Archer Aviation (ACHR) AI Stock Analysis

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Archer Aviation

(NYSE:ACHR)

Rating:49Neutral

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

Defense Contracts

Archer Aviation has secured contracts with the U.S. Department of Defense valued at $142M for the delivery of aircraft to the U.S. Air Force.

Market Development

The executive order aims at expanding drone and electric aircraft operations in the U.S., which supports Archer Aviation's market development.

Olympics Partnership

Archer announced its selection as the official air taxi provider of the LA28 Olympic and Paralympic Games and Team USA in an exclusive deal.

Negative Factors

Financial Performance

The company's cash usage for the year is expected to remain around $450M, with management anticipating 2Q25 adjusted EBITDA loss of $100-120M, and these needs are very comfortably accounted for with over $1B in the company's balance sheet.

Revenue Visibility

Near-term revenue visibility remains limited, as initial deployments will be modest in scale and heavily reliant on successful execution by local partners and regulatory bodies.

Archer Aviation (ACHR) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.68B

Dividend YieldN/A

Average Volume (3M)34.46M

Price to Earnings (P/E)―

Beta (1Y)3.12

Revenue GrowthN/A

EPS Growth17.43%

CountryUS

Employees774

SectorIndustrials

Sector Strength90

IndustryAerospace & Defense

Share Statistics

EPS (TTM)-0.17

Shares Outstanding549,011,050

10 Day Avg. Volume35,768,667

30 Day Avg. Volume34,456,482

Financial Highlights & Ratios

PEG Ratio0.11

Price to Book (P/B)0.91

Price to Sales (P/S)0.00

P/FCF Ratio-2.17

Enterprise Value/Market Cap0.06

Enterprise Value/Revenue16.23

Enterprise Value/Gross Profit-154.80

Enterprise Value/Ebitda-0.21

Forecast

1Y Price Target

$11.83

Price Target Upside0.85% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

Archer Aviation Business Overview & Revenue Model

Company DescriptionArcher 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 MoneyArcher 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 Key Performance Indicators (KPIs)

Any

Operating Expense Breakdown

Operating Expense Breakdown
Details core costs like R&D, marketing, and admin, offering insight into how efficiently the company runs and where it’s prioritizing investment.

Chart InsightsArcher Aviation's operating expenses have surged, particularly in Research and Development, reflecting aggressive investment in aircraft development and scaling production. Despite high costs, the strategic partnerships and strong liquidity position indicate potential for future revenue growth. The earnings call highlights challenges with FAA certification, yet Archer's focus on international expansion and defense opportunities could mitigate these risks. The company's robust financial foundation, bolstered by recent capital raises, supports its ambitious growth initiatives, including manufacturing up to 10 Midnight aircraft in 2025.

Data provided by:

Main Street Data

Archer Aviation Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q1-2025)

% Change Since: 29.19%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Neutral

The earnings call showcased Archer's strong liquidity position and strategic partnerships, alongside progress in its UAE launch plans and Midnight Aircraft program. However, the company continues to face financial losses and operational challenges, such as increased expenses and delays in piloted flight testing.

Q1-2025 Updates

Positive Updates

Strong Liquidity Position

Archer ended Q1 2025 with $1.03 billion in cash and cash equivalents, the highest cash balance in the industry, excluding an additional $400 million in funding from Stellantis.

Progress in UAE Launch Plans

Archer remains on track to deliver its first piloted aircraft to Abu Dhabi Aviation in the UAE later this year, with plans to conduct region-specific testing and deployment.

Strategic Partnerships

Archer has formed significant partnerships with companies like Anduril and Palantir, focusing on defense aviation and AI-driven aviation technologies.

Advancement in Midnight Aircraft Program

Archer is entering the piloted testing phase for their Midnight Aircraft, with flight testing expected to begin imminently.

Successful Fundraising

Archer closed an additional $300 million of equity capital in Q1 2025.

Negative Updates

Increased Operating Expenses

GAAP operating expenses for Q1 2025 were $144 million, a $20 million increase over the previous quarter due to higher headcount and material costs.

Delayed Piloted Flight Tests

The transition to piloted flight testing faced modest delays due to challenges with the new flight test instrumentation system.

Continued Adjusted EBITDA Loss

Archer reported an adjusted EBITDA loss of $109 million for Q1 2025, within the guided range but highlighting ongoing financial losses.

