GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Stem Inc (NYSE:STEM) » Definitions » Degree of Operating Leverage

Stem (STEM) Degree of Operating Leverage : -6.70 (As of Mar. 2025)


View and export this data going back to 2021. Start your Free Trial

What is Stem Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Stem's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -6.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Stem's Degree of Operating Leverage or its related term are showing as below:

STEM's Degree of Operating Leverage is ranked better than
87.78% of 401 companies
in the Utilities - Independent Power Producers industry
Industry Median: 0.6 vs STEM: -6.70

Stem Degree of Operating Leverage Historical Data

The historical data trend for Stem's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Stem Degree of Operating Leverage Chart

Stem Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 1.77 -0.11 0.29 -0.11 -8.28

Stem Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.12 -59.87 -12.89 -8.28 -6.70

Competitive Comparison of Stem's Degree of Operating Leverage

For the Utilities - Renewable subindustry, Stem's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Stem's Degree of Operating Leverage Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Stem's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Stem's Degree of Operating Leverage falls into.


;
;

Stem Degree of Operating Leverage Calculation

Stem's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -788.594 (Mar. 2025) / -149.358 (Mar. 2024) - 1 )/( 151.627 (Mar. 2025) / 419.579 (Mar. 2024) - 1 )
=4.2799/-0.6386
=-6.70***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Stem  (NYSE:STEM) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Stem Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Stem's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Stem Business Description

Traded in Other Exchanges
Address
4 Embarcadero Center, Suite 710, San Francisco, CA, USA, 94111
Stem Inc is a provider of energy storage systems. The company bundles third-party hardware with its proprietary Athena software to provide customers a turnkey solution. Stem sells its solutions to commercial and industrial customers as well as independent power producers and renewable developers. Its solutions help customers maximize renewable energy generation and help build a cleaner and more resilient grid. The Company operates as one operating segment that is focused exclusively on technology services that transform the way energy is distributed and consumed.
Executives
Saul R. Laureles officer: Chief Legal Officer 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Rahul Shukla officer: Chief Accounting Officer 100 CALIFORNIA STREET, SAN FRANCISCO CA 94111
Matthew Tappin officer: President, Asset Management 100 CALIFORNIA STREET, 14TH FLOOR, SAN FRANCISCO CA 94111
Michael James Carlson officer: Chief Operating Officer 100 CALIFORNIA STREET, SAN FRANCISCO CA 94111
John Eugene Carrington director, officer: CEO and Director 350 WEST WASHINGTON STREET, SUITE 600, TEMPE AZ 85281
Alan Russo officer: Chief Revenue Officer 100 ROLLINS ROAD, MILLBRAE CA 94030
William John Bush officer: Chief Financial Officer 539 BRYANT STREET, SUITE 403, SAN FRANCISCO CA 94107
Prakesh Patel officer: Chief Strategy Officer 100 ROLLINS ROAD, MILLBRAE CA 94030
Robert Schaefer officer: President, AlsoEnergy 100 CALIFORNIA STREET, SAN FRANCISCO CA 94111
David S Buzby director
Kim Homenock officer: Chief People Officer 100 CALIFORNIA STREET, SAN FRANCISCO CA 94111
Larsh Johnson officer: Chief Technical Officer 100 ROLLINS RD, MILLBRAE CA 94030
Lisa L Troe director 12181 BLUFF CREEK DRIVE, 4TH FLOOR, LOS ANGELES CA 90094
Adam Daley director C/O MAGNETAR CAPITAL LLC, 1603 ORRINGTON AVENUE, 13TH FLOOR, EVANSTON IL 60201
Anil Tammineedi director 100 ROLLINS RD, MILLBRAE CA 94030