ORA Stock Risk & Deep Value Analysis
Ormat Technologies Inc
Utilities • Utilities - Renewable
DVR Score
out of 10
What You Need to Know About ORA Stock
We analyzed Ormat Technologies Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran ORA through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
ORA Risk Analysis & Red Flags
What Could Go Wrong
Ormat's capital-intensive business model, especially for geothermal, requires continuous access to substantial, affordable financing. If rising interest rates or tighter credit conditions make securing the necessary $1B+ capital for project development more expensive or difficult, it could slow growth and compress project margins, significantly impacting future profitability.
Risk Matrix
Overall
Moderate
Financial
Medium
Market
Low
Competitive
Medium
Execution
Medium
Regulatory
Medium
Red Flags
- ⚠
Insider selling: CFO and a director recently sold shares, which can sometimes signal concerns about future prospects, although specific transaction details and magnitudes are not provided.
- ⚠
High implied forward P/E (approx. 60x+): The current valuation already prices in substantial future growth, leaving limited room for upside from multiple expansion alone.
- ⚠
Capital-intensive business: Ongoing need for significant external financing (debt/equity) to fund new projects, which can lead to dilution (e.g., convertible notes) or increased debt burden.
Upcoming Risk Events
- 📅
Interest Rate Hikes by Central Banks (Ongoing 2026): Further 50bps+ rate hikes could significantly increase project financing costs, potentially delaying or reducing the profitability of new capital-intensive geothermal and ESS projects.
- 📅
Heightened Competition in Energy Storage (Ongoing 2026-2027): Aggressive pricing or faster deployment by major competitors (e.g., Fluence Energy, Tesla, LG Energy Solution) could lead to margin compression in Ormat's ESS segment or lower project win rates.
When to Reconsider
- 🚪
Exit if quarterly revenue growth decelerates below 20% YoY for two consecutive quarters, signaling a significant slowdown from the Q1 2026 rate of 75.8%.
- 🚪
Sell if gross margin for the Product and Energy Storage segments combined falls below 20% for any quarter, indicating severe competitive or execution pressures.
- 🚪
Exit if debt-to-equity ratio consistently exceeds 2.5, indicating an increasingly leveraged balance sheet beyond historical comfort levels for this type of company (based on training data for typical D/E of ~1.5-2.0).
Unlock ORA Risk Analysis & Red Flags
Create a free account to see the full analysis
What Does Ormat Technologies Inc (ORA) Do?
Market Cap
$8.76B
Sector
Utilities
Industry
Utilities - Renewable
Employees
1,512
Ormat Technologies, Inc. engages in the geothermal and recovered energy power business in the United States, Indonesia, Kenya, Turkey, Chile, Guatemala, Guadeloupe, New Zealand, Honduras, France, Indonesia, the Philippines, and internationally. It operates through three segments: Electricity, Product, and Energy Storage. The Electricity segment develops, builds, owns, and operates geothermal, solar photovoltaic, and recovered energy-based power plants; and sells electricity. The Product segment designs, manufactures, and sells equipment for geothermal and recovered energy-based electricity generation; and provides services relating to the engineering, procurement, and construction of geothermal and recovered energy-based power plants. The Energy Storage segment provides battery energy storage systems and related services. The company serves contractors, geothermal plant owners and operators, interstate natural gas pipeline owners and operators, gas processing plant owners and operators, cement plant owners and operators, and biomass facilities owners and operators, as well as other companies engaged in energy-intensive industrial processes. Ormat Technologies, Inc. was founded in 1965 and is headquartered in Reno, Nevada.
Visit Ormat Technologies Inc WebsiteInvestment Thesis
If Ormat consistently achieves +50% YoY revenue growth in its Energy Storage and Product segments over the next 3-5 years, driven by new project wins and effective capital deployment from the $1B convertible notes, its market cap could realistically double or triple to $17B-$25B. This is bullish because the market often undervalues the accelerated growth potential of its ESS segment when viewed alongside its stable, but slower-growth, geothermal assets.
Is ORA Stock Undervalued?
Unlock the full AI analysis for ORA
Get the complete DVR score, risk analysis, and more
Unlock the full report
Create a free account to see the DVR score, risk flags, and AI analysis.
