Stem, Inc. (STEM) Stock

Stem, Inc. (STEM) is a Technology stock trading at $5.59 (as of 2026-08-20), with a market capitalization of $50.11M and a trailing P/E of 0.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Stem, Inc. provides energy storage solutions and related services for customers in the United States and abroad, including systems sourced from original equipment manufacturers and an AI platform used to operate and manage battery hardware and software-enabled services. Its offerings include design and engineering, supply chain support, value-stream optimization, maintenance and reporting, and program and incentive administration for commercial and industrial entities, power producers, renewable developers, and utilities.

Understand Stem, Inc.: how it makes money

Stem, Inc. builds and operates a digitally connected energy storage network, selling energy storage systems sourced from OEMs, an AI platform (Athena) with hardware and software-enabled services, and ongoing system design, engineering, and managed operation services.

The profit model is to convert an installed base of energy storage assets into contracted, recurring revenue, supported by Athena-enabled operations and managed services, while pipeline growth helps sustain new contracted assets under management.

Revenue by segment (latest quarter)
Services	$0.0B
Managed Svcs	$0.0B
Software+Svcs	$0.0B
PowerTrack	$0.0B

Business quality (Weak): The business model appears to emphasize recurring revenue and asset management, but the latest quarter shows a wide operating loss (operating margin -49.0%), and the provided segment and revenue figures are very small in scale (revenue_b shown as 0.0B).

Bull case

Contracted recurring revenue focus: The company tracks Contracted Annual Recurring Revenue (0.07 USD_B), which aligns with a strategy of recurring monetization through service and software-enabled operation.
Pipeline supports future contracted growth: Pipeline is shown at 7.2 USD_B, and Twelve-Month Pipeline is 2.4 USD_B, indicating a measurable forward-looking opportunity set.
Athena AI platform connected to operations: Athena provides battery hardware and software-enabled services to operate energy storage systems, and the company reports Artificial Intelligence Tool Usage Among Employees at 70.0 percent.

Bear case

Significant operating losses: The latest quarter shows operating margin of -49.0 percent, indicating costs exceeded operating income despite a reported gross margin of 37.4 percent.
Revenue scale shown as very small: Financials list revenue_b as 0.0B for the period ended 2026-03-31, and several segment revenue candidates are near zero (for example, PowerTrack Revenue is 0.0).
Pipeline conversion risk: Even with Pipeline of 7.2 USD_B, converting pipeline into contracted revenue is uncertain, and the KPIs provided include only contracted and pipeline measures, not realized backlog or delivery detail.

Valuation — source: SEC EDGAR (first-party)
Price	$5.59
Market Cap	$50.11M
P/E Ratio	0.4
Price / Sales	0.36

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$156.27M
Net Margin	88.2%
Revenue Growth (YoY)	8.1%
EPS Growth (YoY)	-412.3%

Financial Health — source: SEC EDGAR
Altman Z-Score	-6.83 (distress)

Valuation vs Sector & Industry
Stock P/E	0.4
Sector P/E (Technology)	33.9
Industry P/E (Computers)	32.1
vs Sector	-98.9%
vs Industry	-98.8%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($5.97M)
Institutional Holders Tracked	10

Company
Sector	Technology
Industry	Computers
CEO	Arun Narayanan
Employees	569
Country	US
IPO Date	2020-10-08

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.