Ormat Technologies Stock To $76?
Ormat Technologies (ORA) stock has fallen 9.0% during the past day, and is currently trading at $106.47. Our multi-factor assessment suggests that it may be time to sell ORA stock. We have, overall, a pessimistic view of the stock, and a price of $76 may not be out of reach. We believe there is a near-equal mix of good and bad in ORA stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Moderate |
| Profitability | Strong |
| Financial Stability | Moderate |
| Downturn Resilience | Weak |
| Operating Performance | Moderate |
| Stock Opinion | Unattractive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $6.5 Bil in market cap, Ormat Technologies provides geothermal and recovered energy power solutions, including equipment design, manufacturing, and energy storage services encompassing engineering, construction, operation, and maintenance.
[1] Valuation Looks Very High
| ORA | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 7.0 | 3.4 |
| Price-to-Earnings Ratio | 49.3 | 25.0 |
| Price-to-Free Cash Flow Ratio | -30.8 | 21.1 |
This table highlights how ORA is valued vs broader market. For more details see: ORA Valuation Ratios
[2] Growth Is Moderate
- Ormat Technologies has seen its top line grow at an average rate of 9.5% over the last 3 years
- Its revenues have grown 6.1% from $890 Mil to $944 Mil in the last 12 months
- Also, its quarterly revenues grew 17.9% to $250 Mil in the most recent quarter from $212 Mil a year ago.
| ORA | S&P 500 | |
|---|---|---|
| 3-Year Average | 9.5% | 5.6% |
| Latest Twelve Months* | 6.1% | 6.4% |
| Most Recent Quarter (YoY)* | 17.9% | 7.5% |
This table highlights how ORA is growing vs broader market. For more details see: ORA Revenue Comparison
[3] Profitability Appears Strong
- ORA last 12 month operating income was $179 Mil representing operating margin of 19.0%
- With cash flow margin of 41.2%, it generated nearly $389 Mil in operating cash flow over this period
- For the same period, ORA generated nearly $133 Mil in net income, suggesting net margin of about 14.1%
| ORA | S&P 500 | |
|---|---|---|
| Current Operating Margin | 19.0% | 18.8% |
| Current OCF Margin | 41.2% | 20.7% |
| Current Net Income Margin | 14.1% | 12.9% |
This table highlights how ORA profitability vs broader market. For more details see: ORA Operating Income Comparison
[4] Financial Stability Looks Moderate
- ORA Debt was $2.8 Bil at the end of the most recent quarter, while its current Market Cap is $6.5 Bil. This implies Debt-to-Equity Ratio of 41.9%
- ORA Cash (including cash equivalents) makes up $80 Mil of $6.1 Bil in total Assets. This yields a Cash-to-Assets Ratio of 1.3%
| ORA | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 41.9% | 20.2% |
| Current Cash-to-Assets Ratio | 1.3% | 7.2% |
[5] Downturn Resilience Is Weak
ORA has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
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 |
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 |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read ORA Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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