Stem Inc (STEM) AI Stock Analysis

• Market Cap: $62.79M
• Dividend Yield: N/A
• Average Volume (3M): 290.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: -63.86%
• EPS Growth: -364.20%
• Country: US
• Employees: 569
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): -3.00
• Shares Outstanding: 8,350,000
• 10 Day Avg. Volume: 562,692
• 30 Day Avg. Volume: 290,236
• PEG Ratio: 0.39
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.81
• Enterprise Value/Market Cap: 27.78
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: 67.30
• Enterprise Value/Ebitda: -0.57
• 1Y Price Target: $9.67
• Price Target Upside: 28.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $7.50 ▼(-0.27%Downside)

Stem Inc.'s overall stock score reflects significant financial challenges and bearish technical indicators. Despite strategic restructuring and cost-saving measures highlighted in the earnings call, the company's high leverage and negative cash flows present ongoing risks. Corporate events offer some positive outlook, but the stock remains volatile and undervalued.

Positive Factors

Cost Management

Reduction in force actions should further improve profitability, with annual cost savings of $30 million.

Financial Performance

Stem reported solid results, generating positive operating cash flow for the first time.

Strategic Initiatives

The company's software-centric strategy is beginning to show results, with strong interest in its PowerTrack offering.

Negative Factors

Cash Flow Concerns

There is concern about the company's cash balance, as the year-end finished at $52 million, leaving no room for error.

Financial Guidance

The FY 2025 guidance for Stem, Inc. is considered underwhelming with limited growth potential in software and service revenue.

Stock Market Activity

There is potential for downward pressure on the stock following its planned reverse stock split.

Stem Inc Business Overview & Revenue Model

Company Description

Stem Inc (STEM) is a leading provider of AI-driven clean energy storage solutions and services. The company operates primarily in the renewable energy sector, focusing on optimizing energy usage, reducing carbon footprints, and enhancing grid reliability through its innovative software and energy storage systems. Stem's core product, the Athena software platform, integrates with energy storage hardware to provide real-time energy optimization and management for businesses, utilities, and energy providers.

How the Company Makes Money

Stem Inc generates revenue through the sale and deployment of its energy storage systems, which are integrated with its proprietary Athena software. The company charges its customers for the initial installation and ongoing software-as-a-service (SaaS) subscriptions that enable continuous energy optimization and data analytics. Additionally, Stem enters into strategic partnerships with utility companies and renewable energy developers to expand its market reach and drive further adoption of its solutions. Revenue is also derived from performance-based contracts where Stem earns fees based on the cost savings and efficiency gains delivered to its clients.

Stem Inc Financial Statement Overview

Summary

Stem Inc. faces significant financial challenges with negative net income, deeply negative EBIT and EBITDA margins, high leverage, and negative free cash flow, indicating urgent need for financial restructuring and strategic realignment.

Income Statement

Stem Inc. shows significant challenges in profitability with consistently negative net income and declining gross margins. Revenue growth is volatile, with recent TTM figures showing an increase, but past annual reports indicate fluctuation. EBIT and EBITDA margins are deeply negative, suggesting ongoing operational inefficiencies.

Balance Sheet

The company's balance sheet reveals high leverage with a negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, highlighting financial instability. The equity ratio is negative, reflecting liabilities exceeding assets.

Cash Flow

Cash flow analysis indicates negative free cash flow, with operating cash flow also being negative, suggesting liquidity challenges. Although there is a slight improvement in operating cash flow relative to net income, the free cash flow remains a concern due to high capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	151.63M	144.58M	461.51M	362.98M	127.37M	36.31M
Gross Profit	25.91M	-11.06M	3.67M	33.09M	1.25M	-3.91M
EBITDA	-754.85M	-790.40M	-79.17M	-87.68M	-62.99M	-116.99M
Net Income	-806.71M	-854.01M	-140.41M	-124.05M	-119.50M	-156.12M
Balance Sheet
Total Assets	405.08M	437.36M	1.36B	1.42B	1.19B	205.85M
Cash, Cash Equivalents and Short-Term Investments	58.58M	56.30M	113.59M	249.98M	920.79M	6.94M
Total Debt	539.03M	542.02M	537.04M	463.05M	331.65M	106.28M
Total Liabilities	822.00M	835.19M	930.30M	869.73M	524.00M	383.26M
Stockholders Equity	-417.46M	-398.37M	426.20M	551.63M	667.83M	-177.41M
Cash Flow
Free Cash Flow	-39.27M	-48.42M	-225.61M	-126.90M	-111.44M	-45.71M
Operating Cash Flow	-27.49M	-36.65M	-207.38M	-106.03M	-101.27M	-33.67M
Investing Cash Flow	-11.78M	-3.52M	135.73M	-544.37M	-185.23M	-12.04M
Financing Cash Flow	-14.40M	-8.44M	90.24M	-9.27M	1.03B	40.29M