ORA Price Targets & Strategy
12-Month Target
$155.00
Bull Case
$175.00
Bear Case
$120.00
Valuation Basis
Based on 66x forward P/E applied to $2.35 est. FY26 EPS.
Entry Strategy
Consider dollar-cost averaging on dips towards $130-$135, which represents previous support levels and aligns with the lower end of recent analyst targets.
Exit Strategy
Take partial profits at $155-$160 (aligns with analyst high targets). Implement a stop-loss order if the price falls below $125 (break of key support).
Portfolio Allocation
3-5% for moderate risk tolerance, reflecting significant growth potential but also high valuation and capital-intensive business model.
Price Targets & Strategy
Sign up free to unlock price targets and entry/exit strategies
Is ORA Financially Healthy?
Valuation
P/E Ratio
68.99
Forward P/E
50.71
EV/EBITDA
17.09
PEG Ratio
3.73
Price/Book
3.45
Price/Sales
6.46
Profitability
Gross Margin
33.49%
Operating Margin
17.01%
Net Margin
10.91%
Return on Equity
5.02%
Revenue Growth
10.27%
EPS
$2.06
Balance Sheet
Current Ratio
0.81
Quick Ratio
0.65
Debt/Equity
1.02
Total Debt
$2.76B
Cash & Equivalents
$79.56M
Cash Flow
Operating Cash Flow
$388.68M
Free Cash Flow
-$213.75M
Other
Beta (Volatility)
0.86
Dividend Yield
0.33%
Does ORA Have a Competitive Moat?
Sign in to unlockMoat Rating
🛡️ Narrow
Moat Trend
Stable in geothermal due to high barriers to entry; potentially Expanding in Energy Storage if their integrated solutions become dominant.
Moat Sources
3 Identified
Ormat's moat in geothermal is durable due to the specialized geological expertise, high upfront capital costs, and long development cycles required. In energy storage, the moat is less strong but building through integrated solutions and established customer relationships.
Moat Erosion Risks
- •Technological obsolescence or significant cost reductions in alternative base-load or storage technologies that could undercut geothermal's competitiveness.
- •Intensifying competition in the Energy Storage market, leading to commoditization and margin pressure, eroding profitability for new ESS projects.
ORA Competitive Moat Analysis
Sign up to see competitive advantages
ORA Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (No specific data provided, assuming general market sentiment).
Institutional Sentiment
Positive, with 95.49% institutional ownership and recent analyst upgrades/target raises from UBS ($143 → $152) and Piper Sandler ($125 → $142).
Insider Activity (Form 4)
Several insiders, including the CFO and a director, recently sold shares. Specific amounts and dates are not provided in the research, so the impact is unclear but warrants monitoring.
Options Flow
Normal options activity (No specific unusual activity mentioned in the research).
Earnings Intelligence
Next Earnings
Estimated early-August 2026 (for Q2 2026 results).
Surprise Probability
Medium-High, given the strong Q1 2026 beat and positive analyst sentiment. However, the market will expect continued strong performance.
Historical Earnings Pattern
Based on Q1 2026 reaction, the stock tends to react positively to significant earnings beats and strong growth, while any slowdown in guidance could lead to profit-taking due to the high valuation.
Key Metrics to Watch
Competitive Position
Top Competitor
NextEra Energy Resources (parent of NEE)
Market Share Trend
Gaining market share in the rapidly expanding Energy Storage segment and maintaining a stable, strong position in the more mature geothermal power market.
Valuation vs Peers
Ormat likely trades at a premium to traditional utility-scale power generators due to its higher growth profile (especially in ESS) but potentially at par or slight discount to pure-play high-growth ESS companies. Its implied forward P/E (60x+) is higher than many diversified renewable utilities.
Competitive Advantages
- •Integrated Geothermal Expertise: End-to-end capabilities in developing, building, owning, and operating geothermal plants.
- •Hybrid Solutions: Ability to combine geothermal with energy storage or solar, offering more comprehensive solutions.
- •Global Footprint & Diverse Revenue: Operations across multiple continents and diversified revenue streams from power generation, products, and storage.
Market Intelligence
Sign up free to unlock sentiment, earnings intel, and peer analysis
What Could Drive ORA Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings (Estimated early-August 2026): Strong performance in Energy Storage revenue (target >$70M) and affirmation/raise of 2026 guidance.
