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archTIS Ltd. (AU:AR9)
ASX:AR9
Australian Market

archTIS Ltd. (AR9) AI Stock Analysis

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AU

archTIS Ltd.

(Sydney:AR9)

Rating:41Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
archTIS Ltd. scores low due to persistent operational profitability challenges and negative valuation metrics, despite revenue and cash flow improvements. Technical analysis suggests oversold conditions, providing some potential for rebound, but overall financial health remains a concern.

archTIS Ltd. (AR9) vs. iShares MSCI Australia ETF (EWA)

archTIS Ltd. Business Overview & Revenue Model

Company DescriptionarchTIS Limited designs and develops products, solutions, and services for secure information sharing and collaboration in Australia and internationally. It provides Kojensi Saas platform, which enables private and public sector organizations to share and collaborate on files in a secure space; Kojensi Enterprise that allows multi-level, multi-coalition, and multi-domain collaboration on classified information; and Kojensi Field, which allows military, government, and aid and emergency service workers to collaborate in the field. The company also offers NC Protect, which provides real time, attribute-based access, sharing control, and data-centric security collaboration applications, including Microsoft Office 365, SharePoint Online and on-premises, OneDrive, Teams, Yammer, and Exchange emails, as well as Nutanix Files, Dropbox, and Windows File Shares. In addition, it provides Axiomatics Policy Server, a software for enterprise-wide externalized dynamic authorization that delivers with attribute-based access control (ABAC); SmartGuard that securely shares data assets with dynamic authorization; Axiomatics Data Access Filter, a policy-driven dynamic data filtering and masking solution for relational databases, on-premise, and cloud; APIS and microservices; Appsian Security Platform that protects ERP data; and Appsian360, which delivers actionable insights that enables ERP data security and compliance. archTIS Limited was incorporated in 2006 and is headquartered in Barton, Australia.
How the Company Makes MoneyarchTIS Ltd. generates revenue primarily through the sale and licensing of its cybersecurity software solutions, Kojensi and NC Protect. The company offers these products through a subscription-based model, providing clients with recurring revenue streams from annual and multi-year contracts. Additionally, archTIS engages in strategic partnerships with technology and government organizations to expand its market reach and enhance its offerings. Professional services, such as consulting and implementation, also contribute to its revenue by assisting clients in integrating and optimizing the use of its software solutions. These revenue streams are supported by a focus on sectors with high-security demands, such as government, defense, and enterprises handling sensitive or classified information.

archTIS Ltd. Financial Statement Overview

Summary
archTIS Ltd. is on a growth path with increasing revenues, but it faces operational profitability challenges that impact net income and cash flows. The balance sheet is stable with low leverage, although profitability metrics remain weak. Cash flow improvements are evident, showing potential for future financial stability if operational performances are enhanced.
Income Statement
42
Neutral
The company has shown revenue growth from $4.6M in 2022 to $9.8M in 2024, indicating a strong growth trajectory. However, the net profit margin remains negative at -43.4% in 2024, driven by persistent net losses, though improving from prior years. Gross profit margin improved to 59.7% in 2024, signaling better cost management. EBIT and EBITDA margins remain low, reflecting operational challenges.
Balance Sheet
38
Negative
The company's debt-to-equity ratio is 0.12, indicating low leverage, which is a positive sign. However, the return on equity is negative due to ongoing net losses, compromising profitability. The equity ratio of 56.8% suggests a stable capital structure, but declining stockholders' equity is a concern.
Cash Flow
45
Neutral
Operating cash flow improved to $1.6M in 2024 from negative figures, indicating better cash management. Free cash flow remains negative, but the free cash flow to net income ratio shows improvement, which is promising for future cash sustainability. Financing activities have contributed positively to cash balances.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
6.90M9.80M6.37M4.64M4.63M548.75K
Gross Profit
5.31M5.85M-1.44M-508.10K1.36M-635.84K
EBIT
-8.12M-8.71M-10.93M-10.80M-4.89M-4.31M
EBITDA
-5.82M263.85K-10.61M-10.33M-4.76M-2.75M
Net Income Common Stockholders
-4.17M-4.26M-8.24M-9.45M-2.99M-3.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.76M2.92M3.25M6.52M12.74M2.43M
Total Assets
24.72M16.62M24.88M26.89M30.29M8.92M
Total Debt
886.42K1.17M780.36K985.76K1.08M1.36M
Net Debt
-5.88M-1.75M-2.46M-5.53M-11.66M-1.07M
Total Liabilities
7.54M7.17M11.44M7.69M10.65M2.11M
Stockholders Equity
17.19M9.44M13.44M19.20M19.65M6.81M
Cash FlowFree Cash Flow
316.46K-1.10M-5.07M-10.60M-568.46K-2.84M
Operating Cash Flow
3.06M1.64M-4.96M-10.57M-464.68K-2.84M
Investing Cash Flow
-4.33M-2.74M-40.08K-1.78M227.28K-3.64K
Financing Cash Flow
-86.37K773.36K1.73M6.14M10.56M2.01M

