Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Ormat Technologies

(

ORA

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ormat Technologies as such a stock due to the following factors:

  • ORA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.6 million.
  • ORA has traded 50,256 shares today.
  • ORA is down 3.5% today.
  • ORA was up 7.3% yesterday.

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More details on ORA:

Ormat Technologies, Inc. is engaged in the geothermal and recovered energy power business worldwide. The company operates in two segments, Electricity and Product. The stock currently has a dividend yield of 1%. ORA has a PE ratio of 27.6. Currently there are no analysts that rate Ormat Technologies a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Ormat Technologies has been 177,900 shares per day over the past 30 days. Ormat has a market cap of $1.5 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.92 and a short float of 10% with 5.10 days to cover. Shares are up 28.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ormat Technologies as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ORMAT TECHNOLOGIES INC's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ORMAT TECHNOLOGIES INC increased its bottom line by earning $1.18 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($1.45 versus $1.18).
  • The gross profit margin for ORMAT TECHNOLOGIES INC is currently lower than what is desirable, coming in at 28.23%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.67% trails that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Independent Power Producers & Energy Traders industry. The net income has decreased by 14.5% when compared to the same quarter one year ago, dropping from $8.16 million to $6.98 million.

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