

NuScale Power (SMR) does not appear to be a good investment at this time. Here's why:
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High Valuation Metrics: The stock has a high P/E ratio of -34.04, a high P/S ratio of 394.74, and a Price to Book Ratio of 16.831. These figures suggest that the stock is overvalued relative to its earnings, sales, and book value, which are not favorable indicators for an investment.
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Negative Net Fund Flow: There was a net fund outflow of $615,156.4 on the latest available date2, which indicates that investors are pulling money out of the stock rather than investing in it, a bearish signal.
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Dividend Yield and Stock Price Movement: The dividend yield is not provided, but the stock has experienced a significant price increase, with an 11.68% interval percentage change and 173.87 million shares of interval trading volume3. While this could be seen as positive, it may have already been factored into the stock price, and high volatility can also imply higher risk.
- Company's Financial Performance: NuScale Power is yet to turn a profit, with the company losing about $0.80 per share last year4. The company's financial performance is not yet strong enough to support investment.
- Market Sentiment and Analysts' Views: There are concerns about the company's profitability and sustainability, as indicated by the short report from Iceberg Research5, and analysts have set a relatively low average price target of $7.50, with a high forecast of $10.00 and a low forecast of $4.506. This suggests that analysts do not see significant upside potential in the near term.
- Historical Performance: NuScale Power has not delivered market-beating returns for investors who bought and held shares since its debut on the public markets7. This lack of historical performance is a negative factor for potential investors.
In conclusion, while NuScale Power has some positive aspects, such as its innovative approach to energy production and its recent contract, the company's high valuation metrics, negative net fund flow, lack of profitability, and mixed analyst sentiment suggest that it is not a good investment at this time. Investors should exercise caution and consider these factors before making an investment decision.
