Stem, Inc (STEM) Fair Value & Analysis

Utilities · US · Market cap $72.2M

A solid business, screening 27% undervalued on our models.

What matters now

• The model range is unusually wide ($5.14 to $14.33). The outcome hinges heavily on assumptions, so read the point estimate with caution.
• Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $4.95 – $740.00 · fair‑value band $5.14 – $14.33 · the $5.88 price screens below the $7.49 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Stem, Inc (STEM) currently trades at $5.88, while our model-based Fair Value estimate is $7.49, implying the stock looks roughly 27.3% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Utilities sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Stem, Inc generated revenue of $153M at a net margin of 94.2%. Revenue declined 10.8% year over year. Net debt stands at $320M. Fundamentals as of Jul 18, 2026

Our scenario range runs from $5.14 (bear case) to $14.33 (bull case); at $5.88, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Utilities peers we cover trades at -30% fair-value upside, at 27%, STEM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth Earnings ($14.00) versus Multiples ($0.6938). Highest evidence: Growth-Adj P/E (68).

Key figures & financial health

Quality Score breakdown

About the company

Stem, Inc. engages in the development, deployment, and operation of clean energy assets in the United States and internationally. The company offers OEM energy storage systems, and edge hardware devices and solutions.

Full company description

Stem, Inc. engages in the development, deployment, and operation of clean energy assets in the United States and internationally. The company offers OEM energy storage systems, and edge hardware devices and solutions. It also provides PowerTrack, an integrated suite of software and solutions for solar, storage, and hybrid assets, including software, energy management system, supervisory control and data acquisition, power plant controller, logger, and optimizer. In addition, the company offers energy optimization software, asset management software, and advisory services; managed services, including the design, procurement, commissioning, operation, and optimization of energy storage and hybrid systems; and professional services to support solar and storage projects, as well as the sale of project assets. It serves developers, asset owners, engineering, procurement and construction firms, distributors, commercial and industrial customers, utilities, and independent power producers. Stem, Inc. was incorporated in 2009 and is headquartered in Houston, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Stem, Inc reported revenue of $156M in FY2025 versus $127M in FY2021, a compound +5.2%/yr. Reported net income was $138M in FY2025.

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Peer Group

Utilities - Renewable · 220 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.