Ormat Technologies Inc (ORA) Stock Analysis
Verdict: AVOID
Heavy CapEx and 6.7x Net Debt/EBITDA cap upside while stagnant EPS at $2.04 invalidates the 44x P/E utility premium.
Investment score: 31/100
Analysis as of
Is Ormat Technologies Inc stock worth reviewing? The TradeMates thesis
The TradeMates model identifies Ormat Technologies as an AVOID at $91.89. Despite strong baseload clean energy positioning, the stock carries high balance sheet risk with Net Debt/EBITDA of 6.68x and high capital expenditures ($619.8M in 2025) that generate negative free cash flow (-$284.7M). A TTM P/E of 44.18x is unwarranted given flat EPS performance over the past three years.
7-factor investment score
- Valuation: 25/100 (weight 20%)
- Financial Health: 30/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 40/100 (weight 15%)
- Insider Sentiment: 15/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
Ormat Technologies Inc opportunities and risks
What speaks for ORA
- Expansion in Geothermal PPA Portfolio
What speaks against ORA
- Excessive Leverage and Interest Rate Sensitivity
Frequently asked questions about Ormat Technologies Inc (ORA)
Is ORA stock a good investment?
The TradeMates model rates Ormat Technologies Inc as AVOID with an investment score of 31/100. The TradeMates model identifies Ormat Technologies as an AVOID at $91.89. Despite strong baseload clean energy positioning, the stock carries high balance sheet risk with Net Debt/EBITDA of 6.68x and high capital expenditures ($619.8M in 2025) that generate negative free cash flow (-$284.7M). A TTM P/E of 44.18x is unwarranted given flat EPS performance over the past three years. This is algorithmic model output, not personal investment advice.
Is ORA stock a buy?
The TradeMates model verdict for ORA is AVOID with an investment score of 31/100. Treat this as a model signal to review, not a personal buy recommendation.