Bedrijfsoverzicht
Ormat Technologies, Inc. is a specialized entity within the Utilities sector, specifically focusing on the renewable energy industry through geothermal and recovered energy power generation. The company operates its facilities across a diverse geographic footprint including the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, Guadeloupe, New Zealand, Honduras, France, the Philippines, and other international markets. Its operational scale is substantial, reflected by a market capitalization of $7.08B, annual revenue of $989.54M, and an employee base of 1648. These financial magnitudes indicate that Ormat holds a significant position within the renewable energy landscape, commanding a valuation that suggests strong market confidence despite the capital-intensive nature of utility operations. The concentration of operations in multiple jurisdictions highlights a strategy designed to mitigate regional regulatory risks while capitalizing on global demand for sustainable electricity sources.
Financiële gezondheid
The company reported a total revenue of $989.54M over the trailing twelve months, generating net income of $123.90M and an EBITDA of $467.13M. The substantial gap between the $989.54M revenue and the $123.90M net income reveals a cost structure where non-operating expenses, interest, and taxes consume approximately 87.5% of gross earnings before arriving at the bottom line. However, the EBITDA figure of $467.13M provides a clearer picture of operational profitability before financing and non-cash charges. The company currently holds $147.63M in cash assets, yet it is offset by a debt load of $2.86B, resulting in a negative free cash flow of -$291,521,248. This negative cash flow indicates that the company is currently spending significantly more on capital expenditures than it generates from operations, which is typical for infrastructure expansion but limits immediate financial flexibility. Profitability is further dissected by three key margins: a gross margin of 27.6%, an operating margin of 17.9%, and a profit margin of 12.5%. The gross margin indicates the efficiency of production relative to raw energy inputs, while the operating and profit margins demonstrate the impact of overhead and tax structures on the final earnings. The balance sheet is heavily leveraged, evidenced by a debt-to-equity ratio of 106.16%, where debt exceeds equity, suggesting an aggressive capital structure typical of utility firms but requiring stable cash flows to service. Liquidity is constrained by a current ratio of 0.81, indicating that current liabilities exceed current assets, which suggests potential pressure on short-term liquidity management. Return metrics show a Return on Equity of 4.8% and a Return on Assets of 1.7%, revealing that management generates modest returns relative to the equity invested and the total asset base, reflecting the capital-intensive nature of the geothermal business.
Waarderingsbeoordeling
Valuation multiples for Ormat Technologies include a trailing twelve-month P/E ratio of 57.04 and a forward P/E of 44.32. The difference between these two metrics implies that the market expects earnings to increase significantly in the future, as the forward multiple is lower than the trailing multiple despite the current earnings decline. The price-to-book ratio stands at 2.76, indicating that the market values the company at a premium of roughly 176% over its book value. This premium suggests investors are willing to pay more for the equity than the net asset value, potentially reflecting confidence in the company's intangible assets or future growth potential. Alternative valuation metrics such as the price-to-sales ratio of 7.15 and an EV/EBITDA of 21.12 provide additional context, suggesting the stock is priced high relative to its sales and earnings before interest, taxes, depreciation, and amortization. Price action over the last year shows a 52-week high of $132.58 and a 52-week low of $69.61. Without the exact current share price, the specific percentage position relative to this range cannot be calculated, but the wide spread indicates significant volatility and potential for price re-rating. The beta value of 0.80 indicates that the stock price is less volatile than the broader market, moving with 20% less intensity than the benchmark index.
Growth & Income
Growth dynamics are characterized by a revenue growth rate of 19.6% year-over-year contrasted with an earnings growth rate of -24.4% year-over-year. This divergence implies that while top-line sales are expanding rapidly, likely due to increased capacity or market penetration, profitability per unit sold or operational efficiency has deteriorated sharply, causing earnings to fall faster than revenue. The company does pay a dividend with a yield of 0.4% and a payout ratio of 23.8%. Given the negative earnings growth and negative free cash flow, the sustainability of this payout ratio is questionable as it relies on retained earnings from past periods rather than current operating cash generation. The low dividend yield combined with the reinvestment needs indicated by the negative free cash flow suggests the company prioritizes maintaining its asset base and growing capacity over returning significant capital to shareholders. Overall, the growth and income profile presents a mixed picture of strong top-line expansion offset by significant earnings contraction and capital outflows that challenge immediate income stability for investors seeking current yield.