Ormat Techno (ORA) AI Stock Analysis

• Market Cap: $6.91B
• Dividend Yield: 0.45%
• Average Volume (3M): 616.75K
• Price to Earnings (P/E): 52.0
• Beta (1Y): 0.44
• Revenue Growth: 6.07%
• EPS Growth: 12.07%
• Country: US
• Employees: 1,512
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.41
• Shares Outstanding: 60,723,470
• 10 Day Avg. Volume: 604,474
• 30 Day Avg. Volume: 616,746
• 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: 1.24
• Enterprise Value/Revenue: 9.09
• Enterprise Value/Gross Profit: 32.11
• Enterprise Value/Ebitda: 16.03
• 1Y Price Target: $115.78
• Price Target Upside: 2.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.19
• Revenue Forecast (FY): $959.43M

• Rating: 71 Outperform
• Price Target: $126.00 ▲(11.03% Upside)

Ormat Technologies' overall score is driven by strong technical indicators and positive earnings call outcomes, indicating robust growth prospects. However, high valuation and cash flow challenges present potential risks.

Positive Factors

Revenue Growth

The significant revenue growth reflects Ormat's successful expansion and market penetration, indicating a strong demand for its renewable energy solutions.

Strategic Partnerships

These partnerships enhance Ormat's technological capabilities and market reach, potentially accelerating the development and commercialization of innovative geothermal solutions.

Energy Storage Segment Growth

The rapid growth in the Energy Storage segment highlights Ormat's ability to diversify its offerings and capitalize on the growing demand for energy storage solutions.

Negative Factors

Cash Flow Challenges

The negative cash flow growth could hinder Ormat's ability to fund operations and growth initiatives, potentially requiring external financing.

Electricity Segment Challenges

Decreased margins in the Electricity segment due to operational disruptions could impact profitability and require strategic adjustments.

Impact of Lower Energy Prices

Lower energy prices can reduce revenue and profitability, affecting Ormat's financial performance and necessitating cost management strategies.

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. However, significant challenges in cash flow management could impact its ability to fund operations and growth initiatives.

Income Statement

Ormat Techno shows a solid revenue growth trajectory, with a TTM revenue growth rate of 4.19%. The company maintains healthy profitability, evidenced by a TTM net profit margin of 14.12% and an EBIT margin of 26.77%. However, there is a slight decline in gross profit margin over the years, which could indicate rising costs or competitive pressures.

Balance Sheet

The company's balance sheet is stable, with a low TTM debt-to-equity ratio of 0.067, indicating minimal leverage risk. Return on equity is modest at 5.38%, suggesting efficient use of equity capital. The equity ratio is not explicitly calculated, but the low leverage and stable equity base suggest a strong financial position.

Cash Flow

Ormat Techno faces challenges in cash flow management, with a significant negative free cash flow growth rate of -1546.40% in the TTM. The operating cash flow to net income ratio is 0.59, indicating moderate cash generation relative to net income. The negative free cash flow to net income ratio highlights potential issues in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	944.25M	879.65M	829.42M	734.16M	663.08M	705.34M
Gross Profit	267.42M	272.62M	264.02M	268.82M	264.34M	276.27M
EBITDA	535.71M	512.27M	462.76M	382.14M	369.18M	397.80M
Net Income	133.37M	123.73M	124.40M	65.84M	62.09M	85.46M
Balance Sheet
Total Assets	6.09B	5.67B	5.21B	4.61B	4.43B	3.89B
Cash, Cash Equivalents and Short-Term Investments	79.56M	94.39M	195.81M	95.87M	282.62M	448.25M
Total Debt	2.76B	2.45B	2.12B	2.05B	1.93B	1.48B
Total Liabilities	3.44B	3.11B	2.76B	2.58B	2.42B	1.94B
Stockholders Equity	2.51B	2.43B	2.32B	1.87B	1.85B	1.81B
Cash Flow
Free Cash Flow	-111.64M	-76.76M	-308.98M	-282.50M	-160.45M	-55.73M
Operating Cash Flow	343.53M	410.92M	309.40M	280.97M	258.82M	265.00M
Investing Cash Flow	-567.57M	-780.25M	-628.34M	-523.41M	-638.19M	-385.97M
Financing Cash Flow	252.82M	287.92M	379.96M	126.27M	186.38M	503.48M

Ormat Techno Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 113.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 113.48 is above the 20-day moving average (MA) of 108.23, above the 50-day MA of 100.52, and above the 200-day MA of 82.48, indicating a bullish trend. The MACD of 3.09 indicates Negative momentum. The RSI at 68.01 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 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
EE	74 Outperform	$3.21B	24.85	6.96%	1.00%	45.09%	50.54%
ORA	71 Outperform	$6.91B	52.02	5.45%	0.45%	6.07%	12.07%
CWEN	70 Neutral	$6.98B	14.91	13.20%	5.35%	2.54%	124.89%
CWEN.A	70 Neutral	$6.94B	13.92	13.20%	5.69%	2.54%	124.89%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$2.72B	24.78	8.27%	―	33.19%	486.74%
BEPC	56 Neutral	$7.71B	―	-38.17%	3.32%	5.93%	-39.88%

Ormat Techno Corporate Events

Ormat Technologies Reports Strong Q3 Earnings Amid Challenges

Ormat Technologies’ recent earnings call showcased a robust financial performance, marked by significant strategic achievements and notable growth in its Product and Energy Storage segments. Despite these positive developments, the company acknowledged challenges within its Electricity segment and external factors that have impacted operations, creating a balanced sentiment overall.

Ormat Technologies Reports Strong Q3 2025 Results

Ormat Technologies, Inc. is a prominent player in the renewable energy sector, specializing in geothermal and recovered energy generation, with a strong focus on expanding its energy storage market presence. The company is known for its vertically integrated operations, which include the design, manufacturing, and sale of geothermal and REG power plants globally.

Ormat Technologies’ Earnings Call Highlights Growth and Challenges

Ormat Technologies’ recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth in key segments such as energy storage and products. The company also highlighted successful financing initiatives and favorable policy changes. However, challenges were acknowledged in the electricity segment, including revenue declines and margin compression, partly due to energy curtailment impacts.

Ormat Technologies Reports Strong Q2 2025 Results

Ormat Technologies, Inc., a prominent player in the renewable energy sector, specializes in geothermal and recovered energy generation, with a focus on expanding its footprint in the energy storage market. The company recently reported its financial results for the second quarter of 2025, showcasing a 26.1% increase in net income and a 6.7% rise in adjusted EBITDA, driven by strong performance in its Product and Energy Storage segments. Despite a slight decline in electricity revenues due to planned maintenance and curtailments, Ormat’s total revenues grew by 9.9% compared to the previous year. The company also completed the acquisition of the Blue Mountain geothermal power plant and secured $300 million in funding to support future development projects. Looking ahead, Ormat remains optimistic about its growth prospects, supported by favorable regulatory developments and increasing demand for renewable energy solutions.