Stem, Inc. Fundamental Analysis (NYSE: STEM)
Stem, Inc. (NYSE: STEM) shows moderate financial fundamentals with a PE ratio of -0.28, profit margin of -49.37%, and ROE of 28.62%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 8.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze STEM's fundamental strength across five key dimensions:
Efficiency Score
WeakSTEM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSTEM trades at attractive valuation levels.
Growth Score
ModerateSTEM shows steady but slowing expansion.
Financial Health Score
ModerateSTEM shows balanced financial health with some risks.
Profitability Score
ModerateSTEM maintains healthy but balanced margins.
Key Financial Metrics
Is STEM Expensive or Cheap?
P/E Ratio
STEM trades at -0.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, STEM's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Stem, Inc. at -0.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -144.47 times EBITDA. This is generally considered low.
How Well Does STEM Make Money?
Net Profit Margin
For every $100 in sales, Stem, Inc. keeps $-49.37 as profit after all expenses.
Operating Margin
Core operations generate -30.11 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.62 in profit for every $100 of shareholder equity.
ROA
Stem, Inc. generates $-26.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Stem, Inc. generates limited operating cash flow of $12.29M, signaling weaker underlying cash strength.
Free Cash Flow
Stem, Inc. produces free cash flow of $6.13M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.64 in free cash annually.
FCF Yield
STEM converts 25.31% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-0.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
-0.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.36
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
-0.26
vs 25 benchmark
ROCE
Return on capital employed
-0.26
vs 25 benchmark
How STEM Stacks Against Its Sector Peers
| Metric | STEM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -0.28 | 19.13 | Better (Cheaper) |
| ROE | 28.62% | 1041.00% | Weak |
| Net Margin | -49.37% | -513.00% (disorted) | Weak |
| Debt/Equity | -1.36 | 1.73 | Strong (Low Leverage) |
| Current Ratio | 0.83 | 1.81 | Weak Liquidity |
| ROA | -26.12% | 496.00% | Weak |
STEM outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Stem, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3.39%
Industry Style: Defensive, Dividend, Income
GrowingEPS CAGR
121.20%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
104.90%
Industry Style: Defensive, Dividend, Income
High Growth