Stem (STEM) Moat Score: 5/10 (As of Jun. 25, 2026)


STEM Stem Inc STEM
60 GF Score
Price $7.24
GF Value $11.63
Valuation Possible Value Trap
! 5 Warning Signs
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What is Stem Moat Score?

Stem STEM -2.82% 60 Moat Score is 5 as of Jun. 25, 2026. GuruFocus rates STEM with a GF Score™ of 60/100 and a GF Value™ of $11.63 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 546 Utilities - Independent Power Producers companies, Stem ranks better than 95.97% on this metric.

Stem has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Stem has Narrow Moat: Stem Inc benefits from a solid narrow moat with its innovative energy storage solutions and proprietary technology. The company has some customer switching costs and brand recognition, but lacks significant regulatory barriers or network effects.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Stem might have Narrow Moat - Solid narrow moat.

Stem  (NYSE:STEM) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Stem Moat Score Related Terms

STEM vs NXXT, AGIG, VGAS: Moat Score Comparison

For the Utilities - Renewable subindustry, Stem's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Stem's Moat Score distribution charts can be found below:

* The bar in red indicates where Stem's Moat Score falls into.


STEM
60GF Score
Stem Inc STEM
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Stem (STEM) has a Moat Score of 5 as of Jun. 25, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Stem ranks #22 out of 546 companies in the Utilities - Independent Power Producers industry, placing it in the top 4%.
Is Stem's Moat Score too high?
Stem's current Moat Score is 5. Based on the distribution chart, Stem ranks #22 out of 546 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Stem has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Stem's Moat Score compare to NXXT and AGIG?
According to the Utilities - Independent Power Producers industry distribution chart, Stem ranks #22 out of 546 companies for Moat Score. This places Stem in the top 4% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Utilities - Independent Power Producers company?
A good Moat Score depends on the Utilities - Independent Power Producers industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Stem's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stem stock overvalued right now?
Based on GuruFocus' analysis, Stem (STEM) is currently considered Possible Value Trap. The stock's GF Value™ is $11.63, compared to a current price of $7.24 — trading 37.7% below its estimated fair value. The current Moat Score is 5. Stem's overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Stem (STEM), the current Moat Score is 5 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Stem (STEM) Overvalued in 2026?

Based on GuruFocus' analysis, Stem stock appears to be undervalued. The current stock price of $7.24 is trading 37.7% below its estimated GF Value™ of $11.63. GuruFocus considers Stem to be Possible Value Trap.

Key valuation signals for STEM:

  • Moat Score: 5
  • GF Value™: $11.63 vs. price of $7.24 (37.7% below fair value)
  • GF Score™: 60/100 with 5 warning signs

No single metric tells the full story. See the STEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Stem Business Description

Other Exchanges 5QQ:Germany
Address 1400 Post Oak Boulevard, Suite 560, Houston, TX, USA, 77056
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.
60GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$7.24
Price
$11.63
GF Value