Stock Analysis & Valuation NuScale Power Corporation (SMR)

• Previous Close: $17.48
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	31.32	79
Intrinsic value (DCF)	60659.92	347024
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

NuScale Power Corporation (NYSE: SMR) is a pioneering leader in advanced nuclear technology, specializing in small modular reactors (SMRs) designed for scalable, carbon-free energy solutions. Headquartered in Portland, Oregon, NuScale develops and markets the NuScale Power Module, a compact 77 MWe light water reactor, and its VOYGR power plant configurations (VOYGR-4, VOYGR-6, and VOYGR-12), which cater to diverse energy needs, including electricity generation, hydrogen production, and desalination. Founded in 2007 and backed by Fluor Enterprises, NuScale is at the forefront of the global transition to sustainable energy, offering safer, more flexible, and cost-efficient nuclear power alternatives. With a focus on regulatory compliance and innovation, NuScale’s technology is positioned to address growing demand for clean baseload power, particularly in markets prioritizing decarbonization and grid resilience.

Investment Summary

NuScale Power presents a high-risk, high-reward investment opportunity in the emerging SMR nuclear sector. The company’s proprietary technology and first-mover advantage in U.S. regulatory approvals (e.g., NRC certification for its SMR design) are key strengths. However, significant execution risks remain, including project commercialization delays, reliance on government support, and competition from alternative renewables. With negative EPS (-$1.47) and operating cash flow (-$108.7M in FY2023), NuScale’s path to profitability hinges on successful deployment of its VOYGR plants and scaling manufacturing. Investors should weigh its long-term potential against near-term financial volatility and sector-specific headwinds.

Competitive Analysis

NuScale’s competitive advantage lies in its first-to-market regulatory milestones and scalable SMR technology, which offers lower upfront capital costs and enhanced safety features compared to traditional reactors. Its modular design allows for incremental capacity expansion, appealing to utilities and industrial users seeking flexible decarbonization solutions. However, the company faces intense competition from larger nuclear firms (e.g., GE Hitachi) and alternative clean energy providers (e.g., solar/wind + storage). NuScale’s reliance on Fluor’s engineering expertise strengthens its project execution capabilities but exposes it to supply chain risks. While its technology is differentiated, commercialization challenges—such as securing long-term customer contracts and achieving cost parity with renewables—could hinder growth. The lack of operating revenue (only $37M in 2023) underscores its pre-revenue status, making it sensitive to policy shifts and funding availability.

Major Competitors

• General Electric (GE): GE’s nuclear division, notably its BWRX-300 SMR, competes directly with NuScale. GE benefits from global scale, existing customer relationships, and diversified energy offerings. However, NuScale’s design is further along in U.S. regulatory approval, giving it a timing edge.
• BWX Technologies (BWXT): BWXT specializes in nuclear components and microreactors, targeting military and niche commercial applications. While less focused on utility-scale SMRs, its government contracts provide stable revenue—a contrast to NuScale’s purely commercial model.
• NextEra Energy (NEE): NextEra dominates U.S. renewables (wind/solar) and could indirectly pressure NuScale by offering cheaper, faster-to-deploy alternatives. However, NuScale’s baseload capability fills a gap NextEra cannot address with intermittent sources.
• Fluor Corporation (FLR): Fluor (NuScale’s parent) provides engineering support but also partners with other nuclear firms, creating potential conflicts. Its expertise aids NuScale’s execution but doesn’t eliminate technology risks.