Ormat Technologies, Inc. (ORA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Ormat Technologies, Inc. (ORA) Utility Operations & Dividend Profile

Ormat Technologies, founded in 1965, is a global leader in geothermal energy, providing electricity generation, product manufacturing, and energy storage solutions. With a presence in the United States, Indonesia, and Kenya, among others, Ormat leverages its expertise to develop, own, and operate renewable power plants, contributing to a diversified energy landscape.

What Is the Investment Thesis for ORA?

Ormat Technologies presents a compelling investment case driven by the increasing global demand for renewable energy and the company's established expertise in geothermal power. With a market capitalization of $6.18B and a P/E ratio of 52.6, Ormat demonstrates financial stability and growth potential. The company's diverse revenue streams, spanning electricity generation, product sales, and energy storage solutions, mitigate risk and provide a solid foundation for future expansion. Key growth catalysts include the development of new geothermal power plants and the expansion of its energy storage segment. However, potential risks include regulatory changes and competition from other renewable energy sources. Ormat's commitment to innovation and its proven track record in the renewable energy sector position it for long-term success.

Based on FMP financials and quantitative analysis

ORA Key Highlights

• Market Cap of $6.18B indicates strong investor confidence in Ormat's market position and future growth prospects.
• P/E Ratio of 52.6 reflects investor expectations of future earnings growth, though it is higher than some industry peers.
• Profit Margin of 11.0% demonstrates the company's ability to generate profits from its operations.
• Gross Margin of 27.5% showcases Ormat's efficiency in managing production costs within the renewable energy sector.
• Dividend Yield of 0.39% provides a modest income stream for investors, complementing potential capital appreciation.

Who Are ORA's Competitors?

ORA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ORA's Key Strengths?

• Established expertise in geothermal technology.
• Integrated business model with diverse revenue streams.
• Global presence in multiple countries.
• Long-term power purchase agreements.

What Are ORA's Weaknesses?

• Reliance on geothermal resources, which can be geographically limited.
• Exposure to regulatory changes and permitting processes.
• Capital-intensive nature of power plant development.
• Sensitivity to fluctuations in energy prices.

What Could Drive ORA Stock Higher?

• Development of new geothermal power plants in strategic locations.
• Expansion of the energy storage segment to meet growing demand.
• Potential acquisitions of complementary businesses in the renewable energy sector.
• Favorable government policies and incentives for renewable energy projects.
• Technological advancements in geothermal energy extraction and power generation.

What Are the Key Risks for ORA?

• Financial-distress signal — its Altman Z-Score of 1.45 sits in the distress zone (elevated bankruptcy risk).
• Rich valuation — a P/E of 52.6 runs well above the Utilities sector’s ~26x, leaving little room for a miss.
• Insider selling — insiders were net sellers of roughly $2.6M recently.
• Regulatory changes and permitting delays impacting project development.
• Competition from other renewable energy sources, such as solar and wind.
• Environmental concerns related to geothermal development.
• Geopolitical risks in certain operating regions.
• Fluctuations in energy prices affecting revenue and profitability.

What Are the Growth Opportunities for ORA?

• Expansion of Geothermal Power Plants: Ormat has the opportunity to expand its geothermal power plant portfolio in regions with high geothermal potential, such as East Africa and Southeast Asia. The global geothermal power market is projected to reach $11.2 billion by 2028, offering substantial growth prospects for Ormat. By leveraging its expertise in geothermal technology and project development, Ormat can capitalize on this growing market and increase its electricity generation capacity.
• Growth in Energy Storage Solutions: The increasing demand for energy storage solutions presents a significant growth opportunity for Ormat. As renewable energy sources become more prevalent, the need for reliable energy storage to address intermittency issues will continue to rise. Ormat's Energy Storage segment can benefit from this trend by providing engineering, procurement, construction, operation, and maintenance services for energy storage units, catering to utilities, grid operators, and commercial customers.
• Product Segment Expansion: Ormat can further expand its Product segment by designing, manufacturing, and selling equipment for geothermal and recovered energy-based electricity generation. This includes turbo-generators and heavy-duty direct-current generators. By targeting contractors, developers, owners, and operators of geothermal power plants, as well as companies in energy-intensive industries, Ormat can increase its product sales and market share in the renewable energy equipment market.
• Strategic Partnerships and Acquisitions: Ormat can pursue strategic partnerships and acquisitions to expand its geographic reach and technological capabilities. Collaborating with other renewable energy companies or acquiring complementary businesses can enhance Ormat's competitive position and accelerate its growth. For example, partnering with a solar energy company could allow Ormat to offer hybrid renewable energy solutions, combining geothermal and solar power generation.
• Government Incentives and Regulations: Favorable government policies and incentives for renewable energy projects can drive Ormat's growth. Tax credits, subsidies, and renewable energy mandates can make geothermal and recovered energy projects more economically attractive, encouraging investment and development. Ormat can actively engage with policymakers to advocate for supportive policies and leverage available incentives to expand its renewable energy portfolio.

What Opportunities Does ORA Have?

