Stem (STEM) Beneish M-Score: -3.84 (As of Jun. 25, 2026)


STEM Stem Inc STEM
60 GF Score
Price $7.22
GF Value $11.63
Valuation Possible Value Trap
! 5 Warning Signs
View Full Analysis

What is Stem Beneish M-Score?

Stem STEM -3.09% 60 Beneish M-Score is -3.84 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 390 Utilities - Independent Power Producers companies, Stem ranks better than 95.13% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Stem's Beneish M-Score or its related term are showing as below:

STEM' s Beneish M-Score Range Over the Past 10 Years
Min: -22.66   Med: -3.97   Max: 3.81
Current: -3.84

During the past 7 years, the highest Beneish M-Score of Stem was 3.81. The lowest was -22.66. And the median was -3.97.

Stem Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Stem's Beneish M-Score 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.

Stem Beneish M-Score Chart

Stem Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial 0.00 3.81 3.41 -6.81 -4.66

Stem Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score 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 -6.71 -5.44 -4.81 -4.66 -3.84

STEM vs NXXT, AGIG, VGAS: Beneish M-Score Comparison

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

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

* The bar in red indicates where Stem's Beneish M-Score falls into.


STEM
60GF Score
Stem Inc STEM
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Stem Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Stem for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.953+0.528 * 0.3956+0.404 * 0.9436+0.892 * 1.0074+0.115 * 0.8299
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6405+4.679 * -0.223638-0.327 * 0.9381
=-3.84

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $33.3 Mil.
Revenue was 29 + 47.143 + 38.237 + 38.374 = $152.8 Mil.
Gross Profit was 10.859 + 23.038 + 13.58 + 12.8 = $60.3 Mil.
Total Current Assets was $85.3 Mil.
Total Assets was $281.9 Mil.
Property, Plant and Equipment(Net PPE) was $47.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $44.4 Mil.
Selling, General, & Admin. Expense(SGA) was $75.2 Mil.
Total Current Liabilities was $101.3 Mil.
Long-Term Debt & Capital Lease Obligation was $329.1 Mil.
Net Income was -18.925 + -15.979 + -23.791 + 202.531 = $143.8 Mil.
Non Operating Income was -0.555 + 0.812 + -3.811 + 220.421 = $216.9 Mil.
Cash Flow from Operations was -8.317 + 8.216 + 11.387 + -21.278 = $-10.0 Mil.
 Total Receivables was $34.7 Mil.
Revenue was 32.512 + 55.825 + 29.291 + 33.999 = $151.6 Mil.
Gross Profit was 10.538 + -2.438 + 6.196 + 9.375 = $23.7 Mil.
Total Current Assets was $110.6 Mil.
Total Assets was $405.1 Mil.
Property, Plant and Equipment(Net PPE) was $67.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.2 Mil.
Selling, General, & Admin. Expense(SGA) was $116.5 Mil.
Total Current Liabilities was $120.2 Mil.
Long-Term Debt & Capital Lease Obligation was $539.0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(33.345 / 152.754) / (34.733 / 151.627)
=0.218292 / 0.229069
=0.953

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(23.671 / 151.627) / (60.277 / 152.754)
=0.156113 / 0.394602
=0.3956

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (85.295 + 47.522) / 281.88) / (1 - (110.58 + 67.48) / 405.081)
=0.528817 / 0.560434
=0.9436

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=152.754 / 151.627
=1.0074

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(45.175 / (45.175 + 67.48)) / (44.432 / (44.432 + 47.522))
=0.401003 / 0.483198
=0.8299

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(75.174 / 152.754) / (116.502 / 151.627)
=0.492125 / 0.768346
=0.6405

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((329.066 + 101.267) / 281.88) / ((539.03 + 120.177) / 405.081)
=1.526653 / 1.627346
=0.9381

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(143.836 - 216.867 - -9.992) / 281.88
=-0.223638

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Stem has a M-score of -3.84 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -3.84 mean?
Stem (STEM) has a Beneish M-Score of -3.84 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Stem and its competitors. According to the industry distribution chart, Stem ranks #19 out of 390 companies in the Utilities - Independent Power Producers industry, placing it in the top 4.9%.
Is Stem's Beneish M-Score too high?
Stem's current Beneish M-Score is -3.84. Based on the distribution chart, Stem ranks #19 out of 390 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 Beneish M-Score compare to NXXT and AGIG?
According to the Utilities - Independent Power Producers industry distribution chart, Stem ranks #19 out of 390 companies for Beneish M-Score. This places Stem in the top 5% 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 Beneish M-Score for an Utilities - Independent Power Producers company?
A good Beneish M-Score depends on the Utilities - Independent Power Producers industry context. However, Beneish M-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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Stem and its competitors. Stem's current Beneish M-Score is -3.84. 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 $7.22 — trading 37.9% below its estimated fair value. The current Beneish M-Score is -3.84. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Stem (STEM), the current Beneish M-Score is -3.84 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 $7.22 is trading 37.9% below its estimated GF Value™ of $11.63. GuruFocus considers Stem to be Possible Value Trap.

Key valuation signals for STEM:

  • Beneish M-Score: -3.84
  • GF Value™: $11.63 vs. price of $7.22 (37.9% 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

Get the complete analysis for STEM

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

$7.22
Price
$11.63
GF Value