Ormat Techno (ORA) AI Stock Analysis

• Market Cap: $5.18B
• Dividend Yield: 0.56%
• Average Volume (3M): 464.08K
• Price to Earnings (P/E): 41.8
• Beta (1Y): 0.62
• Revenue Growth: 1.95%
• EPS Growth: -6.57%
• Country: US
• Employees: 1,512
• Sector: Utilities
• Sector Strength: 75
• Industry: Renewable Utilities
• EPS (TTM): 0.66
• Shares Outstanding: 60,662,624
• 10 Day Avg. Volume: 647,204
• 30 Day Avg. Volume: 464,076
• PEG Ratio: 27.75
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -26.43
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 2.14
• Enterprise Value/Gross Profit: 28.44
• Enterprise Value/Ebitda: 3.96
• 1Y Price Target: $83.00
• Price Target Upside: -2.81% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 65 Neutral
• Price Target: $91.00 ▲(6.56%Upside)

Ormat Technologies' stock score reflects its strong financial performance and bullish technical indicators, though valuation concerns and mixed earnings call sentiment temper enthusiasm. The company's robust growth in strategic segments is promising, but high market valuation and operational challenges require cautious optimism.

Positive Factors

Growth Initiatives

The Blue Mountain acquisition and Ijen project support growth targets, with plans to expand geothermal and solar capacities.

Market Position

ORA is the global leader in geothermal power generation and operates a global portfolio of energy assets over 1.5 GW in size.

Negative Factors

Revenue Challenges

Curtailments in California and Nevada led to a decline in electricity revenue and margin compression.

Supply Chain Risks

The storage segment carries the most exposure to tariffs and global supply chain risks, given heavy reliance on battery imports from China.

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 Techno makes money primarily through the sale of electricity generated from its geothermal power plants. The company operates under long-term power purchase agreements (PPAs) with utilities and other energy customers, ensuring a stable and predictable revenue stream. Additionally, Ormat generates revenue from selling equipment and services related to geothermal and recovered energy projects, including engineering, procurement, and construction (EPC) services. Strategic partnerships and joint ventures also contribute to the company's financial performance by expanding its market reach and technological capabilities in the renewable energy sector.

Ormat Techno Financial Statement Overview

Summary

Ormat Techno shows strong revenue growth and healthy profit margins, though high capital expenditures impact free cash flow. The balance sheet indicates a stable but leveraged position with a need for continuous monitoring of liabilities.

Income Statement

Ormat Techno shows strong revenue growth with a consistent climb from $663M in 2021 to $885M in TTM 2025. Gross profit margins have been slightly volatile but remain healthy at around 30%. The TTM EBIT margin of 14.8% shows robust operational efficiency, though slightly below previous years. Net profit margin remains stable, indicating consistent profitability. The EBITDA margin has improved significantly, reflecting good cost management.

Balance Sheet

The debt-to-equity ratio is moderate, showing a steady leverage position with improvements in equity financing over debt. ROE has remained stable, reflecting efficient use of equity capital. The equity ratio is strong, indicating a solid capital base, although the increase in total liabilities suggests rising financial obligations that need monitoring.

Cash Flow

Operating cash flow remains strong, consistently covering net income, but free cash flow has been negative, indicating high capital expenditures. Despite a decrease in free cash flow over recent periods, the company maintains a positive operating cash flow to net income ratio, signifying sound operational cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	885.25M	879.65M	829.42M	734.16M	663.08M	705.34M
Gross Profit	266.74M	272.62M	264.02M	268.82M	264.34M	276.27M
EBITDA	505.29M	521.52M	468.93M	387.40M	364.89M	397.80M
Net Income	125.51M	123.73M	124.40M	65.84M	62.09M	85.46M
Balance Sheet
Total Assets	5.84B	5.67B	5.21B	4.61B	4.43B	3.89B
Cash, Cash Equivalents and Short-Term Investments	112.70M	94.39M	195.81M	95.87M	282.62M	448.25M
Total Debt	2.59B	2.45B	2.12B	2.05B	1.93B	1.48B
Total Liabilities	3.24B	3.11B	2.76B	2.58B	2.42B	1.95B
Stockholders Equity	2.46B	2.43B	2.32B	1.87B	1.85B	1.81B
Cash Flow
Free Cash Flow	-193.17M	-76.76M	-308.98M	-282.50M	-160.45M	-55.73M
Operating Cash Flow	383.72M	410.92M	309.40M	280.97M	258.82M	265.00M
Investing Cash Flow	-621.31M	-780.25M	-628.34M	-523.41M	-638.19M	-385.97M
Financing Cash Flow	153.66M	287.92M	379.96M	126.71M	187.90M	503.48M

Ormat Techno Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.40
• 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 ORA, the sentiment is Positive. The current price of 85.4 is above the 20-day moving average (MA) of 79.58, above the 50-day MA of 75.40, and above the 200-day MA of 73.19, indicating a bullish trend. The MACD of 3.23 indicates Negative momentum. The RSI at 72.71 is Negative, neither overbought nor oversold. The STOCH value of 83.04 is Negative, 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
CWEN	77 Outperform	$6.34B	40.03	4.70%	5.47%	-1.34%	21.62%
CWEN.A	75 Outperform	$6.34B	37.78	4.70%	5.80%	-1.34%	21.62%
RNW	65 Neutral	$2.44B	45.16	4.18%	―	-1.77%	-41.65%
ORA	65 Neutral	$5.18B	41.80	5.21%	0.56%	1.95%	-6.57%
Sector *	63 Neutral	HK$30.69B	8.17	5.37%	12.99%	-3.22%	3.17%
BEPC	60 Neutral	$5.82B	32.67	-4.65%	4.57%	1.01%	-110.78%
SMR	42 Neutral	$10.99B	―	-32.34%	―	62.41%	-85.81%

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.