Ormat Technologies, Inc. Projection: Can It Climb Back to €79.5?
Ormat Technologies, Inc. (HNM.DE) currently stands at €61.08 on Germany’s XETRA exchange, close to its year low of €56.18. With a PE ratio of 36.80 and a market cap of €3.69 billion, investors are questioning whether this Utilities sector player can regain its peak at €79.5. Detailed analysis of its financial metrics and market conditions provides insight into Ormat’s path forward.
Current Market Performance
Ormat Technologies is trading at €61.08, reflecting a slight 0.49% increase, as its price stabilizes between a daily low of €60.26 and a high of €61.42. Despite recent volume data being unavailable, the average volume stands at a mere 13, which may indicate lower liquidity influencing price volatility. The stock is also down 7.26% in the past day and 11.58% over the last three months, signifying bearish trends.View Details.
Financial Metrics and Valuation Ratios
Ormat’s PE ratio of 36.80 aligns with an EPS of €1.66. Valuation metrics like the PB ratio of 1.78 and PS ratio of 6.54 suggest the stock might be overvalued compared to the Utilities sector average. The company’s revenue per share (TTM) is €10.79, with net income growth slightly negative at -0.54% for the FY 2024.
Growth Prospects and Forecasts
Ormat’s operating cash flow climbed 32.81%, although free cash flow remains negative at -€1.46 per share. Despite a revenue growth of 6.06% last fiscal year, net income fell by -0.54%, impacting analysts’ outlooks. Meyka AI forecasts a modest yearly price target of €62.40, with a three-year projection of €50.79, reflecting conservative growth expectations.
Sector Performance and Market Sentiment
Operating in the General Utilities industry, Ormat shows competitive gross and operating profit margins of 29.57% and 18.29% respectively. However, its debt-to-equity ratio of 1.01 poses financial leverage concerns, further complicating its stock performance in a volatile Utilities sector.
Final Thoughts
While Ormat Technologies shows resilience with its diversified operations in geothermal energy, the current bearish trends and valuation metrics suggest a cautious outlook. Investors should consider these factors, alongside broader market conditions, before jumping in. Stock prices can fluctuate based on market conditions, economic factors, and company-specific events.
FAQs
Ormat Technologies is currently priced at €61.08 on the XETRA exchange in Germany, experiencing a day low of €60.26 and a high of €61.42 recently. View More
With a PE ratio of 36.80, Ormat is relatively higher than many within the Utilities sector, suggesting it might be overvalued by traditional measures.
Meyka AI projects a yearly price around €62.40, reflecting slight upside potential, but longer-term forecasts like €50.79 in three years indicate tempered growth expectations.
The stock has decreased 7.26% in the last day and 11.58% over the past three months, signaling a bearish trend in recent market conditions on Germany’s XETRA exchange.
Ormat faces financial risks with a high debt-to-equity ratio of 1.01 and negative free cash flow per share, which might impact its operational flexibility.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
