Stem Inc (STEM) AI Stock Analysis

• Market Cap: $145.15M
• Dividend Yield: N/A
• Average Volume (3M): 284.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.42
• Revenue Growth: -35.61%
• EPS Growth: N/A
• Country: US
• Employees: 569
• Sector: Utilities
• Sector Strength: 65
• Industry: Software - Infrastructure
• EPS (TTM): -2.84
• Shares Outstanding: 8,390,208
• 10 Day Avg. Volume: 159,588
• 30 Day Avg. Volume: 284,500
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.24
• Price to Sales (P/S): 0.67
• P/FCF Ratio: -2.01
• Enterprise Value/Market Cap: 3.25
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 13.66
• Enterprise Value/Ebitda: 3.01
• 1Y Price Target: $19.60
• Price Target Upside: 17.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -4.32
• Revenue Forecast (FY): $151.85M

• Rating: 44 Neutral
• Price Target: $15.50 ▼(-7.19% Downside)

Stem Inc faces significant financial challenges with negative equity and cash flow issues, reflected in a low financial performance score. Technical analysis indicates bearish momentum, and valuation metrics are poor with a negative P/E ratio. Despite positive earnings call highlights, such as revenue growth and strategic shifts, concerns about project revenue and margin compression persist.

Positive Factors

Software-Centric Strategy

Stem's shift to a software-centric strategy has enhanced revenue streams and profitability, indicating a sustainable competitive advantage in energy management.

International Expansion

Expansion into European markets positions Stem to capitalize on global renewable energy trends, potentially increasing market share and revenue diversity.

Positive Adjusted EBITDA

Consistent positive adjusted EBITDA and cash flow generation indicate improving financial health and operational efficiency, supporting long-term growth.

Negative Factors

Financial Instability

Negative equity and high leverage suggest financial instability, which could limit Stem's ability to invest in growth and weather economic downturns.

Declining Cash Flows

Declining cash flows indicate potential liquidity risks, which could hinder Stem's ability to fund operations and strategic initiatives without external financing.

Decreased Project Revenue

A decline in project revenue suggests volatility in Stem's income streams, potentially impacting long-term revenue stability and growth prospects.

Stem Inc Business Overview & Revenue Model

Company Description

Stem Inc (STEM) is a leading provider of energy storage solutions, specializing in advanced artificial intelligence (AI) technology to optimize energy management for commercial and industrial enterprises. The company operates in the renewable energy sector, focusing on integrating energy storage systems with solar and other renewable sources to enhance energy efficiency, reduce costs, and support sustainability initiatives. Stem's core products include its AI-driven energy storage systems, software solutions for energy management, and various services that facilitate the deployment and operation of energy storage projects.

How the Company Makes Money

Stem Inc generates revenue primarily through the sale and installation of energy storage systems, which are marketed to businesses looking to optimize their energy consumption and reduce costs. The company also benefits from software licensing fees for its AI-driven energy management platform, which provides customers with insights and analytics to manage their energy usage effectively. Additional revenue streams include maintenance and support services for installed systems, as well as potential participation in energy markets where they can provide ancillary services like demand response. Significant partnerships with renewable energy developers and utilities enhance their market reach and facilitate project financing, contributing to their overall earnings.

Stem Inc Financial Statement Overview

Summary

Stem Inc's financial statements reveal significant challenges, including negative equity and cash flows, indicating financial instability and liquidity risks. Despite some profitability in the income statement, historical volatility and high leverage are concerning.

Income Statement

Stem Inc shows a mixed performance in its income statement. The TTM data reveals a positive net profit margin of 62.20%, indicating profitability, but this is overshadowed by a negative EBIT margin of -84.71%. Revenue growth is positive at 5.74% TTM, showing some recovery from previous declines. However, historical data indicates volatility with significant losses in prior years, suggesting instability in revenue and profitability.

Balance Sheet

The balance sheet presents a challenging picture with a negative stockholders' equity, leading to a negative debt-to-equity ratio of -1.37 TTM. This indicates financial instability and high leverage. The return on equity is also negative, reflecting poor profitability relative to shareholder investment. The equity ratio is not available due to negative equity, further highlighting financial distress.