• Expansion into new geographic markets with geothermal potential.
• Growth in energy storage solutions to complement renewable energy sources.
• Development of hybrid renewable energy projects, combining geothermal with solar or wind.
• Leveraging government incentives and regulations for renewable energy.

What Threats Does ORA Face?

• Competition from other renewable energy sources, such as solar and wind.
• Technological advancements that could disrupt the geothermal energy market.
• Environmental concerns related to geothermal development.
• Geopolitical risks in certain operating regions.

What Are ORA's Competitive Advantages?

• Technological Expertise: Ormat possesses deep expertise in geothermal technology, developed over decades of experience.
• Integrated Business Model: The company's integrated approach, encompassing power generation, equipment manufacturing, and energy storage, provides a competitive advantage.
• Global Footprint: Ormat's presence in multiple countries diversifies its revenue streams and reduces geographic risk.
• Long-Term Contracts: Ormat typically secures long-term power purchase agreements, providing stable revenue streams.

What Does ORA Do?

Ormat Technologies, Inc., established in 1965 and headquartered in Reno, Nevada, is a prominent player in the renewable energy sector, specializing in geothermal and recovered energy power generation. The company operates through three primary segments: Electricity, Product, and Energy Storage. The Electricity segment focuses on developing, building, owning, and operating geothermal, solar photovoltaic, and recovered energy-based power plants, selling the generated electricity to various customers. The Product segment designs, manufactures, and sells equipment crucial for geothermal and recovered energy-based electricity generation, including turbo-generators and heavy-duty direct-current generators. This segment caters to contractors, developers, owners, and operators of geothermal power plants, as well as companies in energy-intensive industries. The Energy Storage segment offers comprehensive energy storage solutions, including engineering, procurement, construction, operation, and maintenance services. Ormat's global footprint extends across the United States, Indonesia, Kenya, Turkey, Chile, Guadeloupe, Guatemala, Ethiopia, New Zealand, and Honduras, reflecting its commitment to providing sustainable energy solutions worldwide. Ormat's integrated approach, encompassing power generation, equipment manufacturing, and energy storage, positions it as a key contributor to the transition towards cleaner and more reliable energy sources.

What Products and Services Does ORA Offer?

• Develops, builds, owns, and operates geothermal power plants.
• Develops, builds, owns, and operates solar photovoltaic power plants.
• Develops, builds, owns, and operates recovered energy-based power plants.
• Sells electricity generated from its power plants.
• Designs, manufactures, and sells equipment for geothermal electricity generation.
• Provides engineering, procurement, construction, operation, and maintenance services for geothermal power plants.
• Offers energy storage solutions and related services.

How Does ORA Make Money?

• Generates revenue by selling electricity produced from geothermal, solar, and recovered energy power plants.
• Earns revenue from the sale of equipment for geothermal and recovered energy-based electricity generation.
• Provides services related to the engineering, procurement, construction, operation, and maintenance of power plants and energy storage units.
• Offers energy storage solutions to utilities and other customers.

What Industry Does ORA Operate In?

Ormat Technologies operates within the rapidly expanding renewable energy sector, driven by global efforts to reduce carbon emissions and transition to sustainable energy sources. The geothermal energy market, in particular, is poised for significant growth, with increasing investments in exploration and development. Ormat competes with other renewable energy companies like CMS Energy Corporation (CMS) and Brookfield Renewable Partners L.P. (BEP), as well as companies focused on other renewable sources such as solar and wind. The company's expertise in geothermal technology and its integrated business model provide a competitive edge in this dynamic landscape.

Who Are ORA's Key Customers?

• Utilities purchasing electricity from Ormat's power plants.
• Contractors and developers of geothermal power plants.
• Owners and operators of geothermal power plants.
• Operators of interstate natural gas pipelines and gas processing plants.
• Companies in energy-intensive industrial processes.

Net sellingInsider Activity

Over the past six months, Ormat Technologies, Inc. insiders filed 23 SEC Form 4 transactions — 12 sales and 11 purchases. On net that is roughly 9K shares disposed (about $2.6M), a signal worth weighing alongside the fundamentals.

FY2026 estForward Outlook

Wall Street analysts project Ormat Technologies, Inc. revenue of about $1.16B for fiscal 2026, with EPS near $2.29. The estimate reflects 9 contributing analysts.

F-Score 6/9Financial Health

Ormat Technologies, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.45 places it in the distress zone, a signal of elevated financial risk.

ROE 5%Key Financial Metrics

Return on equity for Ormat Technologies, Inc. stands at 5.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.9%, showing how much profit it generates from its asset base. ORA trades at a trailing price-to-earnings ratio of 52.58, above the Utilities sector average of ~26x. Its free cash flow yield is -3.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.07 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.9%, the inverse of the P/E and a quick read on earnings relative to price.

Ormat Technologies, Inc. (ORA) Valuation Context

Valued at $6.18B, ORA is classified as a mid-cap stock. Relative to its peer group, ORA's quantitative score of 39/100 is below the peer average of 51/100.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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