NUSCALE POWER Corp (NYSE: SMR)

Sector: Industrials Industry: Specialty Industrial Machinery CIK: 0001822966
Market Cap 1.90 Bn
P/B 2.29
P/E -4.99
P/S 29.67
ROIC (Qtr) -82.64
Div Yield % 0.00
Rev 1y % (Qtr) 1,635.16
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00
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About

Investment thesis

Bull case

  • Tangible assets of 874.31M provide exceptional 786.25x coverage of deferred revenue 1.11M, showing strong service capability backing.
  • Short-term investments of 284.20M provide solid 6.73x coverage of other current liabilities 42.21M, indicating strong liquidity.
  • Robust tangible asset base of 874.31M provides 3.19x coverage of working capital 274.19M, indicating strong operational backing.
  • Tangible assets of 874.31M provide robust 20.71x coverage of other current liabilities 42.21M, indicating strong asset backing.
  • Cash reserves of 412.69M provide robust 0.93x coverage of current liabilities 445.63M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (282.32M) barely covers its investment activities of (301.38M), with a coverage ratio of 0.94, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (301.38M) provide weak support for R&D spending of 41.36M, which is -7.29x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (282.32M) provides insufficient coverage of deferred revenue obligations of 1.11M, which is -253.89x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (282.32M) shows concerning coverage of stock compensation expenses of 17.70M, with a -15.95 ratio indicating potential earnings quality issues.
  • Free cash flow of (282.51M) provides weak coverage of capital expenditures of 185000, with a -1527.07 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Specialty Industrial Machinery
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEV GE Vernova Inc. 224.93 Bn 194.57 6.14 0.00 Bn
2 ETN Eaton Corp plc 153.13 Bn 38.99 5.75 11.22 Bn
3 PH Parker-Hannifin Corp 135.87 Bn 165.29 12.09 9.87 Bn
4 EMR Emerson Electric Co 111.68 Bn 47.10 4.65 13.41 Bn
5 ITW Illinois Tool Works Inc 86.68 Bn 28.27 5.40 8.97 Bn
6 CMI Cummins Inc 82.13 Bn 28.89 2.44 7.55 Bn
7 AME Ametek Inc/ 53.79 Bn 36.34 7.27 2.28 Bn
8 ROK Rockwell Automation, Inc 43.80 Bn 44.24 5.11 3.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.80 2.28
EV to Cash from Ops. EV/CFO -5.64 37.14
EV to Debt EV to Debt 0.00 34.39
EV to EBIT EV/EBIT -4.22 27.71
EV to EBITDA EV/EBITDA -2.54 25.34
EV to Free Cash Flow [EV/FCF] EV/FCF -5.64 133.36
EV to Market Cap EV to Market Cap 0.84 1.04
EV to Revenue EV/Rev 24.93 39.88
Price to Book Value [P/B] P/B 2.29 6.22
Price to Earnings [P/E] P/E -4.99 143.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.57
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 15.73
Dividend per Basic Share Div per Share (Qtr) 0.00 0.91
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 82.53
Interest Coverage Int. cover (Qtr) 0.00 12.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -262.75 -45.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 253.54 118.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 10.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -372.54 -283.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -220.26 -36.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -369.80 -80.72
EBT Growth (1y) % EBT 1y % (Qtr) -369.80 -120.93
EPS Growth (1y) % EPS 1y % (Qtr) -201.05 -39.22
FCF Growth (1y) % FCF 1y % (Qtr) -81.66 85.55
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2,468.27 0.87
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.62
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.10
Cash Ratio Cash Ratio (Qtr) 0.93 3.01
Current Ratio Curr Ratio (Qtr) 1.62 4.97
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.38
Interest Cover Ratio Int Coverage (Qtr) 0.00 12.34
Times Interest Earned Times Interest Earned (Qtr) 0.00 12.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -589.00 -7,291.27
EBIT Margin % EBIT Margin % (Qtr) -591.09 -7,413.30
EBT Margin % EBT Margin % (Qtr) -591.09 -9,015.79
Gross Margin % Gross Margin % (Qtr) 66.80 -32.61
Net Profit Margin % Net Margin % (Qtr) -594.60 -7,962.06