Terrestrial Energy Inc. (IMSR) vs NorthWestern Corporation (NWE)

Terrestrial Energy Inc. and NorthWestern Corporation are both Utilities Regulated Electric companies. NorthWestern Corporation is the larger, with a market value of $4.2B against $464.0M — 9.0× the size. Terrestrial Energy Inc. has negative trailing earnings, so its P/E is not meaningful; NorthWestern Corporation trades at 24.8×. NorthWestern Corporation has the higher net margin (10.1% vs 0.00%) and the higher return on invested capital (3.13% vs −296.3%). Across the 13 metrics below, NorthWestern Corporation leads on 10 and Terrestrial Energy Inc. on 3.

Valuation

Metric IMSR NWE Utilities Regulated Electric median
P/E n/m 24.76 18.84
P/S n/m 2.50 2.52
P/B 1.62 1.46 1.63
Price to free cash flow n/m n/m 36.22
EV/EBITDA n/m 13.26 11.82
EV/Sales n/m 4.55 4.58
Earnings yield (8.89%) 4.04% 5.30%
Free cash flow yield (5.71%) (4.54%) (5.06%)

Profitability

Metric IMSR NWE Utilities Regulated Electric median
Gross margin — 74.48% 66.28%
Operating margin 0.00% 18.84% 21.79%
Net margin 0.00% 10.13% 12.94%
Free cash flow margin 0.00% (11.36%) (11.51%)
Return on equity (26.46%) 5.94% 9.75%
Return on assets (13.36%) 2.04% 2.75%
Return on invested capital (296.34%) 3.13% 3.87%

Growth

Metric IMSR NWE Utilities Regulated Electric median
Revenue growth (TTM) — 10.69% 7.43%
EPS growth (last fiscal year) (105.16%) (19.45%) —
Revenue growth, 5-year CAGR — 6.09% 6.75%
Net income growth, 5-year CAGR — 3.13% 6.44%

Health

Metric IMSR NWE Utilities Regulated Electric median
Debt to equity 0.00 1.21 1.53
Current ratio 44.53 0.83 0.81
Net debt to EBITDA 13.60 5.61 5.25

Dividend

Metric IMSR NWE Utilities Regulated Electric median
Dividend yield — 5.44% 4.33%
Payout ratio — 0.85 0.66

Size

Metric IMSR NWE Utilities Regulated Electric median
Market cap 464.02m 4.19b 22.90b

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