archTIS Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.06
Price Trends
50DMA
0.06
Positive
100DMA
0.07
Positive
200DMA
0.07
Positive
Market Momentum
MACD
<0.01
Positive
RSI
53.11
Neutral
STOCH
21.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AR9, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 21.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AR9.

archTIS Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.93B10.60-7.51%3.00%7.40%-8.09%
AUBTH
55
Neutral
$176.66M-33.75%-11.19%-174.51%
AUPRO
53
Neutral
AU$33.19M-52.29%4.10%-115.05%
AUAR9
41
Neutral
AU$19.29M-45.31%-28.80%32.87%
DE4TM
€44.82M-1453.91%
AUWHK
46
Neutral
AU$9.64M
16.26%62.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AR9
archTIS Ltd.
0.07
-0.02
-22.22%
DE:4TM
Adveritas Limited
0.05
0.02
66.67%
AU:PRO
Prophecy International Holdings Ltd
0.44
-0.46
-51.11%
AU:BTH
Bigtincan Holdings Ltd
0.22
0.12
120.00%
AU:WHK
WhiteHawk Ltd.
0.01
-0.01
-50.00%

archTIS Ltd. Corporate Events

archTIS Ltd. Q3 FY25 Investor Update: Strengthening Cybersecurity Measures
Apr 30, 2025

archTIS Ltd. has released an investor update for the third quarter of fiscal year 2025, emphasizing its commitment to protecting the world’s most sensitive information. The update highlights the company’s strategic positioning in the cybersecurity market and its ongoing efforts to enhance data security measures, which are crucial for stakeholders relying on robust information protection.

archTIS Limited Announces Quarterly Results Webinar
Apr 24, 2025

archTIS Limited announced a quarterly results investor update webinar scheduled for 30 April 2025, where the company’s financial results will be presented by key executives. This event reflects the company’s ongoing commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.

archTIS Secures $1.3M Software License Renewal with Australian Defence
Apr 9, 2025

archTIS Limited announced a $1.3 million annual software subscription license renewal with the Australian Department of Defence, which includes a 75% increase in user licenses for its Kojensi product. This contract underscores the importance of archTIS’ data-centric zero trust solutions in safeguarding sensitive defense information, contributing to a stable annual recurring revenue and enhancing the company’s industry reputation.

archTIS Secures First Japanese Contract for Trusted Data Integration Platform
Mar 31, 2025

archTIS Limited has secured its first contract in Japan for its Trusted Data Integration (TDI) platform, marking a significant milestone following its acquisition of Direktiv technology. The contract, valued at AUD$390,000 annually, involves a Japanese multinational corporation trialing the TDI platform to enhance secure data services, particularly in regulated industries like the Japanese Ministry of Defence. This development not only signifies archTIS’s expansion into the Japanese market but also underscores the potential global market opportunities for its data security products.

archTIS Expands Zero Trust Capabilities with Direktiv Acquisition
Mar 16, 2025

archTIS Limited has completed the acquisition of Direktiv’s technology assets, employees, and customers, aiming to enhance its zero trust security capabilities. This strategic move will integrate Direktiv’s attribute-based access control and event-driven orchestration platform into archTIS’s offerings, expanding their reach in safeguarding data and managing access controls across enterprise infrastructures. The acquisition is expected to strengthen archTIS’s market position by improving operational efficiency and offering cross-sell opportunities to an expanded customer base. Additionally, the integration of Direktiv’s development teams will support product innovation and accelerate market access, particularly in Australia, the US, and global markets.

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.