STEM Debt-to-Equity Ratio Analysis

A debt-to-equity ratio of -1.19x means the company has more total liabilities than total shareholders' equity, effectively placing it in a negative equity position — a sign of high financial risk.

Compared to sector peers, the sector median is 0.73x, and STEM sits at the 7th percentile, meaning 93% of peers have healthier (positive or lower negative) ratios. The year-over-year change is not available, but the quarter-over-quarter change shows a +4.0% improvement from -1.24x to -1.19x, indicating the negative equity position has narrowed slightly. The combination of a deeply negative ratio and only a modest quarterly improvement implies persistent financial risk with no sign of a swift return to positive equity. This metric contradicts the overall NEUTRAL verdict, as the negative equity position suggests a material risk factor that outweighs a balanced assessment.

Frequently Asked Questions