Stem Holdings Stock Forecast & Price Prediction 2026-2027

Algorithmic price targets and analysis for STMH based on fundamentals, valuation multiples, and historical data.

$3.98+1.79%
Bearish

Price Target Summary

Bear Case
$3.18
-20.0% from current
Base Case
$2.79
-30.0% from current
Bull Case
$5.02
+26.0% from current

Technical Outlook

52-Week Range Analysis

$3.01$6.19
Current: $3.98
Support Level
$3.33
Resistance Level
$5.87
From 52W High
-35.7%
From 52W Low
+32.2%

Fundamental Analysis

Revenue Growth Projection

Year 1 Projected
$787.8M
Year 2 Projected
$550.8M
Year 3 Projected
$426.5M

Based on -37.6% YoY growth, tapered 20% per year in outer projections.

Valuation vs Peers

Current P/S
11.45x
Sector Median P/S
2.5x
Assessment
Premium to sector

Cash Position

Cash on Hand
$466.1M
Total Debt
$691.5M
Cash Runway
31 mo

Key Metrics

Current Price$3.98
Market Cap$2.81B
P/S Ratio11.45x
Revenue (TTM)$1.26B
Revenue Growth (YoY)-37.6%
Gross Margin1.1%
Cash on Hand$466.1M
Total Debt$691.5M
52W High$6.19
52W Low$3.01

Signal Breakdown

Overall Signal: Bearish
  • Negative or flat revenue growth
  • Healthy gross margins above 40%
  • Total debt exceeds cash position
  • Elevated P/S ratio relative to sector

Risk Factors

  • Revenue is declining year-over-year (-37.6%), which may pressure valuation multiples.
  • Share dilution rate of 15.3% is above average, which may erode shareholder value.

Analyst Summary

Stem Holdings (STMH) is a MSO cannabis company with contracting revenue and a market capitalization of $2.81B. Based on trailing revenue of $1.26B and a P/S ratio of 11.45x, the stock trades at a premium relative to the sector median of 2.5x. Our algorithmic base-case price target of $2.79 implies downside of 30.0% from current levels. The overall signal is bearish, as several fundamental metrics are under pressure. Investors should weigh the 2 identified risk factors before making any investment decision.

Frequently Asked Questions

What is the price target for STMH?+
Our algorithmic base-case price target for Stem Holdings (STMH) is $2.79, with a bear case of $3.18 and a bull case of $5.02. These targets are derived from sector-average and premium P/S multiples applied to projected revenue.
Is STMH a buy right now?+
Based on our algorithmic analysis, STMH currently carries a bearish signal. Negative or flat revenue growth. Healthy gross margins above 40%. This is not a buy or sell recommendation — always do your own due diligence.
What is the revenue forecast for Stem Holdings?+
Based on the current year-over-year growth rate of -37.6%, we project STMH revenue at $787.8M in Year 1, $550.8M in Year 2, and $426.5M in Year 3. Growth rates are tapered in outer years.
What are the risks of investing in STMH?+
Revenue is declining year-over-year (-37.6%), which may pressure valuation multiples. Share dilution rate of 15.3% is above average, which may erode shareholder value.
How does STMH valuation compare to the cannabis sector?+
STMH has a trailing P/S ratio of 11.45x compared to the cannabis sector median of 2.5x. The stock premium to sector.

Important Disclaimer

This is not financial advice. Forecasts are algorithmic projections based on historical data and should not be used as the sole basis for investment decisions. Past performance does not guarantee future results. Cannabis stocks carry significant risk including regulatory, market, and operational risks. Always consult with a qualified financial advisor before making investment decisions. Cannabismarketcap does not recommend buying, selling, or holding any security.