Stem: Are The Shares A Sell?

Aug. 24, 2023 1:38 PM ETStem, Inc. (STEM) StockSTEM16 Comments
Pacifica Yield
12.58K Followers

Summary

  • Stem's common shares have collapsed and show no signs of recovering in the near term.
  • The company's revenue growth rate has moderated with gross profit margins seeing some incremental year-over-year growth.
  • Its cash position has deteriorated significantly and external capital might be required within three quarters. This comes as the decarbonization trend ramps up.
Tilted solar panels, near the mountains of the Mojave Desert

andreiorlov/iStock via Getty Images

The post-pandemic stock market zeitgeist of inflation and an aggressive Fed has posed intense headwinds to the clean energy sector, where wholesale losses across yieldcos to utility-scale battery plays have become the defining feature of the renewable energy transition in 2023. Stem (

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of STEM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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