What is Stem, Inc.'s Shariah compliance score?

Stem, Inc. (STEM) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Stem, Inc. pass AAOIFI screening?

Stem, Inc. (STEM) does not pass AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. STEM's debt-to-market-cap is 983.5%.

How much purification is needed for Stem, Inc.?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Stem, Inc. (STEM) using the latest financial data.

Where can I screen Stem, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Stem, Inc. (STEM) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

STEMNot HalalF

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Compliance Status

Not Halal

Screened on Oct 10, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Stem, Inc. (STEM) halal? Not Halal. Based on AAOIFI screening, Stem, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Stem, Inc. (STEM) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 10, 2026. Source: https://halalscreener.app/en/stock/STEM

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

983.5% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding STEM

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

STEM: Is Stem, Inc. Halal?

Stem, Inc.

NYSEUtilitiesUS

$4.16

Market Cap: 37.3M

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About Stem, Inc.

Stem, Inc. operates internationally as a prominent provider of intelligent, digitally interconnected energy storage networks. The company delivers energy storage systems, which it sources from original equipment manufacturers (OEMs). Central to its offering is Athena, a proprietary artificial intelligence platform designed to integrate battery hardware with advanced software-enabled services, thereby optimizing the operation of these energy storage systems. Stem also extends its expertise through a wide array of support services, including system design and engineering, supply chain management, maximization of energy storage value streams, administration of warranties and preventive maintenance programs, operational reporting, and assistance with program enrollment and incentive management. Its diverse clientele encompasses commercial and industrial businesses, independent power producers, developers of renewable energy projects, and utility companies alongside grid operators. Stem, Inc. was founded in 2009 and maintains its corporate headquarters in San Francisco, California.

Sector: Utilities · Industry: Renewable Utilities

Why this does not pass

Interest-bearing debt is 983.5% of market cap, over the 30% AAOIFI limit.
Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 10, 2026

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Institutional-grade Shariah analysis

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PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

Compliance History

Not Halal, unchanged since Aug 2026.

No status changes recorded since we began tracking.

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Utilities

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

0011.KLA+

Brite-Tech Bhd

$0.28

-0.02%

3069.KLA+

Mega First Corporation Bhd

$2.89

+0.04%

5041.KLA+

PBA Holdings Bhd

$2.08

+0.00%

5209.KLA+

Gas Malaysia Bhd

$5.35

-0.01%

5264.KLA+

Malakoff Corporation Bhd

$0.80

+0.02%

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Frequently Asked Questions

Is Stem, Inc. (STEM) halal to invest in?

Stem, Inc. (STEM) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Stem, Inc. get a F compliance rating?

Stem, Inc. (STEM) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 983.5% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Stem, Inc.'s Shariah verdict?

Stem, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Stem, Inc. re-screened for Shariah compliance?

Stem, Inc. (STEM) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 10, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.