Ormat Technologies ORA
United StatesUtilities · Utilities - RenewableUSD
127.67 USD (+41.9%)
12 analysts
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Ormat Technologies is a US company that develops, builds, and operates geothermal and solar power plants, selling electricity to utilities and large consumers under long-term power purchase agreements.
Key points
from its scores- ✕Little competitive advantage2.2
- ✕Demanding valuation2.7
- ✕Poor share-price trend3.6
AI analysis
bottom line, main risk, context and newsHold only for long-term investors with high risk tolerance; the combination of high debt and demanding valuation does not invite new positions.
Ormat presents a leveraged balance sheet (Net Debt/EBITDA of 5.51) and negative free cash flow generation (conversion of -60.47%), which limits its appeal despite 10.60% revenue growth. The demanding valuation (P/E 44.10) and weak profitability (ROE 4.78%) suggest caution.
The main risk is the high leverage (Net Debt/EBITDA of 5.51) in a rising rate environment, which makes refinancing more expensive and pressures cash generation, which is already negative.
Context and risks
Ormat is a US-based producer of geothermal and solar energy with operations in emerging markets such as Kenya, Indonesia, and Turkey. Exposure to these jurisdictions introduces geopolitical and regulatory risk, although its asset base in the US and countries with long-term power purchase agreements partially mitigates the impact.
Is Ormat Technologies stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 82% above the Utilities median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 44.1 | 19.1 | +131% |
| EV / EBITDA | 16.3 | 12.2 | +34% |
| Price / book | 2.1 | 1.9 | +10% |
| Price / sales | 4.7 | 2.6 | +80% |
Sector: median of the 92 Utilities companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.7 out of 10 (median for Utilities: 4.8).
Average analyst target: 127.67 USD, +41.9% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 2.2 (sector 3.8), Growth 5.4 (sector 5.8).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Utilities medianValuation
- P/E
- 44.1
- Forward P/E
- 35.3
- EV / EBITDA
- 16.3
- Price / book
- 2.1
- Price / sales
- 4.7
- PEG
- 3.43
- Market cap
- 5.5B USD
- Enterprise value
- 8.6B USD
Profitability
- ROE
- 4.8%
- ROA
- 2.0%
- ROIC (approx.)
- 2.7%
- Gross margin
- 27.9%
- Operating margin
- 13.6%
- Net margin
- 10.7%
- Free cash flow
- −318.1M USD
- FCF yield
- −5.7%
- Cash conversion
- −60%
Solvency
- Total debt
- 3.4B USD
- Net debt
- 2.9B USD
- Cash
- 513.7M USD
- EBITDA
- 526.0M USD
- Net debt / EBITDA
- 5.51
- Debt / equity
- 124.34
- Current ratio
- 1.05
- Quick ratio
- 0.79
Growth
- Revenue growth
- +10.6%
- Earnings growth
- −6.5%
- EPS (TTM)
- 2.04 USD
- EPS (forward)
- 2.55 USD
Dividend
- Dividend yield
- 0.5%
- Payout
- 23.5%
Risk and market
- Beta
- 0.90
- Analyst consensus
- Buy (12)
- Target price
- 127.67 USD
- 52-week range
- 87.06 – 146.39
Recent news
All ORA news →Compare it with its sector
All 92 in Utilities →Frequently asked questions about Ormat Technologies
Is Ormat Technologies stock cheap or expensive?
On P/E and EV / EBITDA, it trades 82% above the Utilities median on average. Valuation score: 2.7 out of 10 (median for Utilities: 4.8). Average analyst target: 127.67 USD, +41.9% versus the price. This is not investment advice.
What score does Ormat Technologies get on MeridIAn Screener?
It scores 4.4 out of 10, rank 1,906 of 2,130 (better than 10% of the companies analysed). Its strongest category is Risk & Context (6.3) and its weakest, Quality / Moat (2.2). Analysis of 08/10/2026.
What is Ormat Technologies's P/E ratio?
Its P/E is 44.1: the share price equals 44.1 times earnings per share over the last 12 months. The Utilities median is 19.1. Based on the earnings analysts expect, the forward P/E is 35.3.
How much is Ormat Technologies worth on the stock market?
Its market capitalisation is 5.5B USD and its enterprise value, debt included, is 8.6B USD.
How much debt does Ormat Technologies have?
Its net debt (debt minus cash) is 2.9B USD. That is 5.51 times its EBITDA; the Utilities median is 5.33.
Does Ormat Technologies pay a dividend?
Yes: its dividend yield is 0.53% and it pays out 24% of its earnings.
How has Ormat Technologies stock performed over the last year?
It has fallen 13.1% over the last year, excluding dividends. Over the last 52 weeks it has traded between 87.06 and 146.39 USD. Past performance does not guarantee future results.
What do analysts think of Ormat Technologies?
12 analysts cover it; their average recommendation is “Buy” and their average target is 127.67 USD (+41.9% versus the price). It is an estimate, not market data.