Stock fact sheet · data as of
Stem, Inc. (STEM): fair value, margin of safety and Wheel Score
Utilities · Renewable Utilities · United States · Speculative / Distressed
Is STEM undervalued?
At 3.59 (close of 16 Oct 2026), STEM trades 80% below the GLS average fair value of 17.68. That average comes from 1 models run on the latest filings, and 1 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Stem, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The average is built from just 1 models (10 Cap) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files STEM under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.
Nine valuation models for STEM
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 17.68 | +393% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -47.56 | -1425% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.85 | +91% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Stem, Inc. scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 1.9/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are high - ROIC 181.7%, ROE -55.2%, ROA 44.6% - with debt at -1.30 times equity and a free-cash-flow yield of 16.8%.
Stem, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Service 55%, Hardware 45% (quarter Q2 FY2026).
Institutional ownership scores 3/10, insider activity 6/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 181.7% |
|---|---|---|---|
| GLS Moat | 1.9 / 10 | ROE | -55.2% |
| Debt / equity | -1.30 | ROA | 44.6% |
| Free-cash-flow yield | 16.8% | Payout ratio | 0% |
| Institutions | 3 / 10 | Insiders · Congress | 6 · 5 / 10 |
Wheel Score 45: Weak
With a Wheel Score of 45 Stem, Inc. sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 25/25, Health 9/20, Moat 3/15, Premium 5/20, Stability 6/20 - show where: Moat (3/15) scores lowest.
Implied volatility is 170%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. Chain open interest is 2,725 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 195k shares a day on a market cap of $35M, with a beta of 1.59 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 80% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 3 / 15 | moat 1.9/10 | |
| Premium | 5 / 20 | implied volatility 170% | |
| Stability | 6 / 20 | 195k shares/day, $35M cap, beta 1.59 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Stem, Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Renewable Utilities
The 12 companies below are the closest to Stem, Inc. by market cap within the Renewable Utilities industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
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| VGAS Verde Clean Fuels, Inc. | 1.04 | 3.15 | +67% | 36No options | $46M |
| BESS Bimergen Energy Corporation | 2.31 | - | - | 30No options | $16M |
| HTOO Fusion Fuel Green PLC | 1.86 | 63.04 | +97% | 38No options | $14M |
| WNDW SolarWindow Technologies, Inc. | 1.46 | 0.1155 | -1164% | 13No options | $96M |
| PBK PowerBank Corporation Common Stock | 0.1872 | - | - | 30No options | $10M |
| NXXT NextNRG Inc. | 0.5812 | - | - | 30No options | $10M |
| ADHI Arsenal Digital Holdings, Inc. | 0.3314 | 8.58 | +96% | 35No options | $6M |
| ELLO Ellomay Capital Ltd. | 20.47 | 100.53 | +80% | 39No options | $282M |
| GFUZ General Fusion Group Ltd. | 7.04 | 1.41 | -399% | 17Weak | $568M |
| XIFR XPLR Infrastructure, LP | 9.89 | 9.11 | -9% | 59Fair | $932M |
| FLNC Fluence Energy, Inc. | 6.43 | - | - | 39Weak | $1.3B |
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Start free See the Sunday ScanQuestions about STEM
Is STEM undervalued right now?
By the GLS models, yes: at 3.59 the stock is 80% below the average fair value of 17.68 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of STEM and what does it mean?
STEM scores 45 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for STEM?
17.68 per share as of 16 Oct 2026 - the simple average of the 1 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Stem, Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does STEM have listed options, and how liquid are they?
Yes. The nightly snapshot found 70 listed contracts with 2,725 open interest across all expiries and implied volatility of 170% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.