Forensic Analysis · Industrials / Manufacturing / Defense · as of Jun 27, 2026
Terrestrial Energy Inc. /DE/ (IMSR)
A forensic read on Terrestrial Energy Inc. /DE/ built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-70.0
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-4.7%
ROE
$713M
Market cap
Terrestrial Energy Inc. /DE/ earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -70.0, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+236.0%Accruals ratio.Net operating assets grew +236.0% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -13% of net operating assets.
-10%Return on invested capital.Return on invested capital is -10% and rising from -602% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+18.6%/yrShare-count dilution.Diluted share count changed +19% over the last 1 years to FY2025 (+18.6%/yr). The count is GROWING — existing holders are being diluted. That's ~18.6% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2024 has been diluted ~19%.
270% of revStock-based comp load.Stock-based compensation ran 270% of revenue in FY2024 — about $0.01 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-4624.6%
Debt / Equity0.00x
Free Cash Flow$-17.5M
Latest Revenue248357.00
Return on Equity-9.5%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Terrestrial Energy Inc. /DE/:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about IMSR's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown