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

Commercial Readiness

Test flights in Abu Dhabi demonstrate Archer's commercial readiness and resilience of its Midnight eVTOL aircraft under harsh conditions.

Partnerships and 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.

Negative Factors

Dilution and Investor Concerns

While dilutive and likely to draw investor questions regarding uses of cash, today’s capital raise financially positions Archer Aviation to be a leader in US eVTOL aircraft deployment.

Risks and Challenges

Risks affecting Archer include dilution risk, market adoption risk, supply chain risk, technological risk, execution risk, regulatory risk, competition risk, reputation risk, partnership risks, and uncertainty related to macroeconomic conditions and geopolitical environment.

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

Market Cap

$6.26B

Dividend YieldN/A

Average Volume (3M)39.32M

Price to Earnings (P/E)―

Beta (1Y)2.97

Revenue GrowthN/A

EPS Growth17.43%

CountryUS

Employees774

SectorIndustrials

Sector Strength87

IndustryAerospace & Defense

Share Statistics

EPS (TTM)-0.17

Shares Outstanding634,011,050

10 Day Avg. Volume44,206,338

30 Day Avg. Volume39,315,128

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

$11.75

Price Target Upside17.74% 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 been rising, with Research and Development costs consistently increasing, reflecting their focus on innovation and product development. The General and Administrative expenses show volatility, including a notable negative value in late 2023, likely due to accounting adjustments. The earnings call highlights increased expenses due to higher headcount and material costs, aligning with their strategic initiatives like the Midnight Aircraft program. Despite financial losses, Archer's strong liquidity and strategic partnerships position them well for future growth, particularly with the upcoming UAE launch.

Data provided by:

Main Street Data

Archer Aviation Earnings Call Summary

Earnings Call Date:May 12, 2025

(Q1-2025)

% Change Since: 9.91%|

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	-504.70M	-524.90M	-451.60M	-309.60M	-343.77M	-24.40M
Net Income	-513.70M	―	-457.90M	-317.30M	-359.40M	-25.00M
Balance Sheet
Total Assets	1.21B	1.00B	554.30M	573.80M	768.40M	41.80M
Cash, Cash Equivalents and Short-Term Investments	1.03B	834.50M	464.60M	531.20M	746.90M	36.60M
Total Debt	78.30M	79.00M	23.20M	22.20M	23.10M	3.20M
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

Neutral

Last Price9.98

Price Trends

50DMA

10.05

Negative

100DMA

9.04

Positive

200DMA

7.62

Positive

Market Momentum

MACD

0.02

Positive

RSI

47.56

Neutral

STOCH

47.59

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Neutral. The current price of 9.98 is below the 20-day moving average (MA) of 10.43, below the 50-day MA of 10.05, and above the 200-day MA of 7.62, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 47.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$10.65B	15.52	5.51%	1.92%	2.72%	-26.34%
ACHR	49 Neutral	$6.26B	―	-73.89%	―	―	17.43%
SPCE	48 Neutral	$117.24M	―	-95.46%	―	-34.33%	52.30%
EH	47 Neutral	$1.21B	―	-43.18%	―	167.99%	22.75%
MNTS	45 Neutral	$7.09M	―	688.16%	―	-46.28%	93.33%
EVEX	43 Neutral	$1.96B	―	-148.98%	―	―	-2.94%
EVTL	25 Underperform	$561.76M	―	115.25%	―	―	23.26%

* Industrials Sector Average

Performance Comparison

ACHR

Archer Aviation

9.98

5.58

126.82%

SPCE

Virgin Galactic Holdings

2.83

-5.41

-65.66%

Ehang Holdings

16.95

2.36

16.18%

MNTS

Momentus

1.12

-5.77

-83.74%

EVTL

Vertical Aerospace

6.64

-0.66

-9.04%

EVEX

Eve Holding

7.43

4.07

121.13%

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.Date of analysis: Apr 20, 2025