📊 STEM Key Takeaways
Is Stem, Inc.. (STEM) a Good Investment?
STEM is technically insolvent with negative stockholders equity of -$266.3M and liabilities exceeding assets. The company is burning cash from operations (-$8.3M quarterly) with only ~4-5 quarters of runway at current rates, while operating margins of -49% and net margins of -65% indicate the business model cannot support current expense structure despite modest revenue growth.
Stem, Inc.. Key Strengths (STEM)
- Revenue growing 8.1% YoY shows market demand for services
- Gross margin of 37.4% indicates reasonable pricing power and product-market fit at gross level
- Maintains $36.6M in cash providing short-term operational flexibility
STEM Stock Risks: Stem, Inc.. Investment Risks
- Negative stockholders equity of -$266.3M indicates technical insolvency and existential solvency risk
- Current ratio of 0.84x and operating cash burn of -$8.3M create acute liquidity crisis with estimated 4-5 quarter cash runway
- Operating margin of -49% and net margin of -65% demonstrate business model failure to control operating expenses despite revenue scale
- Negative interest coverage of -3.0x indicates inability to service debt from operations, requiring asset sales or restructuring
Key Metrics to Watch
- Quarterly operating cash flow and cash runway depletion rate
- Path to operating profitability or signs of restructuring/bankruptcy filing
- Changes in stockholders equity and debt restructuring activities
Stem, Inc.. (STEM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
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 |
|---|---|---|---|
| Q1 2026 | $29.0M | -$18.9M | $-2.22 |
| 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 |
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 grade of D with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STEM's key strengths?
Claude: Revenue growing 8.1% YoY shows market demand for services. Gross margin of 37.4% indicates reasonable pricing power and product-market fit at gross level.
What are the risks of investing in STEM?
Claude: Negative stockholders equity of -$266.3M indicates technical insolvency and existential solvency risk. Current ratio of 0.84x and operating cash burn of -$8.3M create acute liquidity crisis with estimated 4-5 quarter cash runway.
What is STEM's revenue and growth?
Stem, Inc.. reported revenue of $29.0M.
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 $-2.22.
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 grade reflects both perspectives for balanced insights.
What is STEM's fundamental grade?
Based on our AI fundamental analysis in May 2026, Stem, Inc.. has a D grade with 88% confidence. Review the strengths and risks sections above for full context. 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 -65.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is STEM's AI grade for 2026?
Our dual AI analysis gives Stem, Inc.. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is STEM's free cash flow?
Stem, Inc..'s operating cash flow is $-8.3M, with capital expenditures of N/A. FCF margin is -28.7%.
How does STEM compare to other Technology stocks?
Vs Technology sector averages: Net margin -65.3% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.84 (avg: 2.5).