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Ormat Technologies (Ormat Technologies) Operating Margin %

: 21.98% (As of Dec. 2023)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Ormat Technologies's Operating Income for the three months ended in Dec. 2023 was $53.0 Mil. Ormat Technologies's Revenue for the three months ended in Dec. 2023 was $241.3 Mil. Therefore, Ormat Technologies's Operating Margin % for the quarter that ended in Dec. 2023 was 21.98%.

Warning Sign:

Ormat Technologies Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4.6%.

The historical rank and industry rank for Ormat Technologies's Operating Margin % or its related term are showing as below:

ORA' s Operating Margin % Range Over the Past 10 Years
Min: 20.53   Med: 27.52   Max: 30.92
Current: 20.53


ORA's Operating Margin % is ranked better than
60% of 410 companies
in the Utilities - Independent Power Producers industry
Industry Median: 15.935 vs ORA: 20.53

Ormat Technologies's 5-Year Average Operating Margin % Growth Rate was -4.60% per year.

Ormat Technologies's Operating Income for the three months ended in Dec. 2023 was $53.0 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $170.3 Mil.


Ormat Technologies Operating Margin % Historical Data

The historical data trend for Ormat Technologies's Operating Margin % 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.

* Premium members only.

Ormat Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.98 27.40 25.50 25.37 20.53

Ormat Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % 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 Premium Member Only Premium Member Only Premium Member Only 29.65 28.70 12.44 19.17 21.98

Competitive Comparison

For the Utilities - Renewable subindustry, Ormat Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % Distribution

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

* The bar in red indicates where Ormat Technologies's Operating Margin % falls into.



Ormat Technologies Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Ormat Technologies's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=170.318 / 829.424
=20.53 %

Ormat Technologies's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=53.043 / 241.34
=21.98 %

* 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.


Ormat Technologies  (NYSE:ORA) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Ormat Technologies Operating Margin % Related Terms

Thank you for viewing the detailed overview of Ormat Technologies's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ormat Technologies (Ormat Technologies) Business Description

Traded in Other Exchanges
Address
6140 Plumas Street, Reno, NV, USA, 89519-6075
Ormat Technologies Inc is engaged in the geothermal energy power business. The company is engaged in three business segments: 1) 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 sell the electricity generated. 2) 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 and recovered energy-based power plants. 3) Energy Storage Segment includes owning and operating grid-connected which provide capacity, energy and ancillary services directly to the electric grid.
Executives
Dafna Sharir director C/O AMPAL AMERICAN ISRAEL CORP, 111 ARLOZOROV STREET, TEL AVIV ISREL L3 00000
Isaac Angel officer: CEO Appointee 2099 GATEWAY PLACE, SUITE 600 CA 95110
Doron Blachar officer: CFO 6225 NEIL ROAD, RENO NV 89511
Stanley Stern director C/O THCG, INC, 650 MADISON AVENUE, 21ST FL, NEW YORK NY 10022
Orix Corp 10 percent owner WORLD TRADE CENTER BLDG., SOUTH TOWER, 2-4-1 HAMAMATSU-CHO, MINATO-KU, TOKYO M0 105 5135
Byron G. Wong director 2 TRAILS END, WESTPORT CT 06880
David Granot director 6225 NEIL ROAD, RENO NV 89511
Shimon Hatzir officer: VP, Elect. & Conceptual Engin. 6225 NEIL ROAD, SUITE 300, C/O ORMAT TECHNOLOGIES, INC., RENO NV 89511
Shlomi Argas officer: V.P., Projects 6225 NEIL ROAD, RENO NV 89511
Karin Corfee director 6140 PLUMAS STREET, RENO NV 89519
Michal Marom director 6140 PLUMAS STREET, RENO NV 89519
Dan Falk director 6225 NEIL ROAD, SUITE 300, C/O ORMAT TECHNOLOGIES, INC., RENO NV 89511
Jessica Woelfel officer: General Counsel and CCO 6140 PLUMAS STREET, RENO NV 89519
Mike Nikkel director 6140 PLUMAS STREET, RENO NV 89519
Zvi Krieger officer: VP, Geothermal Enginerring 6225 NEIL ROAD, SUITE 300, C/O ORMAT TECHNOLOGIES, INC., RENO NV 89511