Cash Flow

Cash flow analysis shows a concerning trend with negative operating and free cash flows TTM. The free cash flow growth rate is -55.3%, indicating declining cash generation. However, the free cash flow to net income ratio is positive at 1.10, suggesting some efficiency in converting net income to cash. Overall, cash flow management appears weak, with potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	164.95M	144.58M	461.51M	362.98M	127.37M	36.31M
Gross Profit	34.48M	-11.06M	3.67M	33.09M	1.25M	-3.91M
EBITDA	156.59M	-790.40M	-79.17M	-87.68M	-62.99M	-116.99M
Net Income	102.60M	-854.01M	-140.41M	-124.05M	-101.21M	-156.12M
Balance Sheet
Total Assets	362.61M	437.36M	1.36B	1.42B	1.19B	205.85M
Cash, Cash Equivalents and Short-Term Investments	43.12M	56.30M	113.59M	249.98M	920.79M	6.94M
Total Debt	321.65M	542.02M	537.04M	463.05M	346.93M	106.28M
Total Liabilities	597.72M	835.19M	930.30M	869.73M	524.00M	383.26M
Stockholders Equity	-235.11M	-398.37M	426.20M	551.63M	667.83M	-177.41M
Cash Flow
Free Cash Flow	-19.79M	-48.42M	-225.61M	-110.13M	-111.44M	-45.71M
Operating Cash Flow	-16.07M	-36.65M	-207.38M	-106.03M	-101.27M	-33.67M
Investing Cash Flow	-8.35M	-3.52M	135.73M	-543.83M	-185.23M	-12.04M
Financing Cash Flow	-7.58M	-8.44M	90.24M	-9.81M	1.03B	40.29M

Stem Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STEM, the sentiment is Neutral. The current price of 16.7 is below the 20-day moving average (MA) of 16.85, below the 50-day MA of 19.94, and above the 200-day MA of 13.03, indicating a neutral trend. The MACD of -1.11 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STEM.

Stem Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	78 Outperform	$5.28B	16.73	18.22%	0.77%	6.17%	20.86%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENPH	61 Neutral	$3.78B	19.96	20.31%	―	20.97%	226.98%
FLNC	46 Neutral	$3.59B	―	-10.72%	―	-16.15%	-324.40%
ZENA	45 Neutral	$109.04M	-5.55	-100.32%	―	312.20%	―
STEM	44 Neutral	$145.15M	―	―	―	-35.61%	―

Stem Inc Corporate Events

Stem, Inc. Earnings Call: Growth Amid Challenges

Stem, Inc. recently held its earnings call, showcasing a mixed sentiment with notable achievements and some areas of concern. The company reported significant revenue growth and positive adjusted EBITDA, highlighting a successful strategic transformation with a focus on software. However, there were issues such as decreased project revenue, lower bookings, and potential gross margin compression. Despite these challenges, Stem expressed confidence in its refined guidance and international expansion efforts.

Stem, Inc. Reports Strong Q3 2025 Financial Results

Stem, Inc. is a global leader in the energy transition sector, focusing on technology solutions that optimize clean energy assets through its integrated software suite, PowerTrack. The company operates across 55 countries, providing asset monitoring and managed services to maximize the value of energy portfolios.

Stem Inc Issues Press Release with Form 8-K

On October 29, 2025, Stem Inc issued a press release, which was furnished with Form 8-K. The information provided in the release will not be considered ‘filed’ for purposes of Section 18 of the Exchange Act, nor will it be incorporated by reference into any filing under the Securities Act unless specifically referenced.

The most recent analyst rating on (STEM) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Stem Inc stock, see the STEM Stock Forecast page.

Stem Inc Reduces Quorum Requirement for Meetings

On October 15, 2025, Stem, Inc. amended its bylaws to reduce the quorum required for stockholder meetings from a majority to one-third of voting power. This change addresses past difficulties in reaching a quorum due to the dispersed nature of its stockholder base, aiming to prevent additional costs and disruptions from adjourned meetings.

The most recent analyst rating on (STEM) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Stem Inc stock, see the STEM Stock Forecast page.