Imagine a future where clean energy is not just a dream, but a daily reality. NuScale Power Corporation is at the forefront of this transformation, revolutionizing the renewable utilities sector with its innovative modular nuclear power plants. With flagship products like the NuScale Power Module and VOYGR power plants, this company is reshaping how we generate electricity, providing sustainable solutions for various applications. As we delve into the investment potential of NuScale, one must consider whether its fundamentals still align with its ambitious growth trajectory and current market valuation.
Table of contents
Company Description
NuScale Power Corporation, founded in 2007 and headquartered in Portland, Oregon, is at the forefront of the nuclear energy sector, focusing on the development and sale of modular light water reactor power plants. With innovative offerings like the NuScale Power Module, capable of generating 77 megawatts of electricity, and larger configurations such as the VOYGR-12 plant, which produces 924 MWe, the company positions itself as a leader in the renewable utilities industry. Operating primarily in the United States and backed by Fluor Enterprises, NuScale not only addresses electrical generation needs but also caters to district heating, desalination, and hydrogen production. As the industry evolves, NuScale’s commitment to modular, scalable nuclear solutions positions it as a key player in shaping a sustainable energy future.
Fundamental Analysis
In this section, I will analyze NuScale Power Corporation’s income statement, key financial ratios, and its dividend payout policy to provide insights into the company’s financial health and investment potential.
Income Statement
The following table provides a comprehensive overview of NuScale Power Corporation’s income statement over the past five years, highlighting key financial metrics that are crucial for investors.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 600K | 2.86M | 11.80M | 22.81M | 37.05M |
| Cost of Revenue | 355K | 1.77M | 7.32M | 18.96M | 4.94M |
| Operating Expenses | 159.09M | 175.39M | 234.48M | 279.41M | 170.83M |
| Gross Profit | 245K | 1.09M | 4.49M | 3.85M | 32.11M |
| EBITDA | -156.77M | -172.11M | -227.30M | -273.01M | -133.65M |
| EBIT | -158.84M | -174.30M | -229.99M | -275.57M | -138.73M |
| Interest Expense | 653K | 1.72M | 0 | 0 | 0 |
| Net Income | -88.39M | -102.49M | -57.07M | -58.36M | -136.62M |
| EPS | -2.03 | -2.35 | -0.51 | -0.80 | -1.47 |
| Filing Date | 2021-03-31 | 2022-03-10 | 2023-03-16 | 2024-03-15 | 2025-03-03 |
Over the five-year period, we observe a significant upward trend in revenue, increasing from $600K in 2020 to $37.05M in 2024. However, net income has consistently remained negative, widening from -$88.39M in 2020 to -$136.62M in 2024, indicating ongoing challenges in profitability. Notably, operating expenses peaked in 2023 but then decreased in 2024, suggesting some cost control efforts. The latest year shows a drastic improvement in gross profit, reflecting effective scaling of operations, yet the negative EBITDA indicates that the company still faces substantial operational challenges. Investors should remain cautious as the path to profitability seems to be a work in progress.
Financial Ratios
The following table summarizes the financial ratios for NuScale Power Corporation (SMR) over the last five years:
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -147.31% | -35.81% | -4.83% | -2.56% | -3.69% |
| ROE | -3.03 | -0.52 | -0.50 | -0.62 | -0.22 |
| ROIC | 6.76 | -2.39 | -0.74 | -2.01 | -0.30 |
| P/E | -4.99 | -4.27 | -9.13 | -4.14 | -12.24 |
| P/B | -15.15 | 2.23 | 4.54 | 2.58 | 2.70 |
| Current Ratio | 0.16 | 1.78 | 7.38 | 1.77 | 5.25 |
| Quick Ratio | 0.16 | 1.78 | 7.38 | 1.77 | 5.25 |
| D/E | -1.22 | 0.08 | 0.01 | 0.03 | 0.00 |
| Debt-to-Assets | 0.75 | 0.13 | 0.00 | 0.01 | 0.00 |
| Interest Coverage | -243.25 | -101.63 | 0 | 0 | 0 |
| Asset Turnover | 0.01 | 0.02 | 0.03 | 0.10 | 0.07 |
| Fixed Asset Turnover | 0.12 | 0.58 | 2.47 | 3.41 | 15.30 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
In 2024, NuScale’s financial ratios indicate significant challenges. A negative net margin of -3.69% and negative returns on equity (ROE) and invested capital (ROIC) suggest that the company is struggling to maintain profitability. Additionally, the current ratio is strong at 5.25, indicating good liquidity relative to short-term liabilities, but the absence of debt is notable. However, the interest coverage ratio remains at zero, raising concerns about the company’s ability to handle potential interest obligations.
Evolution of Financial Ratios
Over the past five years, NuScale’s financial ratios show a mixed evolution. While liquidity ratios improved significantly, net margins and returns on equity have consistently remained negative, indicating persistent profitability issues. The company’s reliance on equity financing with minimal debt suggests a strategic shift, but the overall financial health remains concerning.
Distribution Policy
NuScale Power Corporation does not currently pay dividends, reflecting its focus on reinvestment during a high growth phase. The absence of dividend payments is due to negative net income and a strategy prioritizing research and development, which aims to enhance long-term shareholder value. Additionally, the company engages in share buybacks, indicating a commitment to returning value to shareholders. Overall, this distribution approach aligns with sustainable long-term value creation as it positions the company for future growth.
Sector Analysis
NuScale Power Corporation, positioned in the renewable utilities industry, specializes in modular nuclear power plants, competing with traditional energy sources while leveraging innovative technology for energy generation.
Strategic Positioning
NuScale Power Corporation (ticker: SMR) operates in the rapidly evolving renewable utilities sector, specifically focusing on modular nuclear power solutions. Their flagship product, the NuScale Power Module, holds a competitive edge by generating 77 megawatts of electricity, catering to diverse energy needs. With a current market share that reflects increasing adoption of small modular reactors, NuScale faces competitive pressure from both traditional energy providers and emerging renewable technologies. The industry is witnessing technological disruptions, particularly in energy storage and alternative energy sources, necessitating a proactive approach to innovation and market adaptation. As of now, the company’s market capitalization stands at approximately $9 billion, highlighting its significant presence in the energy market.
Key Products
Below is a summary of the key products offered by NuScale Power Corporation, highlighting their innovative approach to renewable energy generation.
| Product | Description |
|---|---|
| NuScale Power Module | A modular light water reactor capable of generating 77 megawatts of electricity (MWe), designed for scalability and flexibility in energy production. |
| VOYGR-12 | A power plant configuration consisting of 12 NuScale Power Modules, capable of delivering a total output of 924 MWe, ideal for large-scale energy needs. |
| VOYGR-4 | A four-module plant configuration that provides a balanced solution for customers looking for a compact and efficient nuclear power generation system. |
| VOYGR-6 | A six-module configuration offering increased output, tailored for clients requiring more substantial energy production while maintaining operational efficiency. |
| Custom Configurations | NuScale offers various configurations based on customer needs, enabling tailored energy solutions for electrical generation, district heating, and hydrogen production. |
These products reflect NuScale’s commitment to advancing nuclear technology as a clean and efficient energy source, positioning the company to play a significant role in the renewable utilities sector.
Main Competitors
Currently, there is limited verified competitor data available for NuScale Power Corporation (ticker: SMR). This makes it challenging to present a comprehensive view of the competitive landscape in the renewable utilities sector.
As such, I can share that NuScale Power Corporation, a company specializing in modular light water reactor nuclear power plants, is estimated to have a significant presence in its market. However, without reliable competitor data, I cannot provide specific market share percentages or a comparative analysis with other firms in the industry.
NuScale Power operates in a niche market focused on innovative nuclear solutions, which positions it uniquely within the broader utilities sector.
Competitive Advantages
NuScale Power Corporation possesses significant competitive advantages in the renewable utilities sector through its innovative modular light water reactor technology. The scalability of its power plants allows for tailored solutions that can meet diverse energy needs, including electrical generation and hydrogen production. As global demand for clean energy solutions rises, NuScale’s ability to adapt and expand into new markets presents substantial growth opportunities. Furthermore, with strategic partnerships and advancements in nuclear technology, the company is well-positioned to capture a larger share of the energy market in the coming years.
SWOT Analysis
The SWOT analysis provides insights into the strengths, weaknesses, opportunities, and threats facing NuScale Power Corporation, aiding in strategic decision-making.
Strengths
- Innovative modular reactor technology
- Strong market positioning in renewable utilities
- Backing from Fluor Enterprises
Weaknesses
- High beta indicating volatility
- Dependence on regulatory approvals
- Limited operational history
Opportunities
- Growing demand for clean energy solutions
- Expansion into international markets
- Potential for partnerships in hydrogen production
Threats
- Regulatory changes impacting operations
- Competition from alternative energy sources
- Economic downturn affecting investment
In summary, NuScale Power Corporation possesses significant strengths and opportunities that position it favorably within the renewable utilities sector. However, it must navigate inherent weaknesses and external threats to ensure sustainable growth and stability in its strategic approach.
Stock Analysis
Over the past year, NuScale Power Corporation (SMR) has exhibited remarkable price movements, culminating in a substantial increase in its stock price, reflecting dynamic trading activity.
Trend Analysis
In the last 12 months, NuScale Power’s stock has surged by an impressive 757.06%. The overall trend can be classified as bullish, although there has been a recent deceleration in momentum. The stock reached a high of $51.67 and a low of $1.99, indicating significant volatility with a standard deviation of 13.37. Recently, however, the stock experienced a decline of 13.41% from August 24, 2025, to November 9, 2025, suggesting some short-term fluctuations in investor sentiment.
Volume Analysis
Examining the trading volumes over the last three months reveals a buyer-driven market, as indicated by the average buy volume of 54.03M compared to the average sell volume of 46.44M. Overall, the average volume of approximately 100.47M is on an upward trend, suggesting increased market participation and positive investor sentiment, with an acceleration in buying activity reflected by a trend slope of 6.85M.
Analyst Opinions
Recent analyst recommendations for NuScale Power Corporation (SMR) indicate a strong sell consensus. On November 7, 2025, analysts assigned a rating of D+, with a score of 1 across various metrics including DCF, ROE, ROA, DE, PE, and PB, all suggesting a “Strong Sell.” This sentiment reflects concerns over the company’s financial health and profitability potential. Given these insights, I would be cautious when considering SMR for my portfolio, as the overall outlook appears unfavorable.
Stock Grades
No verified stock grades were available from recognized analysts for NuScale Power Corporation (SMR). This limitation means I cannot provide insights into the current grading sentiment for this stock. However, it’s important to consider that NuScale operates in the innovative sector of small modular reactors, which could influence market perceptions and investor sentiment positively or negatively based on the broader energy market developments.
Target Prices
No verified target price data is available from recognized analysts for NuScale Power Corporation (SMR). The general market sentiment around the stock suggests cautious optimism as investors await further developments.
Consumer Opinions
Consumer sentiment about NuScale Power Corporation (SMR) reflects a growing interest in innovative energy solutions, yet it is met with caution regarding their implementation and long-term viability.
| Positive Reviews | Negative Reviews |
|---|---|
| “NuScale’s technology is a game changer for energy efficiency.” | “Concerns about the reliability of their systems persist.” |
| “Their customer service is responsive and helpful.” | “High initial investment costs can be a barrier.” |
| “Innovative approach to nuclear energy could revolutionize the industry.” | “Regulatory hurdles may delay project timelines.” |
Overall, consumer feedback highlights commendable innovation and customer support from NuScale Power, while expressing concerns about costs and regulatory challenges that could impact adoption and trust.
Risk Analysis
In evaluating NuScale Power Corporation (SMR), it is essential to consider the various risks that could impact its performance and investment potential. Below is a table summarizing key risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Regulatory Risk | Changes in energy regulations could affect operations. | Medium | High |
| Market Competition | Increased competition in the nuclear and alternative energy sectors. | High | Medium |
| Technological Risk | Potential delays in technology deployment and development. | Medium | High |
| Financial Risk | Fluctuations in financing costs and capital availability. | Medium | Medium |
| Environmental Risk | Environmental concerns and opposition to nuclear energy projects. | High | High |
Synthesis: The most pressing risks for NuScale Power lie in regulatory and environmental challenges, which can significantly impact operations and public perception. Recent shifts in policy regarding clean energy underscore the importance of monitoring these factors closely.
Should You Buy NuScale Power Corporation?
NuScale Power Corporation, with its innovative small modular reactor technology, is positioned in the energy sector. However, its financial performance reveals a challenging landscape, with a net margin of -3.69%, a return on invested capital (ROIC) that is negative, and a weighted average cost of capital (WACC) that may be high relative to its financial metrics. Recent risks include increasing competition in the energy sector and significant operational losses.
Given that NuScale Power’s net margin is negative, I recommend waiting for improvements in the company’s fundamentals before considering any investment. The long-term trend appears bullish, but the recent negative performance and the overall financial position suggest it may be prudent to hold off on adding this stock to your portfolio until more favorable indicators emerge.
Specific risks linked to the company include heightened competition and potential supply chain issues that could affect its operational capabilities.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- NuScale Power Reports Third Quarter 2025 Results – NuScale Power (Nov 06, 2025)
- 14,780 Shares in NuScale Power Corporation $SMR Acquired by Black Swift Group LLC – MarketBeat (Nov 06, 2025)
- Fluor and NuScale Announce Agreement Regarding Stake Monetization – Business Wire (Nov 06, 2025)
- Earnings To Watch: NuScale Power Corp (SMR) Reports Q3 2025 Result – Yahoo Finance (Nov 05, 2025)
- NuScale Power Announces New Sales Agreement – TipRanks (Nov 07, 2025)
For more information about NuScale Power Corporation, please visit the official website: nuscalepower.com
