Ormat Technologies Stock Drop Looks Sharp, But How Deep Can It Go?
Ormat Technologies (ORA) stock is down 15.6% in 21 trading days. The recent slide reflects renewed concerns around margin pressures, asset impairments, and valuation concerns, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Ormat Technologies stands today.
- Size: Ormat Technologies is a $6.5 Bil company with $944 Mil in revenue currently trading at $106.47.
- Fundamentals: Last 12 month revenue growth of 6.1% and operating margin of 19.0%.
- Liquidity: Has Debt to Equity ratio of 0.43 and Cash to Assets ratio of 0.01
- Valuation: Ormat Technologies stock is currently trading at P/E multiple of 48.5 and P/EBIT multiple of 25.6
- Has returned (median) 14.3% within a year following sharp dips since 2010. See ORA Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Very High valuation – making the stock Unattractive. For details, see Buy or Sell ORA Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ORA stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ORA stock falls another 20-30% to $75 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- ORA stock fell 53.2% from a high of $126.02 on 10 February 2021 to $59.01 on 13 November 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 27 January 2026
- Since then, the stock increased to a high of $129.71 on 3 February 2026 , and currently trades at $106.47
| ORA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -53.2% | -25.4% |
| Time to Full Recovery | 806 days | 464 days |
2020 Covid Pandemic
- ORA stock fell 36.5% from a high of $86.37 on 19 February 2020 to $54.86 on 21 September 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 December 2020
| ORA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.5% | -33.9% |
| Time to Full Recovery | 88 days | 148 days |
2018 Correction
- ORA stock fell 29.4% from a high of $70.08 on 31 January 2018 to $49.51 on 6 November 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 August 2019
| ORA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -29.4% | -19.8% |
| Time to Full Recovery | 275 days | 120 days |
2008 Global Financial Crisis
- ORA stock fell 59.9% from a high of $57.00 on 28 December 2007 to $22.85 on 29 October 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 21 February 2017
| ORA | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -59.9% | -56.8% |
| Time to Full Recovery | 3,037 days | 1,480 days |
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