11Mon·

Geothermal energy, BESS and ESG under one roof

Hi. Has anyone here already $ORA (-1.05%) on the list? I find them quite interesting. GEOthermics and renewables and heat recovery. All topics that are doing well alongside the growth of data centers. BESS on top. An established player with a diversified portfolio. The last figures also looked good. 18% increase in sales, 9.3% profit growth. There is a mini dividend at the top.

What do our specialists say about this stock?

@EpsEra
@Tenbagger2024

9 Comments

Tenbagger-Capital@Tenbagger-Capital

11Mon

I actually added it to the Watch last week because of the figures. I think it's exciting, but I'll have to take a closer look.

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Keineui@Keineui

11Mon

@Tenbagger2024 perhaps also something for the 10B or the HQR model from @Liebesspieler

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Liebesspieler@Liebesspieler

11Mon

@Keineui I sent the value through the models once but did not check it in depth. Here is the result:

Valuation according to the 10B model

Ormat Technologies is an established specialist in geothermal energy, energy recovery and storage solutions with around 1.6 GW of installed capacity and annual sales of just under USD 900m. The structural demand for clean base load energy makes Ormat a "shovel manufacturer" in the green energy sector. Organic growth remains manageable at 5-7%, the capital turnover low (ROIC ~8%). Despite technological expertise, the scaling boost for exponential growth is lacking.
Score (10B): 58/100 - Hold (🟡)
→ Established company with stable margins, but no tenbagger potential due to limited momentum and market maturity.

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🔹 Valuation according to the HQR model

In the HQR approach, Ormat impresses with high operating margins, a solid balance sheet structure and a clear positioning in a sustainable niche segment. At the same time, it lacks the typical "hidden quality" characteristics: The company is well known, well covered and is one of the established midcaps in the renewable energy sector.
Score (HQR): 63/100 - Watch (🟡)
→ Qualitatively strong, but no hidden gem - a solid sustainability stock whose quality is already widely recognized.

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Overall verdict: Ormat is a stable quality company that performs well in both models, but stands out neither as a tenbagger candidate nor as a hidden champion. Ideal for long-term quality portfolios - less so for investors looking for under-the-radar opportunities or exponential growth.

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Tenbagger-Capital@Tenbagger-Capital

11Mon

@Liebesspieler
That's what I say.
And what does your 🔮 say about $2GB?

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Liebesspieler@Liebesspieler

11Mon

@Tenbagger2024 Let the crystal ball speak for itself 🔮 (again without much quality assurance ;))

Evaluation according to the 10B model

2G Energy is one of the leading providers of combined heat and power (CHP) plants that run on biogas, natural gas or hydrogen. The company is benefiting structurally from the European energy transition, particularly through decentralization and the trend towards combined heat and power generation. Sales recently rose by around 13%, the EBIT margin was around 8% and the equity ratio of over 45% signals financial solidity. Growth drivers are hydrogen integration and the growing service share, but high competition and investment cycles limit the scaling potential.
Score (10B): 61 / 100 - Hold (🟡)
→ Innovative niche player with stable organic growth, but not a classic tenbagger, as the business model remains capital-intensive and margins are moderate.

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🔹 Valuation according to the HQR model

According to HQR criteria, 2G Energy impresses with sustainable balance sheet quality, solid profitability and a strong market position in a growing segment of energy technology. The share of recurring service revenues is steadily increasing and the operating margin is continuously improving. At the same time, the share remains largely unnoticed outside Germany, with low analyst coverage and low international awareness - a clear plus point for the under-the-radar profile. Volatility is elevated, but the business model offers predictable cash flows.
Score (HQR): 82 / 100 - Buy (🟢)
→ 2G Energy is a hidden champion in the energy sector with a growing service business, strong balance sheet and visible technological expertise - a typical HQR value.

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Overall assessment:
2G Energy combines solid margins with technological expertise and sustainable market positioning. Not a high scaler in the 10B model, but a clear quality stock with under-the-radar character and an attractive long-term structural story in the HQR model.

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Tenbagger-Capital@Tenbagger-Capital

11Mon

@Liebesspieler
Thanks sounds good. The low EbiT margin still bothers me a bit.

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Tenbagger-Capital@Tenbagger-Capital

11Mon

Just had a quick look again.
So a really exciting sector for the future.
But a P/E ratio of 48 and a PEG of over 3, with single-digit earnings growth for next year. That puts me off for the time being.
But of course the order situation could improve again and bring music.
If $2GB goes back above the 200-day line, the share could perhaps be an alternative.
PEG 0.40 , 70 % earnings growth. @EpsEra ??

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Elsa E.@EpsEra

11Mon

@Keineui @Tenbagger2024
Energy is definitely a topic for the future, but it remains to be seen which direction will prevail in the end. Ormat Tech has done well, no question, but the high P/E ratio is currently putting me off. In the event of a stronger correction, an entry would perhaps be interesting. I currently find 2G Energy, @Tenbagger2024 its idea, more exciting as a solid alternative with a better ratio between turnover and valuation. I also see potential in $VUL from Australia, which combines geothermal energy with lithium production. It is also interesting to see what China is currently planning, for example with new salt technologies for energy storage and conversion. There is an exciting article on this from @SAUgut777. Overall, however, I remain cautious on the subject, as much is still speculative.

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Keineui@Keineui

11Mon

Thank you for the quick response and the constructive contributions to the discussion. I will remain invested and continue to monitor developments. Thanks also for the presentation of the alternative positions. I'll take a look at them. I love the community here for this kind of exchange!

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