Stem Inc. Class A
Find Ratings ReportsSTEM INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. STEM INC has strong liquidity. Currently, the Quick Ratio is 1.66 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 22.73% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 167.42 | 155.44 |
EBITDA ($mil) | -23.52 | -23.35 |
EBIT ($mil) | -33.76 | -33.75 |
Net Income ($mil) | -37.69 | -35.27 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 113.59 | 249.98 |
Total Assets ($mil) | 1356.98 | 1421.89 |
Total Debt ($mil) | 603.88 | 542.64 |
Equity ($mil) | 426.2 | 551.63 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 12.6 | 14.75 |
EBITDA Margin | -14.04 | -15.01 |
Operating Margin | -20.16 | -21.71 |
Sales Turnover | 0.34 | 0.26 |
Return on Assets | -10.34 | -8.72 |
Return on Equity | -32.95 | -22.49 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.88 | 2.0 |
Debt/Capital | 0.59 | 0.5 |
Interest Expense | 4.66 | 2.04 |
Interest Coverage | -7.25 | -16.55 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 155.93 | 154.54 |
Div / share | 0.0 | 0.0 |
EPS | -0.24 | -0.23 |
Book value / share | 2.73 | 3.57 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 4630211.0 | 4469293.0 |
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.65 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 7.95. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, STEM INC proves to trade at a discount to investment alternatives.
Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
STEM NM | Peers 43.53 | STEM NM | Peers 25.21 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. STEM's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. STEM's P/CF is negative making the measure meaningless. |
|||||||||||||||||||||||
Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
STEM NM | Peers 24.78 | STEM NA | Peers 0.97 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. STEM's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
|||||||||||||||||||||||
Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
STEM 0.65 | Peers 7.95 | STEM -58.02 | Peers 38.01 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. STEM is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, STEM is expected to significantly trail its peers on the basis of its earnings growth rate. |
|||||||||||||||||||||||
Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
STEM 0.60 | Peers 6.82 | STEM 27.14 | Peers 20.15 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. STEM is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. STEM has a sales growth rate that significantly exceeds its peers. |
|||||||||||||||||||||||