Stem, Inc. (STEM) is a Software - Infrastructure company in the Technology sector, currently trading at $10.35. It has a SharesGrow Score of 48/100, indicating a mixed investment profile with 2 out of 7 criteria passed.
SharesGrow calculates the intrinsic value of STEM = $295.04 (+2750.6% from the current price, the stock appears undervalued). Analyst consensus target is STEM = $19 (+78.7% upside).
Valuation: STEM trades at a trailing Price-to-Earnings (P/E) of 0.6 (S&P 500 average ~25).
Financials: revenue is $156M, -11.1%/yr average growth. Net income is $138M, growing at -135.1%/yr. Net profit margin is 88.2% (strong). Gross margin is 35.3% (+26.2 pp trend).
Balance sheet: total debt is $369M with negative equity of -$249M — this means total liabilities exceed total assets. This is a warning sign that may indicate accumulated losses, aggressive share buybacks, heavy debt financing, or aggressive dividend payouts. Companies like McDonald's and Starbucks also carry negative equity due to buybacks and dividends, but investors should assess whether the business generates sufficient cash flow to service its debt and sustain payouts. Current ratio is 0.91 (tight liquidity). Debt-to-assets is 119.3%. Total assets: $309M.
Analyst outlook: 5 / 17 analysts rate STEM as buy (29%) — mixed sentiment.
SharesGrow 7-Criteria breakdown: Value 100/100 (Pass), Growth 15/100 (Fail), Past 25/100 (Fail), Health 0/100 (Fail), Moat 44/100 (Fail), Future 52/100 (Partial), Income 100/100 (Pass).