Company Guidance

In the Q1 2025 earnings call, Archer Aviation provided detailed guidance on various strategic initiatives and financial metrics. The company is focused on launching its Midnight aircraft in the UAE later this year as part of its Launch Edition program, with initial deployments planned for Abu Dhabi Aviation. Archer highlighted significant progress in their piloted flight test program, aiming to begin piloted flights imminently, supported by extensive testing and a robust data collection system measuring over 40,000 parameters. The company ended the quarter with over $1 billion in liquidity, achieved through an additional $300 million equity capital raise, and reported an adjusted EBITDA loss of $109 million, in line with their guidance of $95 million to $110 million. Archer also discussed their strategic partnerships, including those with Anduril for defense applications and Palantir for AI-based aviation software development. Looking ahead, Archer expects to continue scaling its production capabilities, targeting a manufacturing rate of two aircraft per month by the end of the year, while maintaining a disciplined approach to cash management and strategic investments.

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

Very Negative

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

Neutral

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

Negative

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00	0.00
	Gross Profit
-2.60M	0.00	-5.80M	-7.70M	-3.03M	-103.00K
	EBIT
-511.50M	-509.70M	-444.80M	-336.60M	-358.30M	-24.60M
	EBITDA
-504.70M	-524.90M	-451.60M	-309.60M	-343.77M	-24.40M
	Net Income Common Stockholders
-513.70M	―	-457.90M	-317.30M	-359.40M	-25.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03B	834.50M	464.60M	531.20M	746.90M	36.60M
	Total Assets
1.21B	1.00B	554.30M	573.80M	768.40M	41.80M
	Total Debt
78.30M	79.00M	23.20M	22.20M	23.10M	3.20M
	Net Debt
―	-755.50M	-441.40M	-47.20M	-723.80M	-33.40M
	Total Liabilities
203.30M	248.60M	187.20M	80.50M	69.50M	5.90M
	Stockholders Equity
1.01B	752.60M	367.10M	493.30M	698.90M	35.90M
Cash Flow		Free Cash Flow
-451.40M	-450.60M	-315.90M	-207.30M	-111.90M	-24.70M
	Operating Cash Flow
-376.70M	-368.60M	-271.60M	-200.40M	-108.40M	-22.80M
	Investing Cash Flow
-74.70M	-82.00M	420.70M	-464.30M	-3.50M	-1.90M
	Financing Cash Flow
764.00M	820.40M	250.10M	-9.90M	822.20M	51.20M

Archer Aviation Technical Analysis

Technical Analysis Sentiment

Positive

Last Price11.73

Price Trends

50DMA

9.20

Positive

100DMA

8.93

Positive

200DMA

7.18

Positive

Market Momentum

MACD

0.49

Negative

RSI

61.57

Neutral

STOCH

84.42

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Positive. The current price of 11.73 is above the 20-day moving average (MA) of 10.90, above the 50-day MA of 9.20, and above the 200-day MA of 7.18, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 61.57 is Neutral, neither overbought nor oversold. The STOCH value of 84.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACHR.

Archer Aviation Risk Analysis

Archer Aviation disclosed 47 risk factors in its most recent earnings report. Archer Aviation reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Archer Aviation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
ACHR	49 Neutral	$6.68B	―	-73.89%	―	―	17.43%
SPCE	48 Neutral	$132.21M	―	-95.46%	―	-34.33%	52.30%
EH	48 Neutral	$1.22B	―	-43.18%	―	167.99%	22.75%
EVEX	43 Neutral	$1.63B	―	-148.98%	―	―	-2.94%
MNTS	40 Neutral	$7.81M	―	688.16%	―	-46.28%	93.33%
EVTL	25 Underperform	$508.46M	―	115.25%	―	―	23.26%

* Industrials Sector Average

Performance Comparison

ACHR

Archer Aviation

11.73

8.51

264.29%

SPCE

Virgin Galactic Holdings

3.01

-10.69

-78.03%

Ehang Holdings

16.93

2.66

18.64%

MNTS

Momentus

1.41

-5.69

-80.14%

EVTL

Vertical Aerospace

5.93

-1.26

-17.52%

EVEX

Eve Holding

5.55

1.00

21.98%

Archer Aviation Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Archer Aviation Appoints New Senior VP of Finance

Positive

Apr 3, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy

Archer Aviation Secures $301.75M in Direct Offering

Positive

Feb 11, 2025

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.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.