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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:55Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
archTIS Ltd. shows significant revenue growth, reflected in its financial performance score, yet faces profitability and valuation challenges due to negative net profit and P/E ratio. Technical analysis provides a positive outlook with strong price trends, balancing financial and valuation weaknesses.

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.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue6.90M9.80M6.37M4.64M4.63M548.75K
Gross Profit5.31M5.85M-1.44M-508.10K1.36M-635.84K
EBITDA-5.82M263.85K-10.61M-10.33M-4.76M-2.75M
Net Income-4.17M-4.26M-8.24M-9.45M-2.99M-3.73M
Balance Sheet
Total Assets24.72M16.62M24.88M26.89M30.29M8.92M
Cash, Cash Equivalents and Short-Term Investments6.76M2.92M3.25M6.52M12.74M2.43M
Total Debt886.42K1.17M780.36K985.76K1.08M1.36M
Total Liabilities7.54M7.17M11.44M7.69M10.65M2.11M
Stockholders Equity17.19M9.44M13.44M19.20M19.65M6.81M
Cash Flow
Free Cash Flow316.46K-1.10M-5.07M-10.60M-568.46K-2.84M
Operating Cash Flow3.06M1.64M-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 Price0.20
Price Trends
50DMA
0.11
Positive
100DMA
0.09
Positive
200DMA
0.08
Positive
Market Momentum
MACD
0.04
Negative
RSI
57.58
Neutral
STOCH
67.59
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 0.2 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.11, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 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 (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUICE
62
Neutral
AU$45.74M-228.61%-36.24%-2.67%
59
Neutral
€3.24B12.44-9.91%2.79%2.38%-49.53%
AUAR9
55
Neutral
AU$57.85M-45.31%-28.80%32.87%
AUPRO
51
Neutral
AU$29.50M-52.29%4.10%-115.05%
AUXF1
50
Neutral
AU$35.21M
0.40%66.36%
AUSIS
39
Underperform
AU$5.89M
-8.86%38.46%
AUNVU
35
Underperform
AU$40.60M-243.28%-32.45%33.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AR9
archTIS Ltd.
0.20
0.12
150.00%
AU:PRO
Prophecy International Holdings Ltd
0.40
-0.50
-55.56%
AU:XF1
Xref Ltd
0.16
-0.02
-11.11%
AU:SIS
Simble Solutions Ltd.
AU:NVU
Nanoveu Ltd.
0.05
0.03
150.00%
AU:ICE
iCetana Ltd.
0.09
0.07
350.00%

archTIS Ltd. Corporate Events

archTIS Issues New Shares, Affirms Regulatory Compliance
Jul 4, 2025

archTIS Limited has announced the issuance of fully paid ordinary shares without disclosure to investors under Part 6D.2 of the Corporations Act. The company confirms compliance with relevant provisions of the Corporations Act and states there is no excluded information that investors would reasonably expect in a disclosure document. This move reflects archTIS’s ongoing commitment to maintaining transparency and regulatory compliance, potentially strengthening its market position and reassuring stakeholders of its operational integrity.

archTIS Ltd Announces $7.5 Million Capital Raising for U.S. Expansion
Jul 1, 2025

archTIS Ltd is raising approximately $7.5 million through a Placement to support its U.S. expansion, strategic partnerships, and product development. The company has demonstrated strong operational performance with significant revenue growth and positive operating cash flow, positioning itself for further growth and expansion in the secure data collaboration industry.

archTIS Ltd. Announces Proposed Issue of 50 Million Securities
Jul 1, 2025

archTIS Ltd. has announced a proposed issue of 50,000,000 ordinary fully paid securities, scheduled for issuance on July 7, 2025. This move is part of a placement or other type of issue, potentially impacting the company’s market positioning by enhancing its capital base and providing additional resources for growth and development.

