Stem Revenue vs. Gross Profit

STEM Stock  USD 0.38  0.02  5.56%   
Taking into consideration Stem's profitability measurements, Stem Inc may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Stem's ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
2010-12-31
Previous Quarter
461.5 M
Current Value
484.6 M
Quarterly Volatility
173 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 11th of December 2024, Price To Sales Ratio is likely to drop to 1.24. In addition to that, Days Sales Outstanding is likely to drop to 132.54. At this time, Stem's Income Tax Expense is very stable compared to the past year. As of the 11th of December 2024, Total Other Income Expense Net is likely to grow to about 41.3 M, though Operating Income is likely to grow to (170.3 M).
For Stem profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Stem to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Stem Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Stem's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Stem Inc over time as well as its relative position and ranking within its peers.
  
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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
1.604
Quarterly Revenue Growth
(0.78)
Return On Assets
(0.11)
Return On Equity
(15.31)
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.
Please note, there is a significant difference between Stem's value and its price as these two are different measures arrived at by different 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.

Stem Inc Gross Profit vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Stem's current stock value. Our valuation model uses many indicators to compare Stem value to that of its competitors to determine the firm's financial worth.
Stem Inc is rated fourth in revenue category among its peers. It also is rated fourth in gross profit category among its peers fabricating about  0.08  of Gross Profit per Revenue. The ratio of Revenue to Gross Profit for Stem Inc is roughly  12.94 . At this time, Stem's Total Revenue is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Stem by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Stem Revenue vs. Competition

Stem Inc is rated fourth in revenue category among its peers. Market size based on revenue of Industrials industry is at this time estimated at about 46.89 Billion. Stem maintains roughly 461.51 Million in revenue contributing less than 1% to equities under Industrials industry.

Stem Gross Profit vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Stem

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
461.51 M
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Stem

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
35.66 M
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

Stem Gross Profit Comparison

Stem is currently under evaluation in gross profit category among its peers.

Stem Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Stem, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Stem will eventually generate negative long term returns. The profitability progress is the general direction of Stem's change in net profit over the period of time. It can combine multiple indicators of Stem, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-42 K-44.1 K
Operating Income-179.3 M-170.3 M
Income Before Tax-140 M-147 M
Net Loss-111.6 M-117.2 M
Net Loss-140.4 M-147.4 M
Income Tax Expense433 K478.5 K
Net Interest Income-12.1 M-12.7 M
Net Loss-138 M-131.1 M
Total Other Income Expense Net39.3 M41.3 M
Interest Income98.2 M87.3 M
Non Operating Income Net Other2.7 M2.9 M
Change To Netincome40.4 M42.4 M
Net Loss(0.90)(0.95)
Income Quality 1.48  1.55 
Net Income Per E B T 1.00  1.12 

Stem Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Stem. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Stem position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Stem's important profitability drivers and their relationship over time.

Use Stem in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Stem position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stem will appreciate offsetting losses from the drop in the long position's value.

Stem Pair Trading

Stem Inc Pair Trading Analysis

The ability to find closely correlated positions to Stem could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Stem when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Stem - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Stem Inc to buy it.
The correlation of Stem is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Stem moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Stem Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Stem can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Stem position

In addition to having Stem in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Restaraunts Hotels Motels
Restaraunts Hotels Motels Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Restaraunts Hotels Motels theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Restaraunts Hotels Motels Theme or any other thematic opportunities.
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When determining whether Stem Inc is a strong investment it is important to analyze Stem's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Stem's future performance. For an informed investment choice regarding Stem Stock, refer to the following important reports:
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You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
To fully project Stem's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Stem Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Stem's income statement, its balance sheet, and the statement of cash flows.
Potential Stem investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Stem investors may work on each financial statement separately, they are all related. The changes in Stem's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Stem's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.