companies and other large-scale energy consumers under long-term power purchase agreements (PPAs). Additionally, Ormat earns revenue by providing energy generation equipment and services to third-party customers, including the design and engineering of power plants. The company also benefits from recovered energy generation projects, where it captures and converts waste heat from industrial processes into electricity, further diversifying its revenue. Strategic partnerships with governments, utilities, and industry players enhance its market presence and facilitate access to new projects, contributing to its overall financial performance.

Ormat Techno Financial Statement Overview

Summary

Ormat Technologies shows strong revenue growth and profitability with a stable balance sheet, but faces challenges in cash flow generation, particularly in free cash flow, which could impact financial flexibility.

Income Statement

Ormat Techno's income statement shows a solid performance with consistent revenue growth, evidenced by a TTM revenue growth rate of 2.38%. The company maintains healthy profitability margins, with a TTM net profit margin of 14.49% and an EBIT margin of 25.83%. However, there is a slight decline in gross profit margin over the years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a strong equity position with a low TTM debt-to-equity ratio of 0.09, indicating low leverage and financial stability. The return on equity is moderate at 5.38%, suggesting efficient use of equity but room for improvement. The equity ratio is robust, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -114.27% TTM. The operating cash flow to net income ratio is 0.36, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is low at 0.10, suggesting limited free cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	906.30M	879.65M	829.42M	734.16M	663.08M	705.34M
Gross Profit	262.25M	272.62M	264.02M	268.82M	264.34M	276.27M
EBITDA	512.02M	521.52M	468.93M	387.40M	364.89M	397.80M
Net Income	131.31M	123.73M	124.40M	65.84M	62.09M	85.46M
Balance Sheet
Total Assets	6.02B	5.67B	5.21B	4.61B	4.43B	3.89B
Cash, Cash Equivalents and Short-Term Investments	206.06M	94.39M	195.81M	95.87M	282.62M	448.25M
Total Debt	2.73B	2.45B	2.12B	2.05B	1.93B	1.48B
Total Liabilities	3.39B	3.11B	2.76B	2.58B	2.42B	1.95B
Stockholders Equity	2.49B	2.43B	2.32B	1.87B	1.85B	1.81B
Cash Flow
Free Cash Flow	27.56M	-76.76M	-308.98M	-282.50M	-160.45M	-55.73M
Operating Cash Flow	265.01M	410.92M	309.40M	280.97M	258.82M	265.00M
Investing Cash Flow	-687.72M	-780.25M	-628.34M	-523.41M	-638.19M	-385.97M
Financing Cash Flow	279.65M	287.92M	379.96M	126.71M	187.90M	503.48M

Ormat Techno Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.87
• 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 ORA, the sentiment is Positive. The current price of 94.87 is above the 20-day moving average (MA) of 92.09, above the 50-day MA of 90.66, and above the 200-day MA of 76.94, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 74.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ORA.

Ormat Techno Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORA	70 Outperform	$5.76B	43.96	5.40%	0.51%	2.23%	-0.82%
EE	69 Neutral	$2.88B	23.88	11.08%	1.03%	9.86%	22.04%
RNW	67 Neutral	$2.79B	25.58	3.39%	―	33.19%	486.74%
CWEN	63 Neutral	$5.72B	44.30	4.11%	6.09%	-0.27%	-16.25%
CWEN.A	61 Neutral	$5.72B	42.22	4.11%	6.39%	-0.27%	-16.25%
BEPC	48 Neutral	$6.21B	-4.70	-1174.68%	4.27%	12.46%	-388.89%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Ormat Techno Corporate Events

Ormat Techno Stockholders Approve Key Proposals at Meeting

At the 2025 Annual Meeting, Ormat Techno‘s stockholders voted on three key proposals. The election of eight directors to the board was confirmed, with each director set to serve until the 2026 annual meeting. Additionally, the compensation for named executive officers was approved on an advisory basis, and the appointment of Kesselman & Kesselman as the independent registered public accounting firm for 2025 was ratified.