Stem Inc (STEM) AI Stock Analysis

• Market Cap: $142.97M
• Dividend Yield: N/A
• Average Volume (3M): 174.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.27
• 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: 165,407
• 30 Day Avg. Volume: 174,251
• 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: 2.97
• Enterprise Value/Revenue: 2.58
• Enterprise Value/Gross Profit: 12.33
• Enterprise Value/Ebitda: 2.72
• 1Y Price Target: $19.60
• Price Target Upside: 15.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -7.93
• Revenue Forecast (FY): $165.68M

• Rating: 51 Neutral
• Price Target: $16.50 ▼(-3.17% Downside)

Stem Inc's overall stock score is primarily impacted by its financial instability and poor valuation metrics. However, positive developments from the earnings call and the dismissal of a legal case provide some optimism. The technical analysis suggests potential short-term recovery, but long-term sustainability remains a concern.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion.

Software-Centric Strategy

A successful software-centric strategy enhances recurring revenue streams and profitability, strengthening the business model.

Legal Risk Reduction

The dismissal of the lawsuit reduces legal risks and potential costs, allowing management to focus on strategic growth initiatives.

Negative Factors

Financial Instability

Negative equity and cash flows highlight financial instability, posing risks to long-term sustainability and operational flexibility.

Decreased Project Revenue

Decreased project revenue suggests challenges in maintaining growth momentum and could impact future profitability.

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, affecting long-term stability.

Stem Inc Business Overview & Revenue Model

Company Description

Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. It offers energy storage systems sourced from original equipment manufacturers (OEMs). The company also provides Athena, an artificial intelligence platform, which offers battery hardware and software-enabled services to operate the energy storage systems. In addition, it offers system design and engineering services, supply chain management, energy storage value stream optimization, warranty and preventive maintenance plan management, operation and maintenance reporting, and program enrollment and incentive management services. The company serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. Stem, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

How the Company Makes Money

Stem Inc generates revenue primarily through the sale and deployment of its energy storage systems and software solutions. The company earns money by providing energy storage hardware, which is often complemented by its proprietary software that enables clients to optimize energy consumption and storage. Additionally, Stem engages in power purchase agreements (PPAs) and long-term contracts with clients, ensuring a steady revenue stream from ongoing services. Significant partnerships with utility companies and other energy providers further enhance its revenue potential by facilitating access to broader markets and enabling collaborative projects that drive adoption of its technologies.

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 a positive net profit margin, historical volatility and high leverage raise concerns about long-term sustainability.

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	-235.69M	-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: Negative
• Last Price: 17.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STEM, the sentiment is Negative. The current price of 17.04 is below the 20-day moving average (MA) of 17.23, below the 50-day MA of 17.45, and above the 200-day MA of 14.07, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 77.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STEM.

Stem Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	79 Outperform	$5.80B	18.50	18.22%	0.67%	6.17%	20.86%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ENPH	64 Neutral	$4.64B	24.52	20.31%	―	20.97%	226.98%
FLNC	55 Neutral	$3.87B	-49.49	-10.72%	―	-16.15%	-324.40%
STEM	51 Neutral	$142.97M	―	―	―	-35.61%	―
ZENA	51 Neutral	$136.79M	-6.96	-100.32%	―	312.20%	―

Stem Inc Corporate Events

Stem Inc. Securities Class Action Dismissed With Prejudice

On December 17, 2025, the U.S. District Court for the Northern District of California dismissed with prejudice all claims in a putative securities class action against Stem, Inc. and several of its former officers, directors and employees, ending the federal securities lawsuit captioned In re Stem, Inc. Sec. Litig., Case No. 23-CV-02329-MMC. The ruling closes a significant legal overhang for the company by preventing the plaintiffs from refiling these claims, potentially improving Stem’s risk profile and reducing prospective litigation-related costs and distractions for management and shareholders.

The most recent analyst rating on (STEM) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Stem Inc stock, see the STEM Stock Forecast page.

Stem Inc Announces New Chief Accounting Officer

On December 11, 2025, Stem, Inc. announced that Chief Accounting Officer Mr. Rahul Shukla will step down on December 19, 2025, with a separation agreement being negotiated. The board has appointed Mr. Jeffrey Cabot as the new Chief Accounting Officer, effective January 5, 2026. Mr. Cabot, who has extensive experience in similar roles at Oak View Group, Air Methods Corporation, and Sonoco Products Company, will receive a comprehensive compensation package, including a base salary, equity awards, and incentive bonuses. This leadership change is expected to impact the company’s financial operations and strategic direction.

The most recent analyst rating on (STEM) stock is a Hold with a $22.50 price target. To see the full list of analyst forecasts on Stem Inc stock, see the STEM Stock Forecast page.

Stem Inc Expands Board, Appoints CEO as Director

On December 1, 2025, Stem Inc. expanded its Board of Directors from seven to eight members and appointed its CEO, Arun Narayanan, as a Class I Director. This strategic move, recommended by the Nominating, Governance and Sustainability Committee, aims to strengthen the company’s leadership without additional compensation for Mr. Narayanan, indicating a focus on governance and sustainability.

The most recent analyst rating on (STEM) stock is a Hold with a $15.50 price target. To see the full list of analyst forecasts on Stem Inc stock, see the STEM Stock Forecast page.

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.