Fervo Energy Company (FRVO) vs Ormat Technologies, Inc. (ORA)

Fervo Energy Company and Ormat Technologies, Inc. are both Utilities Renewable companies. Ormat Technologies, Inc. is the larger, with a market value of $5.7B against $2.3B — 2.5× the size. Fervo Energy Company has negative trailing earnings, so its P/E is not meaningful; Ormat Technologies, Inc. trades at 42.4×. Ormat Technologies, Inc. has the higher net margin (11.1% vs 0.00%) and the higher return on invested capital (5.61% vs −4.71%). Across the 15 metrics below, Ormat Technologies, Inc. leads on 12 and Fervo Energy Company on 3.

Valuation

Metric FRVO ORA Utilities Renewable median
P/E n/m 42.39 14.42
P/S n/m 4.72 1.78
P/B 0.43 2.07 0.88
Price to free cash flow n/m n/m 11.75
EV/EBITDA 10.16 16.17 10.16
EV/Sales n/m 6.90 3.74
Earnings yield (83.41%) 2.36% (11.66%)
Free cash flow yield (53.85%) (3.72%) (27.02%)

Profitability

Metric FRVO ORA Utilities Renewable median
Gross margin 0.00% 28.44% 40.59%
Operating margin 0.00% 16.66% 0.00%
Net margin 0.00% 11.07% 0.00%
Free cash flow margin 0.00% 27.51% (1.11%)
Return on equity 0.00% 4.97% 0.00%
Return on assets 0.00% 2.09% (0.07%)
Return on invested capital (4.71%) 5.61% 0.00%

Growth

Metric FRVO ORA Utilities Renewable median
Revenue growth (TTM) — 28.55% 16.77%
EPS growth (last fiscal year) (71.25%) (0.98%) 28.57%
Revenue growth, 5-year CAGR — 7.01% 7.01%
Net income growth, 5-year CAGR — 7.71% 0.00%

Health

Metric FRVO ORA Utilities Renewable median
Debt to equity 0.08 0.00 0.37
Current ratio 8.62 0.92 0.98
Net debt to EBITDA 6.21 4.86 3.56

Dividend

Metric FRVO ORA Utilities Renewable median
Dividend yield — 0.51% 3.15%
Payout ratio — 0.22 0.17

Size

Metric FRVO ORA Utilities Renewable median
Market cap 2.30b 5.72b 849.13m

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