ORA Stock Analysis — Ormat Technologies
Sector: Utilities
AI Verdict
You're paying up for a unique geothermal moat, but the 39.8x forward P/E is only justified if Ormat delivers on its 32.3% EPS growth.
Competitive Moat
Ormat owns and operates geothermal and recovered energy generation plants, a niche with high barriers to entry due to site-specific resource access and permitting hurdles. Its vertically integrated model and proprietary technology for geothermal development make it difficult for new entrants to replicate its scale and expertise.
Summary
Ormat stands out for its rare exposure to geothermal power, a renewable segment with limited competition and long-term contracts.
Where It Stands
Shares trade at 39.8x next year's earnings versus the utility sector median of 18x, with analysts expecting 32.3% EPS growth and a trailing PEG of 1.63, suggesting the valuation is fair for the growth rate.
Key Metrics
- Trailing P/E: 52.6x
- Forward P/E: 39.8x
- PEG Ratio: 1.63
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Dividend Yield: 0.01%
- 52-Week High: $146.39
- 52-Week Low: $89.70
Analyst Consensus
11 Buy · 5 Hold · 1 Sell (17 analysts)
Bull Case
Forward EPS growth of 32.3% is well above the sector norm, which helps justify the premium 39.8x forward P/E.
Bear Case
If the forward P/E compresses to the sector median of 18x, the stock would lose over 50% of its valuation even if earnings grow as forecast.
Catalyst to Watch
Watch for new project wins or regulatory approvals, as these could accelerate growth and support the current multiple.