- •Hoku Solar-plus-Storage Integration & Expansion (H2 2026): Successful operational ramp-up of the acquired 16.5MW solar PV and 40MWh battery storage facility, exceeding integration cost/time estimates.
Medium-Term (6-18 months)
- •New Geothermal/Energy Storage Project Wins (FY2027): Announcement of 200MW+ additional capacity under long-term PPAs, signaling sustained pipeline conversion and future revenue streams (estimated $100M+ annual revenue potential).
- •Expansion of Product Segment Orders (FY2027): Securing major product sales contracts (e.g., full geothermal power plant components) for 3rd party developers in new markets, driving non-PPA revenue diversification.
Long-Term (18+ months)
- •Achieving ESS Market Leadership in Key Geographies (2028-2029): If Ormat captures >5% market share in utility-scale ESS in high-growth regions like the US Southwest or Australia, enabling an additional $500M+ in annual ESS revenue run-rate.
- •Technological Breakthroughs in Geothermal (2028-2030): If Ormat develops or acquires technology that significantly reduces geothermal drilling costs or expands viable resource locations, opening up new multi-billion dollar TAM and improving project IRR by >200bps.
Catalysts & Growth Drivers
Sign up free to see growth catalysts
What's the Bull Case for ORA?
- ✓
Quarterly Energy Storage revenue growth: Monitor for sustained >50% YoY growth to validate market penetration and execution.
- ✓
Project COD adherence: Track on-time and on-budget commissioning of new geothermal and ESS projects to ensure efficient capital deployment.
- ✓
Gross margin for Product & ESS segments: Watch for stabilization or expansion above 30%, signaling pricing power and operational efficiency.
Bull Case Analysis
Sign up free to see the bull case
Competing with ORA
See how Ormat Technologies Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Ormat Technologies Inc ORA | $8.8B | 4.2 | 69.0 | $1.2B | 10.9% | 10.3% | |
American Electric Power Company Inc AEP | $71.7B | 0.8 | 20.0 | $21.9B | 16.8% | 11.0% | Compare → |
Duke Energy Corp DUK | $99.6B | 1.0 | 20.1 | $7.9B | 15.4% | 6.2% | Compare → |
Nextera Energy Inc NEE | $179.3B | 1.4 | 21.9 | $24.2B | 29.4% | 10.3% | Compare → |
📊 Explore More Stock Analysis
Get comprehensive Deep Value Reports for thousands of stocks. Research risk, financial health, and investment potential with our AI-powered analysis.
How Ormat Technologies Inc Makes Money
Ormat Technologies Inc. is a leading provider of geothermal and recovered energy power, as well as energy storage solutions. The company designs, builds, owns, and operates its power plants, selling the electricity generated to utilities and industrial customers under long-term contracts. Additionally, Ormat manufactures and sells power generation equipment (Product segment) to third parties and offers grid-scale battery energy storage systems, which provide grid stability and ancillary services. Their business model leverages proprietary technology and project development expertise in renewable energy infrastructure.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Ormat Technologies Inc (ORA)?
As of June 4, 2026, Ormat Technologies Inc has a DVR Score of 4.2 out of 10, placing it in the "Proceed with Caution" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Ormat Technologies Inc?
Ormat Technologies Inc's market capitalization is approximately $8.8B. The company operates in the Utilities sector within the Utilities - Renewable industry.
What ticker symbol does Ormat Technologies Inc use?
ORA is the ticker symbol for Ormat Technologies Inc. The company trades on the NYQ.
What is the risk level for ORA stock?
Our analysis rates Ormat Technologies Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of ORA?
Ormat Technologies Inc currently has a price-to-earnings (P/E) ratio of 69.0. This is above the market average, suggesting the stock may be priced for high growth expectations.
Does Ormat Technologies Inc pay a dividend?
Yes, Ormat Technologies Inc pays a dividend with a current yield of approximately 0.33%.
Is Ormat Technologies Inc's revenue growing?
Ormat Technologies Inc has reported revenue growth of 10.3%. The company is showing strong top-line momentum.
Is ORA stock profitable?
Ormat Technologies Inc has a profit margin of 10.9%. The company is profitable but margins are modest.
How often is the ORA DVR analysis updated?
Our AI-powered analysis of Ormat Technologies Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on June 4, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for ORA (Ormat Technologies Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.