📊 STEM Key Takeaways
Is Stem, Inc.. (STEM) a Good Investment?
STEM faces existential solvency concerns with negative stockholders equity of -249.4M and a working capital deficit (current ratio 0.91x). The company's -35.6% operating margin reveals unsustainable operational losses, while the massive disconnect between -55.7M operating income and +137.8M net income raises serious earnings quality concerns, suggesting reliance on one-time gains rather than operational profitability.
Why Buy Stem, Inc.. Stock? STEM Key Strengths
- Modest revenue growth of 8.1% YoY shows topline resilience
- Gross margin of 38.4% indicates reasonable unit economics despite operational losses
- Positive operating cash flow of 6.9M and cash reserves of 48.9M provide near-term runway
STEM Stock Risks: Stem, Inc.. Investment Risks
- Negative stockholders equity of -249.4M indicates technical insolvency and balance sheet deterioration
- Operating margin of -35.6% reveals the core business is unprofitable and unsustainable
- Working capital deficit (current ratio 0.91x) creates imminent liquidity risk and debt servicing challenges
- Quality of earnings concern: net income of 137.8M contradicts -55.7M operating loss, indicating reliance on non-operational items rather than sustainable profitability
- Total liabilities of 557.9M exceed total assets of 308.9M by 249.4M, creating leverage and refinancing risks
Key Metrics to Watch
- Path to operating profitability and elimination of -35.6% operating margin deficit
- Stockholders equity recovery trajectory and balance sheet stabilization
- Sustainability of reported net income and breakdown of one-time items vs. core operating gains
- Working capital management and current ratio improvement above 1.0x
- Cash burn rate and covenant compliance on existing debt facilities
Stem, Inc.. (STEM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.4% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
STEM Profit Margin, ROE & Profitability Analysis
STEM vs Technology Sector: How Stem, Inc.. Compares
How Stem, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Stem, Inc.. Stock Overvalued? STEM Valuation Analysis 2026
Based on fundamental analysis, Stem, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Stem, Inc.. Balance Sheet: STEM Debt, Cash & Liquidity
STEM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Stem, Inc..'s revenue has grown significantly by 262% over the 5-year period, indicating strong business expansion. The most recent EPS of $-18.05 indicates the company is currently unprofitable.
STEM Revenue Growth, EPS Growth & YoY Performance
STEM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $29.3M | -$23.8M | $-2.84 |
| Q2 2025 | $34.0M | -$25.0M | $-1.79 |
| Q1 2025 | $25.5M | -$25.0M | $-0.15 |
| Q3 2024 | $29.3M | $19.1M | $-0.49 |
| Q2 2024 | $34.0M | $19.1M | $-0.17 |
| Q1 2024 | $25.5M | -$44.8M | $-0.29 |
| Q3 2023 | $99.5M | $19.1M | $-0.22 |
| Q2 2023 | $66.9M | $19.1M | $-0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Stem, Inc.. Dividends, Buybacks & Capital Allocation
STEM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Stem, Inc.. (CIK: 0001758766)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STEM
What is the AI rating for STEM?
Stem, Inc.. (STEM) has an AI rating of STRONG SELL with 87% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STEM's key strengths?
Claude: Modest revenue growth of 8.1% YoY shows topline resilience. Gross margin of 38.4% indicates reasonable unit economics despite operational losses.
What are the risks of investing in STEM?
Claude: Negative stockholders equity of -249.4M indicates technical insolvency and balance sheet deterioration. Operating margin of -35.6% reveals the core business is unprofitable and unsustainable.
What is STEM's revenue and growth?
Stem, Inc.. reported revenue of $156.3M.
Does STEM pay dividends?
Stem, Inc.. does not currently pay dividends.
Where can I find STEM SEC filings?
Official SEC filings for Stem, Inc.. (CIK: 0001758766) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STEM's EPS?
Stem, Inc.. has a diluted EPS of $-9.18.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is STEM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Stem, Inc.. has a STRONG SELL rating with 87% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is STEM stock overvalued or undervalued?
Valuation metrics for STEM: ROE of N/A (sector avg: 22%), net margin of 88.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy STEM stock in 2026?
Our dual AI analysis gives Stem, Inc.. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STEM's free cash flow?
Stem, Inc..'s operating cash flow is $6.9M, with capital expenditures of N/A. FCF margin is 4.4%.
How does STEM compare to other Technology stocks?
Vs Technology sector averages: Net margin 88.2% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.91 (avg: 2.5).