Ormat Technologies, Inc.

ORA

Electric Services

Mkt Cap

$4.467B

PE

33.34

Debt

Cash

$201.5M

EV

FCF

-$246.7M

Market Cap

$4.467B

P/E Ratio

33.34

Debt

Cash

$201.5M

EV

FCF

-$246.7M

Charts data: {"Earnings":[{"time":"2014-12-30","value":54182000},{"time":"2015-12-30","value":119573000},{"time":"2016-12-30","value":93930000},{"time":"2017-12-30","value":155489000},{"time":"2018-12-30","value":97966000},{"time":"2019-12-30","value":88095000},{"time":"2020-12-30","value":85456000},{"time":"2021-12-30","value":62092000},{"time":"2022-12-30","value":65841000},{"time":"2023-12-30","value":124399000}],"Sales":[{"time":"2014-12-30","value":559524000},{"time":"2015-12-30","value":594644000},{"time":"2016-12-30","value":662591000},{"time":"2017-12-30","value":692812000},{"time":"2018-12-30","value":719267000},{"time":"2019-12-30","value":746044000},{"time":"2020-12-30","value":705342000},{"time":"2021-12-30","value":663084000},{"time":"2022-12-30","value":734159000},{"time":"2023-12-30","value":829424000}],"Net Margins":[{"time":"2014-12-30","value":0.09683588192821041},{"time":"2015-12-30","value":0.20108333725724972},{"time":"2016-12-30","value":0.14176165990784662},{"time":"2017-12-30","value":0.22443173617085155},{"time":"2018-12-30","value":0.13620255065226125},{"time":"2019-12-30","value":0.1180828476604597},{"time":"2020-12-30","value":0.12115541113388965},{"time":"2021-12-30","value":0.09364122795905194},{"time":"2022-12-30","value":0.08968220780512123},{"time":"2023-12-30","value":0.1499823974227898}],"Assets":[{"time":"2014-12-30","value":2121556000},{"time":"2015-12-30","value":2293044000},{"time":"2016-12-30","value":2461569000},{"time":"2017-12-30","value":2586662000},{"time":"2018-12-30","value":3121350000},{"time":"2019-12-30","value":3250494000},{"time":"2020-12-30","value":3888987000},{"time":"2021-12-30","value":4425678000},{"time":"2022-12-30","value":4611579000},{"time":"2023-12-30","value":5208279000}],"Stockholders Equity":[{"time":"2014-12-30","value":786746000},{"time":"2015-12-30","value":1083874000},{"time":"2016-12-30","value":1170007000},{"time":"2017-12-30","value":1320459000},{"time":"2018-12-30","value":1445096000},{"time":"2019-12-30","value":1515410000},{"time":"2020-12-30","value":1941437000},{"time":"2021-12-30","value":1998461000},{"time":"2022-12-30","value":2020975000},{"time":"2023-12-30","value":2440987000}],"ROE":[{"time":"2014-12-30","value":0.06886847851784439},{"time":"2015-12-30","value":0.1103200187475666},{"time":"2016-12-30","value":0.08028157096496004},{"time":"2017-12-30","value":0.11775375077908515},{"time":"2018-12-30","value":0.0677920359616247},{"time":"2019-12-30","value":0.05813278254729743},{"time":"2020-12-30","value":0.04401688027991637},{"time":"2021-12-30","value":0.031069908294432565},{"time":"2022-12-30","value":0.03257882952535286},{"time":"2023-12-30","value":0.05096258193919099}],"ROA":[{"time":"2014-12-30","value":0.08036082950438263},{"time":"2015-12-30","value":0.08119163871255851},{"time":"2016-12-30","value":0.08469273053081185},{"time":"2017-12-30","value":0.08693520838826256},{"time":"2018-12-30","value":0.0666714722796226},{"time":"2019-12-30","value":0.06697043587836188},{"time":"2020-12-30","value":0.06342782837792978},{"time":"2021-12-30","value":0.042074683246273226},{"time":"2022-12-30","value":0.039759049991337024},{"time":"2023-12-30","value":0.045689948637544185}]}

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 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.

Sector

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Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -3.9%

Earnings Stability 10%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	20%	14%	22%	14%	12%	12%	9.4%	9%	15%	15%
ROA	8.1%	8.5%	8.7%	6.7%	6.7%	6.3%	4.2%	4%	4.6%	4.4%
ROE	11%	8%	12%	6.8%	5.8%	4.4%	3.1%	3.3%	5.1%	5.4%

What is the average Net Margin?

The average Net Margin over the past 5 years is +11.81%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.13%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +5.41%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.59%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +4.74%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.5%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	24.50	130.05	-67.98	-11.43	-26.85	-26.45	-12.00	-7.27	-6.44	-
Debt Equity	0.85	0.82	0.70	0.89	0.77	0.76	0.96	1.02	0.82	-
MIN
Graham Stability	-	-	100%	80%	76%	75%	69%	84%	100%	69%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 2.80.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.69.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	3.3%	2.9%	5.6%	13%	-0.095%
Net Income	4.1%	4.9%	13%	89%	-3.3%
Stockholders Equity	11%	11%	7.9%	21%	-1.5%
FCF	-	-	-	-	-49%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.89%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.1%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +4.89%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -3.27%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.05%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -1.49%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +22.35%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -49.43%.