Archer Aviation (ACHR) AI Stock Analysis

• Market Cap: $5.55B
• Dividend Yield: N/A
• Average Volume (3M): 29.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.14
• Revenue Growth: N/A
• EPS Growth: -4.00%
• Country: US
• Employees: 774
• Sector: Industrials
• Sector Strength: 73
• Industry: Aerospace & Defense
• EPS (TTM): -0.36
• Shares Outstanding: 645,026,300
• 10 Day Avg. Volume: 23,110,431
• 30 Day Avg. Volume: 29,175,727
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 493.09
• Enterprise Value/Gross Profit: -618.01
• Enterprise Value/Ebitda: -7.93
• 1Y Price Target: $13.14
• Price Target Upside: 55.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 49 Neutral
• Price Target: ―

Archer Aviation's overall score reflects significant challenges in financial performance due to its developmental stage, lack of revenue, and reliance on financing. Technical indicators suggest mixed momentum, while valuation remains challenging with negative earnings. Positive developments in strategic partnerships and liquidity were highlighted in the earnings call, but FAA certification and high expenses pose risks.

Positive Factors

Cash Position

Archer's cash balance sits at an industry-highest $1.7B following its $850M capital raise, positioning the company well to continue its production expansion.

Partnerships

ACHR finds itself in the envious position of partnerships with leading defense tech players like Anduril, advanced VTOL architecture, strategic geopolitical relationships, and the resources to execute on a generational opportunity.

Negative Factors

Financial Performance

Archer reported an Adj. EBITDA loss of ($118.7M) and free cash use of ~($122M) in the quarter, reflecting a ~27% year-over-year decrease in the bottom-line.

Regulatory Challenges

The FAA has only approved ~15% of compliance verification documents for Midnight, and there is a possibility it may not finish advancing the Midnight out of policy by the expected time.

Archer Aviation Business Overview & Revenue Model

Company Description

Archer Aviation Inc. (ACHR) is an aerospace company specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft. Founded with the vision of transforming urban mobility, Archer Aviation aims to create a sustainable and efficient transportation solution for congested cities. The company's core product is its eVTOL aircraft, designed to provide rapid, safe, and environmentally friendly air travel for short to medium distances.

How the Company Makes Money

Archer Aviation makes money primarily through the sale and potential leasing of its eVTOL aircraft. The company is focused on developing a viable urban air mobility service, which includes generating revenue from aircraft sales to commercial operators or through direct operation of its own aerial ridesharing service. Key revenue streams also include partnerships with major companies in the aerospace and automotive sectors, such as its collaboration with United Airlines for pre-orders of its aircraft, which provides a future revenue pipeline. Additionally, Archer may explore revenue from aftermarket services, maintenance, and potentially licensing its technology in the future.

Archer Aviation Financial Statement Overview

Summary

Archer Aviation is in its developmental phase with no revenue and relies heavily on financing for cash flow. While it has a solid equity base and cash reserves, the absence of operational income and negative cash flows pose a significant challenge to long-term sustainability.

Income Statement

Archer Aviation has reported consecutive years of zero revenue, reflecting a pre-revenue stage typical for companies in development phases, especially in aerospace & defense. Persistent negative EBIT and EBITDA highlight operational challenges. The lack of revenue growth indicates no commercial operations yet, affecting profitability metrics.

Balance Sheet

The company maintains a solid equity base, highlighted by a favorable equity ratio and substantial cash reserves relative to debt. The debt-to-equity ratio remains low, suggesting prudent financial management. However, without revenue, the long-term sustainability of asset growth through equity raises remains uncertain.

Cash Flow

Archer Aviation's cash flow shows significant negative free cash flow, common for companies in heavy R&D phases. Operating cash flow is negative, indicating cash consumption without offsetting income. Financing activities provide substantial cash inflows, crucial for ongoing operations without revenue generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.40M	0.00	0.00	0.00	0.00	0.00
Gross Profit	-7.50M	-11.70M	-5.80M	-7.70M	-3.03M	-103.00K
EBITDA	-584.60M	-524.90M	-451.60M	-309.60M	-343.77M	-24.40M
Net Income	-612.80M	-536.80M	-457.90M	-317.30M	-347.80M	-24.80M
Balance Sheet
Total Assets	1.94B	1.00B	554.30M	573.80M	768.40M	41.80M
Cash, Cash Equivalents and Short-Term Investments	1.72B	834.50M	464.60M	531.20M	746.90M	36.60M
Total Debt	81.60M	79.00M	23.20M	22.20M	23.10M	3.20M
Total Liabilities	257.40M	248.60M	187.20M	80.50M	69.50M	5.90M
Stockholders Equity	1.68B	752.60M	367.10M	493.30M	698.90M	35.90M
Cash Flow
Free Cash Flow	-472.30M	-450.60M	-315.90M	-207.30M	-111.90M	-24.70M
Operating Cash Flow	-399.60M	-368.60M	-271.60M	-200.40M	-108.40M	-22.80M
Investing Cash Flow	-77.90M	-82.00M	420.70M	-464.30M	-3.50M	-1.90M
Financing Cash Flow	987.10M	820.40M	250.10M	-9.90M	822.20M	51.20M

Archer Aviation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Negative. The current price of 8.45 is below the 20-day moving average (MA) of 9.41, below the 50-day MA of 10.22, and below the 200-day MA of 9.16, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 33.39 is Neutral, neither overbought nor oversold. The STOCH value of 8.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACHR.

Archer Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
ACHR	49 Neutral	$5.55B	―	-60.83%	―	―	-4.00%
SPCE	47 Neutral	$177.38M	―	-91.98%	―	-84.19%	55.27%
EH	47 Neutral	$1.16B	―	-30.69%	―	87.67%	18.33%
MNTS	44 Neutral	$15.24M	―	688.16%	―	-70.65%	90.41%
EVEX	43 Neutral	$1.15B	―	-320.52%	―	―	-30.78%
EVTL	25 Underperform	$468.89M	―	115.25%	―	―	―

Archer Aviation Corporate Events

Archer Aviation Appoints New Senior VP of Finance

On March 31, 2025, Archer Aviation Inc. announced the appointment of Harsh Rungta as its Senior Vice President, Finance and Chief Accounting Officer. Mr. Rungta brings extensive experience from his previous roles at Tesla and PricewaterhouseCoopers, and his compensation package includes a base salary, bonuses, and equity awards. This strategic appointment is expected to enhance Archer Aviation’s financial leadership and operational capabilities.

Archer Aviation Secures $301.75M in Direct Offering

Archer Aviation announced on February 11, 2025, a registered direct offering raising $301.75 million by selling 35.5 million shares of Class A common stock. The funding, involving institutional investors like BlackRock, will be used to advance hybrid aircraft development and other corporate purposes, enhancing Archer’s financial standing and positioning it strategically for defense market opportunities.