Stem, Inc. (STEM) AI Stock Analysis

Stem, Inc. operates as a provider of digitally connected and intelligent energy storage networks, serving customers across the United States and globally. The company sources energy storage hardware from original equipment manufacturers and pairs it with Athena, its proprietary artificial intelligence platform. Athena integrates battery hardware with software-enabled services to automate and optimize power usage in real time for commercial and industrial enterprises, independent power producers, renewable project developers, utilities, and grid operators. Stem also provides support services, including system design, engineering, supply chain management, warranty and preventive maintenance management, operation reporting, and program enrollment.

Between FY2020 and FY2025, Stem grew its revenue at a 5-year compound annual growth rate of 33.9%. Annual revenue rose from $127.4M in FY2021 to $461.5M in FY2023, before falling 68.7% to $144.6M in FY2024 alongside a net income of -$854.0M. In FY2025, revenue increased 8.1% to $156.3M with gross margin rising to 38.4%, generating net income of $137.8M despite an operating margin of -35.6%. For the trailing twelve months ended June 30, 2026, revenue totaled $148.0M with a profit margin of -49.4% and an operating margin of -24.1%, while quarterly revenue declined 12.3% year-over-year.

As of June 30, 2026, Stem had $38.4M in cash and short-term investments against total debt of $366.4M, resulting in net debt of $328.0M. The company reported a current ratio of 0.83, total assets of $279.8M, and negative shareholders' equity of -$270.0M. In FY2025, operating cash flow and free cash flow were both $6.9M, while capital expenditures were $6.6M. Over the preceding five years, Stem's share count increased by 25.9%.

Stem's stock closed at $3.48 on October 16, 2026, slightly above its 52-week low of $3.46 and down 86.6% over the trailing 12 months, trailing the S&P 500 return of 16.8%. The company trades at a price-to-sales multiple of 0.2x, below the 2.4x median of its US-listed Utilities peers. Its enterprise value-to-revenue multiple sits at 2.2x, while its enterprise value-to-EBITDA ratio is 155.1x, compared to the US-listed Utilities peer median of 12.1x.

Wall Street coverage includes 1 Strong Buy and 5 Hold ratings, with no Buy, Sell, or Strong Sell recommendations. The analyst mean price target is $6.85, representing a 96.8% premium over the last close of $3.48. Consensus forecasts call for FY2026 revenue of $149.1M with an EPS of -$6.37, followed by FY2027 revenue of $172.1M and EPS of -$5.78. Stem beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 5, 2026.

This page is an AI-written research summary of Stem, Inc. (STEM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: STEM income statement, STEM balance sheet, STEM key metrics, STEM analyst forecast, STEM chart. See the STEM stock overview for the latest quote and news.