Debt-to-Equity Ratio

Stem’s Debt-to-Equity Ratio of -1.24x means the company has more total liabilities than shareholder equity, resulting in a negative ratio — this typically indicates the firm’s equity base is negative, often a sign of financial distress.

Among Technology sector peers, this ratio is far worse than the sector median of 0.27x, placing Stem in the 2nd percentile — meaning only 2% of peers have a more unfavorable ratio. No trend data is available: both the year-over-year and quarter-over-quarter changes are listed as “N/A,” so there is no way to assess whether the ratio is improving or deteriorating over time. The combination of an already alarming negative ratio and the absence of trend information makes it impossible to gauge any potential turnaround, amplifying the investment risk. This metric directly supports the overall CAUTIOUS verdict, as a negative debt-to-equity ratio is a fundamental red flag that signals a precarious financial structure.

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