StemSTEM -2.95%60 Net Margin % is -65.26% as of Mar. 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 421 Utilities - Independent Power Producers companies, Stem ranks better than 96.2% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Stem's Net Income for the
three
months ended in Mar. 2026 was $-18.9 Mil. Stem's Revenue for the
three
months ended in Mar. 2026 was $29.0 Mil. Therefore, Stem's net margin for the quarter that ended in Mar. 2026 was -65.26%.
The historical rank and industry rank for Stem's Net Margin % or its related term are showing as below:
STEM'
s Net Margin % Range Over the Past 10 Years
Min: -590.67 Med: -79.46 Max: 94.16
Current: 94.16
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Stem Net Margin % Related Terms
Stem Net Margin % Historical Data
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The historical data trend for Stem's Net Margin % 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.
For the Utilities - Renewable subindustry, Stem's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Stem's Net Margin % distribution charts can be found below:
* The bar in red indicates where Stem's Net Margin % falls into.
* 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 (STEM) has a Net Margin % of -65.26% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Stem and its competitors. According to the industry distribution chart, Stem ranks #16 out of 421 companies in the Utilities - Independent Power Producers industry, placing it in the top 3.8%.
Is Stem's Net Margin % too high?
Stem's current Net Margin % is -65.26%. Based on the distribution chart, Stem ranks #16 out of 421 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 Net Margin % compare to NXXT and AGIG?
According to the Utilities - Independent Power Producers industry distribution chart, Stem ranks #16 out of 421 companies for Net Margin %. This places Stem in the top 4% of its industry — outperforming the majority of peers. The industry median Net Margin % is 6.17. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for an Utilities - Independent Power Producers company?
The median Net Margin % among Utilities - Independent Power Producers companies is 6.17, based on 421 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Stem and its competitors. For the Utilities - Independent Power Producers industry, the median Net Margin % is 6.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stem's current Net Margin % is -65.26%. 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 $7.23 — trading 37.8% below its estimated fair value. The current Net Margin % is -65.26%. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Stem (STEM), the current Net Margin % is -65.26% as of Mar. 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 $7.23 is trading 37.8% below its estimated GF Value™ of $11.63.
GuruFocus considers Stem to be Possible Value Trap.
Key valuation signals for STEM:
Net Margin %: -65.26%
GF Value™: $11.63 vs. price of $7.23 (37.8% below fair value)
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 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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