1Yr·

What do you say to $STEM (+15.73%) ? I think it's totally underrated, but nobody else seems to think so?

6 Comments

Hennington Research@HennRes

1Yr

$STEM

•

DrWindbeutel@DrWindbeutel

1Yr

And why do you think that?

••

ole-4063@ole-4063

1Yr

The company has a negative eps they are not yet making a profit

••

Dennis@GordonGekko83

1Yr

A sea buckthorn pearl!!!

••

Jane@Bigtechfuture

1Yr

would justify a higher valuation:
- the main story is: Stem is on its way to becoming a SW SaaS company with 80% EBITDA margin (multiple award-winning Athena-SW products - best in class with AI basis)
- Managing the generation and marketing of electricity
- Order book is huge - but for battery storage farms.
The acquired business with SaaS-SW for solar farms is growing again, is becoming more profitable and has crosselling potential.
- The cost side has been successfully brought under control (purchase of batteries and in particular development of the software)
- Management has ruled out the need for further capital
- Working capital management is now working well and is freeing up sufficient capital until cash flow is positive.
Interest rates will fall - customers can finance better again.

This speaks against
- SaaS sales are rising much more slowly than originally thought.
Only many secured orders for battery storage systems - but many of them.
The overpriced takeover of Also-Energy does not bring any additional benefits.
- Sales are primarily generated in Q4. Only 8% of annual sales are forecast for Q1
- The run rate to cash flow positive is implausible
- Projects are postponed due to interest rates

Nevertheless, I think there is great potential and they should actually start to rise slowly.

What do you think?

••

Markus@MH1976

1Yr

@Bigtechfuture I agree with you 100%...huge potential...top topic in times of AI energy/management of energy...only the environment doesn't fit 100% yet, but it will!

••