Ormat Techno (ORA) AI Stock Analysis

• Market Cap: $4.50B
• Dividend Yield: 0.65%
• Average Volume (3M): 379.89K
• Price to Earnings (P/E): 36.4
• Beta (1Y): 0.62
• Revenue Growth: 1.95%
• EPS Growth: -6.57%
• Country: US
• Employees: 1,512
• Sector: Utilities
• Sector Strength: 80
• Industry: Renewable Utilities
• EPS (TTM): 0.66
• Shares Outstanding: 60,662,624
• 10 Day Avg. Volume: 318,159
• 30 Day Avg. Volume: 379,893
• PEG Ratio: 9.01
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -59.09
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 25.28
• Enterprise Value/Ebitda: 3.71
• 1Y Price Target: $82.17
• Price Target Upside: 9.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $79.00 ▲(5.17%Upside)

Ormat Technologies' overall score is primarily driven by its strong financial performance, particularly in revenue growth and profitability. Technical indicators suggest moderate bullish momentum. Valuation concerns and mixed earnings call sentiment due to segment-specific challenges slightly offset the positives.

Positive Factors

Growth Initiatives

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

Power Pricing

Favorable power pricing is expected to significantly boost Ormat Technologies' performance.

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 demonstrates strong revenue growth and a solid equity position, indicating financial stability. However, negative EBIT and zero cash flow activities in 2024 highlight potential operational risks that could affect long-term sustainability. These challenges need addressing to leverage the company's strong equity base effectively.

Income Statement

Ormat Techno shows a positive revenue growth trajectory, with a notable increase from $829 million in 2023 to $879 million in 2024, marking a growth rate of 6.05%. However, the company faced a decline in profitability, evidenced by a negative EBIT and EBITDA of -$9.38 million in 2024, indicating potential operational challenges. Despite this, the net profit margin remains positive at 14.06%, supported by net income of $123.73 million, which underscores some stability in the bottom line.

Balance Sheet

The balance sheet of Ormat Techno reflects solid equity growth, with stockholders' equity increasing significantly to $4.57 billion in 2024. The debt-to-equity ratio improved to 0.13, indicating reduced leverage and a stronger financial position. Return on equity is commendable, aided by the substantial net income, though the equity ratio of 80.72% suggests prudent financial management with a focus on equity financing.

Cash Flow

Ormat Techno's cash flow statement reveals areas of concern, primarily due to a lack of reported free cash flow growth and zero operating cash flow, raising questions about cash generation capabilities. The absence of capital expenditure and other cash flow activities in 2024 indicates potential constraints or strategic shifts that need further exploration.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
879.65M	829.42M	734.16M	663.08M	705.34M
	Gross Profit
272.62M	264.02M	268.82M	264.34M	276.27M
	EBIT
172.47M	166.59M	24.08M	17.71M	65.51M
	EBITDA
521.52M	468.93M	387.40M	364.89M	397.80M
	Net Income Common Stockholders
123.73M	124.40M	65.84M	62.09M	85.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
94.39M	195.81M	95.87M	282.62M	448.25M
	Total Assets
5.67B	5.21B	4.61B	4.43B	3.89B
	Total Debt
2.45B	2.12B	2.05B	1.93B	1.48B
	Net Debt
2.36B	1.83B	1.96B	1.70B	1.04B
	Total Liabilities
3.11B	2.76B	2.58B	2.42B	1.95B
	Stockholders Equity
2.43B	2.32B	1.87B	1.85B	1.81B
Cash Flow		Free Cash Flow
-76.76M	-308.98M	-282.50M	-160.45M	-55.73M
	Operating Cash Flow
410.92M	309.40M	280.97M	258.82M	265.00M
	Investing Cash Flow
-780.25M	-628.34M	-523.41M	-638.19M	-385.97M
	Financing Cash Flow
287.92M	379.96M	126.71M	187.90M	503.48M

Ormat Techno Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 75.12
• 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 75.12 is above the 20-day moving average (MA) of 73.70, above the 50-day MA of 71.98, and above the 200-day MA of 72.59, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 58.44 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 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	72 Outperform	$5.98B	37.83	4.70%	5.63%	-1.34%	21.62%
ORA	69 Neutral	$4.50B	36.38	5.21%	0.65%	1.95%	-6.57%
CWEN.A	68 Neutral	$6.16B	35.97	4.70%	5.95%	-1.34%	21.62%
RNW	65 Neutral	$2.46B	97.40	2.00%	―	-1.77%	-41.65%
Sector *	64 Neutral	$8.53B	10.25	4.70%	4.38%	4.14%	-13.04%
BEPC	56 Neutral	$5.48B	32.67	-4.65%	4.94%	1.01%	-110.78%
SMR	42 Neutral	$9.04B	―	-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.

Ormat Techno Board Member Mike Nikkel Steps Down

On March 11, 2025, Mike Nikkel, a board member of Ormat Technologies, Inc., announced he would not seek reelection at the 2025 annual stockholders’ meeting. This decision follows the termination of a governance agreement with ORIX Corporation, which previously had the right to nominate a director. Nikkel’s departure is not due to any disputes with the company, and he will step down in accordance with ORIX guidelines.