Is Stem Stock a Good Investment?
Stem Investment Advice | STEM |
- Examine Stem's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Stem's leadership team and their track record. Good management can help Stem navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Electrical Components & Equipment space and any emerging trends that could impact Stem's business and its evolving consumer preferences.
- Compare Stem's performance and market position to its competitors. Analyze how Stem is positioned in terms of product offerings, innovation, and market share.
- Check if Stem pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Stem's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Stem Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Stem Inc is a good investment.
Sell | Buy |
Strong Sell
Market Performance | OK | Details | |
Volatility | Out of control | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Stem Stock
Researching Stem's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 44.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.63. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Stem Inc recorded a loss per share of 5.23. The entity had not issued any dividends in recent years. The firm had 1:10 split on the July 6, 2011.
To determine if Stem is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Stem's research are outlined below:
| Stem Inc is way too risky over 90 days horizon | |
| Stem Inc has some characteristics of a very speculative penny stock | |
| Stem Inc appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 461.51 M. Net Loss for the year was (140.41 M) with profit before overhead, payroll, taxes, and interest of 5.16 M. | |
| Stem Inc currently holds about 334.89 M in cash with (207.38 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.17, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Latest headline from MacroaxisInsider: Insider Trading |
Stem Quarterly Cost Of Revenue |
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Stem uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Stem Inc. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Stem's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Stem's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Stem's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-02-16 | 2022-12-31 | -0.2 | -0.23 | -0.03 | 15 | ||
2022-08-04 | 2022-06-30 | -0.18 | -0.21 | -0.03 | 16 | ||
2023-05-04 | 2023-03-31 | -0.24 | -0.29 | -0.05 | 20 | ||
2022-11-03 | 2022-09-30 | -0.17 | -0.22 | -0.05 | 29 | ||
2024-10-30 | 2024-09-30 | -0.21 | -0.27 | -0.06 | 28 | ||
2023-08-03 | 2023-06-30 | -0.17 | -0.26 | -0.09 | 52 | ||
2022-05-05 | 2022-03-31 | -0.15 | -0.06 | 0.09 | 60 | ||
2024-02-28 | 2023-12-31 | -0.14 | -0.24 | -0.1 | 71 |
Know Stem's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Stem is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Stem Inc backward and forwards among themselves. Stem's institutional investor refers to the entity that pools money to purchase Stem's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 937.4 K | Davy Asset Management Limited | 2024-09-30 | 856.1 K | Citigroup Inc | 2024-09-30 | 855.5 K | Hsbc Holdings Plc | 2024-09-30 | 828.1 K | Alliancebernstein L.p. | 2024-09-30 | 716.2 K | Kbc Group Nv | 2024-09-30 | 675 K | Two Sigma Investments Llc | 2024-09-30 | 663.1 K | Cohen & Steers Inc | 2024-09-30 | 637.8 K | Wells Fargo & Co | 2024-09-30 | 624.5 K | Blackrock Inc | 2024-09-30 | 11.3 M | Vanguard Group Inc | 2024-09-30 | 8.7 M |
Stem's market capitalization trends
The company currently falls under 'Micro-Cap' category with a current market capitalization of 93.34 M.Market Cap |
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Stem's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.25) | (0.24) | |
| Return On Capital Employed | (0.16) | (0.15) | |
| Return On Assets | (0.09) | (0.10) | |
| Return On Equity | (0.30) | (0.31) |
Determining Stem's profitability involves analyzing its financial statements and using various financial metrics to determine if Stem is a good buy. For example, gross profit margin measures Stem's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Stem's profitability and make more informed investment decisions.
Evaluate Stem's management efficiency
Stem Inc has return on total asset (ROA) of (0.1108) % which means that it has lost $0.1108 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (15.3125) %, meaning that it created substantial loss on money invested by shareholders. Stem's management efficiency ratios could be used to measure how well Stem manages its routine affairs as well as how well it operates its assets and liabilities. As of the 31st of January 2025, Return On Tangible Assets is likely to grow to -0.24. In addition to that, Return On Capital Employed is likely to grow to -0.15. At this time, Stem's Intangible Assets are very stable compared to the past year. As of the 31st of January 2025, Fixed Asset Turnover is likely to grow to 4.87, though Return On Tangible Assets are likely to grow to (0.24).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.47 | 2.59 | |
| Tangible Book Value Per Share | (1.61) | (1.53) | |
| Enterprise Value Over EBITDA | (15.04) | (15.79) | |
| Price Book Value Ratio | 1.63 | 1.55 | |
| Enterprise Value Multiple | (15.04) | (15.79) | |
| Price Fair Value | 1.63 | 1.55 | |
| Enterprise Value | 931.8 M | 826.8 M |
Stem Inc benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Beta 1.651 |
Basic technical analysis of Stem Stock
As of the 31st of January, Stem has the Risk Adjusted Performance of 0.0652, semi deviation of 8.82, and Coefficient Of Variation of 1497.57. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Stem Inc, as well as the relationship between them. Please validate Stem Inc information ratio, as well as the relationship between the potential upside and kurtosis to decide if Stem is priced more or less accurately, providing market reflects its prevalent price of 0.6111 per share. As Stem Inc is a penny stock we also advise to double-check its total risk alpha numbers.Stem's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Stem insiders, such as employees or executives, is commonly permitted as long as it does not rely on Stem's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Stem insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Stem's Outstanding Corporate Bonds
Stem issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Stem Inc uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Stem bonds can be classified according to their maturity, which is the date when Stem Inc has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| STLA 1711 29 JAN 27 Corp BondUS85855CAA80 | View | |
| STLA 2691 15 SEP 31 Corp BondUS85855CAB63 | View | |
| STLA 5625 12 JAN 28 Corp BondUS85855CAD20 | View | |
| STLA 6375 12 SEP 32 Corp BondUS85855CAE03 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View |
Understand Stem's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Stem's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0652 | |||
| Market Risk Adjusted Performance | (1.48) | |||
| Mean Deviation | 9.21 | |||
| Semi Deviation | 8.82 | |||
| Downside Deviation | 10.16 | |||
| Coefficient Of Variation | 1497.57 | |||
| Standard Deviation | 13.82 | |||
| Variance | 190.98 | |||
| Information Ratio | 0.0595 | |||
| Jensen Alpha | 0.9679 | |||
| Total Risk Alpha | (0.57) | |||
| Sortino Ratio | 0.081 | |||
| Treynor Ratio | (1.49) | |||
| Maximum Drawdown | 82.96 | |||
| Value At Risk | (18.29) | |||
| Potential Upside | 28.13 | |||
| Downside Variance | 103.32 | |||
| Semi Variance | 77.78 | |||
| Expected Short fall | (14.14) | |||
| Skewness | 1.62 | |||
| Kurtosis | 4.44 |
| Risk Adjusted Performance | 0.0652 | |||
| Market Risk Adjusted Performance | (1.48) | |||
| Mean Deviation | 9.21 | |||
| Semi Deviation | 8.82 | |||
| Downside Deviation | 10.16 | |||
| Coefficient Of Variation | 1497.57 | |||
| Standard Deviation | 13.82 | |||
| Variance | 190.98 | |||
| Information Ratio | 0.0595 | |||
| Jensen Alpha | 0.9679 | |||
| Total Risk Alpha | (0.57) | |||
| Sortino Ratio | 0.081 | |||
| Treynor Ratio | (1.49) | |||
| Maximum Drawdown | 82.96 | |||
| Value At Risk | (18.29) | |||
| Potential Upside | 28.13 | |||
| Downside Variance | 103.32 | |||
| Semi Variance | 77.78 | |||
| Expected Short fall | (14.14) | |||
| Skewness | 1.62 | |||
| Kurtosis | 4.44 |
Consider Stem's intraday indicators
Stem intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Stem stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Stem time-series forecasting models is one of many Stem's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Stem's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Stem Stock media impact
Far too much social signal, news, headlines, and media speculation about Stem that are available to investors today. That information is available publicly through Stem media outlets and privately through word of mouth or via Stem internal channels. However, regardless of the origin, that massive amount of Stem data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Stem news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Stem relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Stem's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Stem alpha.
Stem Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Stem can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Stem Corporate Directors
| Lisa Troe | Independent Director | Profile | |
| Michael Morgan | Independent Director | Profile | |
| Anil Tammineedi | Independent Director | Profile | |
| Jane Woodward | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Stem Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Electrical Components & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Stem. If investors know Stem will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Stem listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (5.23) | Revenue Per Share | Quarterly Revenue Growth (0.78) | Return On Assets | Return On Equity |
The market value of Stem Inc is measured differently than its book value, which is the value of Stem that is recorded on the company's balance sheet. Investors also form their own opinion of Stem's value that differs from its market value or its book value, called intrinsic value, which is Stem's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Stem's market value can be influenced by many factors that don't directly affect Stem's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Stem's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Stem is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Stem's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.