Ormat Technologies (WBO:ORAT) Interest Coverage: 2.01 (As of Mar. 2026) — 11% Below Median


WBO:ORAT Ormat Technologies Inc WBO:ORAT
58 GF Score
Price €96.10
GF Value €89.63
Valuation Fairly Valued
! 8 Warning Signs
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What is Ormat Technologies Interest Coverage?

Ormat Technologies WBO:ORAT +0.10% 58 Interest Coverage is 2.01 as of Mar. 2026, which is 11% below its 10-year median of 2.27. GuruFocus rates WBO:ORAT with a GF Score™ of 58/100 and a GF Value™ of €89.63 (Fairly Valued). The stock has 8 warning signs investors should review. Among 321 Utilities - Independent Power Producers companies, Ormat Technologies ranks worse than 72.27% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ormat Technologies's Operating Income for the three months ended in Mar. 2026 was €78 Mil. Ormat Technologies's Interest Expense for the three months ended in Mar. 2026 was €-39 Mil. Ormat Technologies's interest coverage for the quarter that ended in Mar. 2026 was 2.01. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ormat Technologies's Interest Coverage or its related term are showing as below:

WBO:ORAT' s Interest Coverage Range Over the Past 10 Years
Min: 1.29   Med: 2.27   Max: 3.82
Current: 1.46


WBO:ORAT's Interest Coverage is ranked worse than
72.27% of 321 companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.77 vs WBO:ORAT: 1.46

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Ormat Technologies  (WBO:ORAT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Ormat Technologies Interest Coverage Related Terms


Ormat Technologies Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ormat Technologies's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Ormat Technologies Interest Coverage Chart

Ormat Technologies Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.05 2.12 1.72 1.33 1.29

Ormat Technologies Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.49 0.97 1.14 1.57 2.01

WBO:ORAT vs MWH, CWEN, FRVO: Interest Coverage Comparison

For the Utilities - Renewable subindustry, Ormat Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ormat Technologies Interest Coverage vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Ormat Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ormat Technologies's Interest Coverage falls into.


WBO:ORAT
58GF Score
Ormat Technologies Inc WBO:ORAT
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ormat Technologies Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ormat Technologies's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Ormat Technologies's Interest Expense was €-121 Mil. Its Operating Income was €156 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,021 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*156.056/-121.141
=1.29

Ormat Technologies's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Ormat Technologies's Interest Expense was €-39 Mil. Its Operating Income was €78 Mil. And its Long-Term Debt & Capital Lease Obligation was €2,245 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*78.238/-38.919
=2.01

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.01 mean?
Ormat Technologies (WBO:ORAT) has a Interest Coverage of 2.01 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ormat Technologies and its competitors. This is 11% below median its historical median of 2.27. Over the past decade, Ormat Technologies' Interest Coverage has ranged from 1.29 to 3.82. According to the industry distribution chart, Ormat Technologies ranks #232 out of 321 companies in the Utilities - Independent Power Producers industry, placing it in the top 72.3%.
Is Ormat Technologies' Interest Coverage too high?
Ormat Technologies' current Interest Coverage of 2.01 is 11% below median its 10-year median of 2.27. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 3.82. The Utilities - Independent Power Producers industry median Interest Coverage is 2.77. Ormat Technologies' value of 2.01 is 27.4% below this industry median. Based on the distribution chart, Ormat Technologies ranks #232 out of 321 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Ormat Technologies has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ormat Technologies' Interest Coverage compare to MWH and CWEN?
According to the Utilities - Independent Power Producers industry distribution chart, Ormat Technologies ranks #232 out of 321 companies for Interest Coverage. This places Ormat Technologies in the lower half of its industry. The industry median Interest Coverage is 2.77. Ormat Technologies' value of 2.01 is 27.4% below this benchmark. Historically, Ormat Technologies' own Interest Coverage has ranged from 1.29 to 3.82 over the past decade. While the company's 10-year median is 2.27 vs. the industry median of 2.77, Ormat Technologies has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.77, based on 321 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ormat Technologies's current Interest Coverage of 2.01 is 27.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ormat Technologies and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ormat Technologies's current Interest Coverage is 2.01, which is 11% below median its own 10-year median of 2.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ormat Technologies stock overvalued right now?
Based on GuruFocus' analysis, Ormat Technologies (WBO:ORAT) is currently considered Fairly Valued. The stock's GF Value™ is €89.63, compared to a current price of €96.10 — trading 7.2% above its estimated fair value. The current Interest Coverage is 2.01, which is 11% below median its 10-year median of 2.27 and 27.4% below the Utilities - Independent Power Producers industry median of 2.77. Ormat Technologies' overall GF Score™ is 58/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ormat Technologies (WBO:ORAT), the current Interest Coverage is 2.01 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ormat Technologies (WBO:ORAT) Overvalued in 2026?

Based on GuruFocus' analysis, Ormat Technologies stock appears to be overvalued. The current stock price of €96.10 is trading 7.2% above its estimated GF Value™ of €89.63. GuruFocus considers Ormat Technologies to be Fairly Valued.

Key valuation signals for WBO:ORAT:

  • Interest Coverage: 2.01 (11% below median its 10-year median of 2.27)
  • GF Value™: €89.63 vs. price of €96.10 (7.2% above fair value)
  • GF Score™: 58/100 with 8 warning signs
  • Industry Position: 27.4% below the Utilities - Independent Power Producers median (#232 of 321)

No single metric tells the full story. See the WBO:ORAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ormat Technologies Business Description

Address 6884 Sierra Center Parkway, Reno, NV, USA, 89511-2210
Ormat Technologies Inc is engaged in the geothermal and recovered energy power business. It is engaged in three business segments: the Electricity Segment. where the company develops, builds, owns, and operates geothermal, solar PV, and recovered energy-based power plants in the United States and geothermal power plants in other countries and sells the electricity generated. Product Segment includes designing, manufacturing, and selling equipment for geothermal and recovered energy-based electricity generation and providing services relating to the engineering, procurement, and construction of geothermal & recovered energy-based power plants. Energy Storage Segment includes owning & operating grid-connected which provide capacity, energy, & ancillary services directly to the electric grid.
58GF Score

Get the complete analysis for WBO:ORAT

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€96.10
Price
€89.63
GF Value