archTIS Secures A$7.5 Million for U.S. Defense Market Expansion and Innovation
Jul 1, 2025

archTIS Limited has secured a A$7.5 million placement to drive its growth across the U.S. defense market, enhance strategic alliances, and innovate secure product offerings. The funds will be used to scale U.S. operations, deepen partnerships, and advance product development, positioning the company to capitalize on the increasing demand for secure data-sharing platforms.

archTIS Ltd. Announces Cessation of Securities Due to Unmet Conditions
Jun 30, 2025

archTIS Ltd. announced the cessation of certain securities due to unmet conditions, affecting performance rights and options set to expire in the coming years. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s future performance and strategic direction.

archTIS Ltd. Issues New Performance Rights to Employees
Jun 30, 2025

archTIS Ltd. announced the issuance of new performance rights under an employee incentive scheme, with a total of 14,398,362 unquoted securities issued. This move is likely aimed at aligning employee interests with company performance, potentially enhancing operational efficiency and stakeholder value.

archTIS Limited Director’s Interest Update
Jun 30, 2025

archTIS Limited announced a change in the interest of Director Mr. Daniel Lai, who has acquired 189,336 fully paid ordinary shares due to the vesting of performance rights. This change reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting investor confidence positively.

archTIS Ltd. Initiates Trading Halt Ahead of Capital Raising Announcement
Jun 30, 2025

archTIS Ltd. has requested a trading halt on its securities pending an announcement related to a capital raising. This move indicates a potential strategic financial maneuver, which could impact the company’s market position and stakeholder interests. The halt will remain in place until the announcement is made or normal trading resumes on July 2, 2025.

archTIS Limited Announces Investor Webinar for June 2025
Jun 25, 2025

archTIS Limited announced an upcoming Investor Webinar scheduled for June 26, 2025, where CEO Daniel Lai will provide a company update and discuss recent announcements. This event highlights the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning by reinforcing investor confidence and showcasing its strategic direction.

archTIS Clarifies Share Trading Activity Amid New Defense Contracts
Jun 24, 2025

archTIS Limited responded to an ASX query regarding recent trading activity in its shares, clarifying that there is no undisclosed information that could explain the trading fluctuations. The company highlighted recent contracts in the US and UK defense markets, which, despite being of relatively small value, have been recognized by investors as significant opportunities for expansion in these markets. This recognition has been echoed by independent fund managers and investor forums, leading to increased share price activity, primarily due to a large shareholder’s internal trading.

archTIS Ltd. Securities Suspended Amid Market Concerns
Jun 18, 2025

archTIS Ltd.’s securities have been suspended from quotation by the ASX to prevent a disorderly or uninformed market, following a trading halt initiated to ensure fairness and transparency. This suspension reflects regulatory scrutiny and may impact stakeholder confidence, highlighting the importance of compliance and market stability for the company’s operations.

archTIS Secures UK Defense Contract, Expands Global Reach
Jun 18, 2025

archTIS Limited has successfully entered the UK market by securing a 3-year contract with a UK-based aerospace and defense corporation for its NC Protect product. This contract, valued at A$263,185 for 400 users, follows a recent win with the U.S. Department of Defense, highlighting the growing global demand for archTIS’s data-centric security solutions. The implementation is expected to serve as a global model for Microsoft 365 deployment across an enterprise of over 100,000 employees, reinforcing archTIS’s position as a trusted partner in safeguarding sensitive information across global defense organizations.

archTIS Secures Major U.S. DoD Contract for NC Protect
Jun 15, 2025

archTIS Limited has achieved a significant milestone by securing a contract with a U.S. Department of Defense agency for its NC Protect solution, initially covering 1,000 users. This contract is expected to expand to 150,000 users, significantly increasing the global user base and driving growth in FY26. The deal underscores archTIS’s capability to meet stringent security standards and positions the company for future opportunities in the U.S. defense market, highlighting its commitment to providing cutting-edge data security solutions.

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.

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: Jul 05, 2025