Is STEM, INC. (STEM) Halal?

NYSE Utilities United States $75M
✗ NOT HALAL
Confidence: 90/100
STEM, INC. (STEM) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 533.5% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. STEM, INC. operates in the Utilities sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 533.5%
/ 30%
55.4%
/ 30%
58.4%
/ 30%
447.64%
/ 5%
✗ NOT HALAL
DJIM 533.5%
/ 33%
55.4%
/ 33%
58.4%
/ 33%
447.64%
/ 5%
✗ NOT HALAL
MSCI 123.9%
/ 33%
12.9%
/ 33%
13.6%
/ 33%
447.64%
/ 5%
✗ NOT HALAL
S&P 533.5%
/ 33%
55.4%
/ 33%
58.4%
/ 33%
447.64%
/ 5%
✗ NOT HALAL
FTSE 123.9%
/ 33%
12.9%
/ 33%
13.6%
/ 50%
447.64%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-9.18
P/B Ratio
-0.3
EV/EBITDA
-39.3
EV: $395M
Revenue
$156M
Growth: -15.6%
Beta
1.4
High volatility
Current Ratio
0.9

Profitability

Gross Margin 39.7%
Operating Margin 8.3%
Net Margin 88.2%
Return on Assets (ROA) -7.0%

Cash Flow & Balance Sheet

Operating Cash Flow$7M
Free Cash Flow$259,000
Total Debt$325M
Current Ratio0.9
Total Assets$309M

Price & Trading

Last Close$9.72
50-Day MA$12.78
200-Day MA$15.20
Avg Volume222K
Beta1.4
52-Week Range
$5.82
$32.23

About STEM, INC. (STEM)

CEO
Mr. Arun Narayanan
Employees
423
Sector
Utilities
Industry
Utilities - Renewable
Country
United States
Exchange
NYSE
Market Cap
$75M
Currency
USD

Stem, Inc. engages in the development, deployment, and operation of clean energy assets in the United States and internationally. The company offers OEM energy storage systems, and edge hardware devices and solutions. It also provides PowerTrack, an integrated suite of software and solutions for solar, storage, and hybrid assets, including software, energy management system, supervisory control and data acquisition, power plant controller, logger, and optimizer. In addition, the company offers energy optimization software, asset management software, and advisory services; managed services, including the design, procurement, commissioning, operation, and optimization of energy storage and hybrid systems; and professional services to support solar and storage projects, as well as the sale of project assets. It serves developers, asset owners, engineering, procurement and construction firms, distributors, commercial and industrial customers, utilities, and independent power producers. Stem, Inc. was incorporated in 2009 and is headquartered in Houston, Texas.

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Frequently Asked Questions

Is STEM, INC. (STEM) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), STEM, INC. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is STEM, INC.'s debt ratio?

STEM, INC.'s debt ratio is 533.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 123.9%.

What are STEM, INC.'s key financial metrics?

STEM, INC. has a market capitalization of $75M, and revenue of $156M. The company maintains a gross margin of 39.7% and a net margin of 88.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.