Only one of our models could value this stock with confidence, so use it as a guide.
Not used by alerts or posts.
Valued as a utility: P/E comparison and EV/EBITDA comparison.
ACCE opinionOrmat Technologies Inc. Common Stock (ORA)
Fair value (2 models)
Not available
ACCE price target
$82.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Price used: $87.09 at the close on 23 Oct 2026, 22:00 CEST.
Models: EV/EBITDA comparison and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
35
out of 100
Analysts
54% buy
13 covering
P/E
42.7x
forward 33.9x
1-year return
-16.8%
Dividend yield
0.54%
Ormat Technologies Inc. Common Stock in four questions
Plain answers, details below
Free accounts get 5 full stock pages a month, including the four answers.
Overview
ACCE thesis
Ormat Technologies runs geothermal power plants and sells the electricity under long-term contracts, with a smaller business in energy storage and its own turbine and heat-recovery equipment. The durable part of the case is the geothermal fleet, since baseload clean power with predictable output is scarce and data-center and utility buyers are paying for it. Revenue growth of 10.6% is respectable for a utility, but at a 43.8 trailing P/E and 35.8 forward, the market is already pricing in a lot of execution on new plant commissioning and storage build-out. The score of 37/100 and a 4.8% ROE say the balance sheet and capital intensity still weigh on returns, so the question for us is whether margin improvement (13.6% operating margin today) can outrun the heavy capex. Worth a deeper look on contract backlog, project timing and free cash flow conversion before any view on sizing.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Free cash flow deeply negative
FCF is $-284.7M against a $5.3B market cap, while debt/equity sits at 1.12. Heavy capex is being funded by borrowing, which leaves little margin for error.
high
Earnings falling while revenue grows
Revenue is up 10.6% year on year but earnings are down 6.5%. Growth is not converting to profit, so the 42.5x trailing P/E is hard to justify on current results.
moderate
Score down sharply in 90 days
The ACCE score fell from 47 to 35 over 90 days, with the margin sub-score at just 17. The deterioration is broad, not isolated to one metric.
moderate
Heavy short interest
Short interest is 11.4% of the float. That is a meaningful bet against the stock, and it can amplify moves in either direction.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 10.6% year over year, ahead of the 7.0% average annual growth over the past five years.
Analysts' mean price target of $123.58 sits 42.6% above the current share price, and 7 of 13 analysts rate the stock Buy or Strong Buy.
Earnings per share beat expectations by 72.4% in the latest quarter, reporting 0.50 against 0.29 expected.
Why it could disappoint
Free cash flow over the last twelve months was negative at -$285M, meaning the business spent more cash than it generated.
Return on invested capital of 1.9% and return on equity of 4.8% are both low for the capital tied up in the business.
The stock trades at a forward P/E of 35.8x, against a sector median of 19.8x, leaving little room for disappointment.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
Plain-English pros, cons, and what to watch. Pro feature.
PRO
Ask ACCE
Valuation
INVESTOR
Where ORA's valuation models land
Price
$87.09
Model fair valueConfidence: medium
$49.04
Model
Fair value
Upside
EV/EBITDA comparison
P/E comparison
Create a free account: 5 full stock pages a month, no card.
See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores