Stem

STEM

Renewable Utilities · Utilities

Price

$5.70

+0.05 (+0.88%)

Market Cap

$51.1M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Mixed

Cash Flow

Weak

Stability

Data not available

Valuation

Data not available

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Share count rising — dilution

+60.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 5.3M (2021) → 8.5M (2025)

Winston Score History

The full picture

Stem, Inc. helps businesses store and manage electricity using large batteries and smart software. Its main product is an AI-powered software platform called Athena, which controls battery storage systems for solar farms, commercial buildings, and energy developers. The company operates in the clean energy industry, connecting hardware from battery manufacturers with its own software to help customers save money on electricity and sell power back to the grid.

Stem makes money by selling long-term software contracts tied to battery storage projects, plus some revenue from helping customers buy and install the hardware itself. It operates mainly in the United States but has some international projects. With a market cap of around $100 million and an operating loss of roughly 33 cents on every dollar of revenue, the company is not yet profitable. The biggest risk Stem faces is that its hardware-linked business model has thin margins, and slowing growth in utility-scale solar and storage projects could make it harder to reach profitability.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-12.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-106.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$35M/ year

↓ Declining (-31% vs prior year)

22.6% of revenue

1.5x the sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

3.3%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~10 years

$38M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$38M cash & investments at current burn rate

Revenue declining

Stem's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

41.3%

Healthy — 41.3% gross margin

Profit after running costs

Operating Margin

-32.6%

Losing money on operations — -32.6%

Return on the money invested

ROCE

-18.5%

Weak — -18.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-5.1%

Shrinking sales (-5.1% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

4.7%

Thin free cash flow (4.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

N/A

—

Data not available

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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