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STEMStem, Inc.
$7.92$67M
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  4. Financial Ratios

Stem, Inc. (STEM) Financial Ratios

Latest Ratios: P/E Ratio -0.9x · EV/EBITDA N/A · ROE N/A. (2018–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

STEM Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Market Cap$67M$128M$97M$604M$1.4B$2.0B$820M——
Enterprise Value$387M$447M$583M$1.0B$1.7B$1.6B$919M——
P/E Ratio →-0.86————————
P/S Ratio0.430.820.671.313.7815.7222.58——
P/B Ratio———1.412.483.00———
P/FCF9.8318.62———————
P/OCF9.8318.62———————

P/E links to full P/E history page with 30-year chart

STEM EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
EV / Revenue—2.864.032.244.8112.5725.31——
EV / EBITDA—————————
EV / EBIT—2.76———————
EV / FCF—65.22———————

STEM Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Gross Margin38.4%38.4%-7.6%0.8%9.1%1.0%-10.8%-18.6%-37.8%
Operating Margin-35.6%-35.6%-580.6%-38.9%-36.1%-65.2%-136.0%-272.6%-0.1%
Net Profit Margin88.2%88.2%-590.7%-30.4%-34.2%-79.5%-430.0%-338.5%-0.1%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
ROE——-5920.8%-28.7%-20.3%-41.3%——-48.3%
ROA36.9%36.9%-95.2%-10.1%-9.5%-14.5%-79.3%-63.0%-1.7%
ROIC-52.6%-52.6%-133.1%-15.1%-16.5%-66.0%-172.1%-59.2%-19.0%
ROCE-22.0%-22.0%-118.7%-15.9%-11.6%-14.8%-105.0%-121.6%-48.4%

STEM Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Debt / Equity———1.260.840.52——10.38
Debt / EBITDA————————0.04
Net Debt / Equity———1.010.68-0.60——0.91
Net Debt / EBITDA————————0.00
Debt / FCF—46.60———————
Interest Coverage6.786.78-45.67-8.35-12.30-4.82-6.50-3.79—

STEM Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Current Ratio0.910.911.061.882.0011.640.260.260.34
Quick Ratio0.860.860.981.781.9611.380.150.23-3.97
Cash Ratio0.440.440.440.450.9410.470.040.120.34
Asset Turnover—0.510.330.340.260.110.180.0914.60
Inventory Turnover21.0021.0014.2517.1739.395.551.935.814.83
Days Sales Outstanding—89.58149.86239.57224.54177.42137.68137.6477.86

STEM Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Dividend Yield—————————
Payout Ratio—————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018
Earnings Yield—————————
FCF Yield10.2%5.4%———————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%——
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%——
Shares Outstanding—$8M$8M$8M$8M$5M$2M$2M$2M

Key Metrics

Growth RegimeContracting
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

Liquidity and solvency pressure

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Persistent Erosion of Invested Capital

According to historical financial data, Stem's ROIC has remained deeply negative, bottoming out at -79.1% in 2024Q2, which suggests that the company has struggled to generate any meaningful return on the capital deployed during its aggressive expansion phase and subsequent pivot toward software-only services.

The consistent failure to achieve positive returns on invested capital indicates that the underlying business model has yet to reach the scale necessary to cover its cost of capital. Investors should monitor whether the recent shift toward software-only contracts can eventually reverse this trend, as current figures suggest a significant destruction of shareholder value.

Working Capital Inefficiencies and Delays

As reported in recent quarterly filings, the company's cash conversion cycle has been highly volatile, peaking at 888 days in 2024Q1, which highlights significant challenges in managing receivables and inventory turnover during the transition away from hardware-heavy project deployments toward a more service-oriented revenue model.

The extreme fluctuations in DSO and CCC suggest that Stem remains highly vulnerable to project commissioning delays and customer payment cycles. This inefficiency in working capital management appears to be a structural hurdle that exacerbates the company's ongoing liquidity constraints.

Liquidity Window Nearing Critical Threshold

Based on the latest quarterly data, Stem's current ratio has deteriorated to 0.84 in 2026Q1, down from 1.88 in 2023Q4, indicating that the company's ability to cover short-term obligations with existing liquid assets has become increasingly strained as cash reserves continue to dwindle.

The decline in the current ratio suggests that the company is operating with a narrowing margin of safety, leaving little room for error in its operational execution. This trend warrants close investigation, as it may necessitate further dilutive financing to sustain operations if cash burn is not curtailed.

Misleading Nature of Headline Multiples

As highlighted in recent SEC filings, the P/S ratio of 0.40 may lead investors to incorrectly perceive the stock as undervalued, failing to account for the fact that the company's revenue base is rapidly contracting while operating losses remain persistent and deeply negative.

The P/S ratio is particularly misapplied here because it ignores the quality and sustainability of the revenue stream, which is currently undergoing a painful transition. Analysts should instead focus on the conversion of backlog to high-margin software revenue and the company's ability to achieve cash flow positivity, rather than relying on top-line valuation multiples.

Download Financial Ratios Data

Includes 30+ ratios · 8 years · Updated daily

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STEM — Frequently Asked Questions

Quick answers to the most common questions about buying STEM stock.

What is Stem, Inc.'s P/E ratio?

Stem, Inc.'s current P/E ratio is -0.9x. This places it at the 50th percentile of its historical range.

Is STEM stock overvalued?

Based on historical data, Stem, Inc. is trading at a P/E of -0.9x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Stem, Inc.'s profit margins?

Stem, Inc. has 38.4% gross margin and -35.6% operating margin.