archTIS Ltd. (AR9) AI Stock Analysis

• Market Cap: AU$19.29M
• Dividend Yield: N/A
• Average Volume (3M): 152.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -28.80%
• EPS Growth: 32.87%
• Country: AU
• Employees: 23
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): >-0.01
• Shares Outstanding: 287,967,160
• 10 Day Avg. Volume: 115,538
• 30 Day Avg. Volume: 152,349
• PEG Ratio: -1.72
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 60.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• 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. Business Overview & Revenue Model

Company Description

archTIS 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 Money

archTIS 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

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

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

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.90M	9.80M	6.37M	4.64M	4.63M	548.75K
	Gross Profit
5.31M	5.85M	-1.44M	-508.10K	1.36M	-635.84K
	EBIT
-8.12M	-8.71M	-10.93M	-10.80M	-4.89M	-4.31M
	EBITDA
-5.82M	263.85K	-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 Sheet		Cash, Cash Equivalents and Short-Term Investments
6.76M	2.92M	3.25M	6.52M	12.74M	2.43M
	Total Assets
24.72M	16.62M	24.88M	26.89M	30.29M	8.92M
	Total Debt
886.42K	1.17M	780.36K	985.76K	1.08M	1.36M
	Net Debt
-5.88M	-1.75M	-2.46M	-5.53M	-11.66M	-1.07M
	Total Liabilities
7.54M	7.17M	11.44M	7.69M	10.65M	2.11M
	Stockholders Equity
17.19M	9.44M	13.44M	19.20M	19.65M	6.81M
Cash Flow		Free Cash Flow
316.46K	-1.10M	-5.07M	-10.60M	-568.46K	-2.84M
	Operating Cash Flow
3.06M	1.64M	-4.96M	-10.57M	-464.68K	-2.84M
	Investing Cash Flow
-4.33M	-2.74M	-40.08K	-1.78M	227.28K	-3.64K
	Financing Cash Flow
-86.37K	773.36K	1.73M	6.14M	10.56M	2.01M

archTIS Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
BTH	55 Neutral	$176.66M	―	-33.75%	―	-11.19%	-174.51%
PRO	53 Neutral	AU$33.19M	―	-52.29%	―	4.10%	-115.05%
AR9	41 Neutral	AU$19.29M	―	-45.31%	―	-28.80%	32.87%
4TM		€44.82M	―	-1453.91%	―	―	―
WHK	46 Neutral	AU$9.64M	―		―	16.26%	62.58%

archTIS Ltd. Corporate Events

archTIS Ltd. Q3 FY25 Investor Update: Strengthening Cybersecurity Measures

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

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

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

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

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.