STEMNEUTRAL

STEM Return on Equity (ROE) Analysis

-55.3%

Higher than 10% of Technology sector peers

Updated 1704h ago·SEC filings & market data

Key Takeaway

STEM (STEM) has a Return on Equity (ROE) of -55.3% as of May 2026.

Sector Performance

10th percentile

STEM

-55.3%

Sector Median

6.8%

Sector Avg

-3.9%

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Deep Analysis

STEM (STEM) has a Return on Equity (ROE) of -55.3% as of May 2026.

This places STEM in the 10th percentile of the Technology sector, which has a median Return on Equity (ROE) of 6.8% and a sector average of -3.9%. STEM's Return on Equity (ROE) is 913.2% below the sector median, a significant divergence that warrants closer examination. In context: ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about STEM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does STEM's Return on Equity (ROE) compare to its sector?

STEM's Return on Equity (ROE) of -55.3% compares to a Technology sector median of 6.8%, placing it in the 10th percentile.

Who are STEM's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%), MNDY (12.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.