Stem Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 7.52 is below the 20-day moving average (MA) of 8.78, below the 50-day MA of 9.49, and below the 200-day MA of 9.53, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 is Neutral, 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
YEXT	71 Outperform	$1.01B	―	-15.69%	―	8.38%	-278.88%
CCCS	67 Neutral	$6.33B	676.76	0.46%	―	9.05%	―
PGY	65 Neutral	$1.68B	―	-77.37%	―	25.84%	-248.65%
BLZE	59 Neutral	$297.56M	―	-74.75%	―	21.81%	28.80%
CGNT	51 Neutral	$654.08M	―	-4.06%	―	―	―
Sector *	50 Neutral	AU$1.49B	1.75	-28.24%	3.26%	16.24%	-7.89%
STEM	47 Neutral	$62.79M	―	-6139.13%	―	-63.86%	-364.20%

Stem Inc Corporate Events

Stem Inc Announces New CFO Appointment

On July 2, 2025, Stem, Inc. announced a significant leadership change with the resignation of Mr. Doran Hole as Chief Financial Officer, effective July 17, 2025. Mr. Hole will transition to an advisory role until July 31, 2025, to ensure a smooth handover. Concurrently, Mr. Brian Musfeldt has been appointed as the new CFO, effective July 17, 2025. Mr. Musfeldt brings extensive experience from his previous roles at ikeGPS and Also Energy, Inc., among others. His compensation package includes a base salary, bonuses, and stock options, reflecting the company’s commitment to aligning executive incentives with long-term performance goals.

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.

Stem Inc’s Strategic Exchange Agreement on June 2025

On June 27, 2025, Stem, Inc. entered into a privately negotiated exchange agreement with certain holders of its 2028 and 2030 Green Convertible Senior Notes. The company exchanged a significant amount of these notes and cash for new Senior Secured PIK Toggle Notes due 2030 and warrants for common stock. This strategic financial maneuver is expected to impact the company’s liquidity and capital structure, potentially affecting its market positioning and stakeholder interests.

The most recent analyst rating on (STEM) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Stem Inc stock, see the STEM Stock Forecast page.

Stem Inc Approves 1-for-20 Reverse Stock Split

Stem Inc.’s Board of Directors has approved a reverse stock split at a ratio of 1-for-20 and reduced the total number of authorized shares from 500 million to 250 million, effective June 23, 2025. This move is expected to impact the company’s stock trading and equity incentive plans, with the stock commencing trading on a split-adjusted basis on the New York Stock Exchange on the effective date.

The most recent analyst rating on (STEM) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Stem Inc stock, see the STEM Stock Forecast page.

Stem Inc’s Key Proposals Approved at Annual Meeting

At the 2025 Annual Meeting held on June 4, Stem, Inc.’s stockholders approved several key proposals, including the election of two Class I directors, an amendment to increase shares in the 2024 Equity Incentive Plan by 4,000,000, and a reverse stock split. These decisions are expected to impact the company’s operational flexibility and market positioning positively. Additionally, the stockholders ratified Deloitte & Touche LLP as the independent auditor for 2025, and approved amendments to the company’s Certificate of Incorporation, which include a reduction in the total number of authorized shares.

The most recent analyst rating on (STEM) stock is a Hold with a $0.30 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 on April 29

On April 29, 2025, Stem Inc issued a press release, which was included in their Form 8-K filing. The release is not considered filed for purposes of the Exchange Act or incorporated into any Securities Act filing unless specifically referenced.