Ormat Technologies Inc. Common Stock (ORA)

FairStock Score: 22/100 — RISKY

Key Financials

Strengths

• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 19.6% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($44) with negative 159% margin of safety—limited downside protection
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Ormat Technologies Inc. Common Stock is a small-cap utilities company valued at $6.9 billion. The business generates $990 million in annual revenue with a 3.2% net margin. From a quality standpoint, Ormat shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is commanding a steep 56.2x multiple, with trades far above its Graham Number ($44) with no margin of safety. Growth dynamics show revenue growing at 19.6% and profit growth of -23.2%. Our composite FairStock Score of 22/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Ormat's 20% revenue growth trajectory could accelerate as it captures additional market share in the utilities sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 56x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer