NuScale Power Corp's (SMR, Financial) stock price currently stands at $12.61, witnessing a slight decline of 1.94% today. Despite this drop, the company's stock has seen an impressive growth trajectory throughout 2024, largely driven by growing interest in nuclear energy alternatives.
NuScale Power specializes in small modular nuclear reactors (SMR, Financial) and is strategically positioned to capitalize on the global push to triple nuclear energy capacity by 2050. The company's recent agreements, such as Microsoft's 20-year power purchase deal with Constellation Energy to restart Three Mile Island’s nuclear plant, underscore the increasing reliance on nuclear power as a sustainable energy solution. Additionally, Oracle's plans to utilize SMRs for powering AI data centers further emphasize the growing demand in this sector.
Financially, NuScale Power (SMR, Financial) is showing mixed indicators. Although its Altman Z-Score of 0.91 places it within the distress zone, implying a possibility of bankruptcy, the Piotroski F-Score is low, suggesting poor business operations. However, the company's Beneish M-Score suggests it is unlikely to be a financial manipulator, providing a degree of stability. Its strong financial strength is further highlighted by a comfortable interest coverage ratio.
The U.S. Department of Energy's significant $900 million funding for SMR development and the U.S. Export-Import Bank's $98 million pledge for an SMR project in Romania position NuScale favorably. The company's certified reactor designs and awards from the DOE play a crucial role in meeting nuclear industry demands. Analysts from firms like CLSA and Craig-Hallum have initiated coverage with positive ratings, enhancing investor confidence in the company's long-term prospects, with expectations of profitability by 2028.
Despite current financial warnings, NuScale's market cap stands at approximately $1.19 billion, reflecting substantial investor interest. Investors are keenly watching for the company's third-quarter results, set to be announced on November 7, as they focus on commercialization progress and financial health.
NuScale Power (SMR, Financial) remains a pivotal player in the nuclear sector with its strategic initiatives and collaborations. However, investors should be mindful of its mixed financial indicators while considering its promising position within the energy industry.
