Stem Inc. Class A Common Stock (STEM)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses with consistent earnings and honest balance sheets. Stem operates in renewable energy storage and software, but its filed numbers show a fragile enterprise. In fiscal Q2 2026, the quarter ended June 30, 2026, revenue was $33.7 million and net loss was $14.4 million, or diluted EPS -$1.58. In fiscal Q1 2026, the quarter ended March 31, 2026, revenue was $29.0 million and net loss was $18.9 million. Revenue rose sequentially from $29.0 million to $33.7 million, but fiscal Q2 2025, the quarter ended June 30, 2025, had revenue of $38.4 million and net income of $202.5 million, with diluted EPS of -$1.79—a contradiction that demands caution. For full fiscal 2025, the year ended December 31, 2025, revenue was $156.3 million and net income was $137.8 million, while diluted EPS was -$9.18; fiscal 2024, the year ended December 31, 2024, had revenue of $144.6 million and a net loss of $854.0 million. The computed Lynch category is TURNAROUND because it returned to profit after a loss within the last three years. Still, the Altman Z-score is -7.63 and ROCE is -5.30%, which do not describe financial strength. At the $4.00 close on 2026-10-13, market cap was $38.5 million; the FairStock P/E is -0.46 and EV/EBITDA is 155.88, so earnings-based valuation is unsupportive. Trailing free cash flow of $7.1 million gives an 18.6% FCF yield, and the Piotroski F-score is 5/9. The 52-week range of $3.70-$30.00 shows extreme volatility. I see no clear moat. This is a speculative turnaround, not a stable value.

In plain English: Stem is a small clean-energy company that sells energy storage systems and software. The business looks weak: it lost $14.4 million in the quarter ended June 30, 2026, and revenue fell from the same quarter a year earlier, though it did report a full-year profit for 2025. At $4.00, the price looks very low against the cash it generated over the past year, but continuing losses and a very high price compared with the profit it earns from operations make it hard to call it a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer