Archer Materials (AXE) AI Stock Analysis

• Market Cap: AU$94.29M
• Dividend Yield: N/A
• Average Volume (3M): 299.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: N/A
• EPS Growth: -45.74%
• Country: AU
• Employees: 8
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): N/A
• Shares Outstanding: 254,847,020
• 10 Day Avg. Volume: 127,203
• 30 Day Avg. Volume: 299,084
• PEG Ratio: -0.17
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 26.62
• P/FCF Ratio: -13.05
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: AU$0.36 ▲(3.71% Upside)
• Action: Reiterated Date: 01/09/26
• Date: Action: Reiterated 01/09/26

The score is held down primarily by weak fundamentals (declining revenue, persistent losses, and pressured cash flow), only partly offset by a strong technical uptrend (price above key moving averages with positive momentum). Valuation support is limited due to a negative P/E and no dividend yield provided.

Positive Factors

Conservative capital structure

Extremely low leverage provides durable financial flexibility: it reduces insolvency risk, preserves borrowing capacity for R&D or commercialization, and gives management time to execute long-term projects without immediate pressure from creditors or heavy interest burdens.

Strong product-level gross margins

A 100% gross margin indicates very strong unit economics at the product or IP level. If fixed operating costs and inefficiencies are reduced as the business scales, this margin profile supports sustainable profitability and attractive long-term operating leverage.

R&D-to-commercialisation business model

A strategy centered on taking lab innovations to prototypes and licensing/collaboration monetisation reduces capital intensity and concentrates on IP value capture. This model can scale revenue through partners and licensing without equivalent increases in fixed assets.

Negative Factors

Declining revenue

A near‑11% revenue decline signals weakening commercial traction for the company's technologies. Prolonged revenue contraction undermines economies of scale, delays breakeven, and reduces the ability to reinvest in R&D or fund commercialization without external capital.

Persistent unprofitability and poor returns

Ongoing negative margins and deeply negative ROE indicate the company is destroying shareholder value. Persistent losses constrain reinvestment capacity, weaken investor confidence, and demonstrate substantive operating inefficiencies that must be addressed for durable profitability.

Weak cash generation

Declining free cash flow and negative operating cash conversion point to cash burn and limited internal funding for productisation. That increases reliance on external financing, heightening dilution risk and potentially slowing or derailing long-term commercialisation plans.

Archer Materials Business Overview & Revenue Model

Company Description

Archer Materials Limited (ASX: AXE) is an Australian technology company focused on the development of advanced materials for the semiconductor industry. The company specializes in the design and development of qubit devices for quantum computing, leveraging its proprietary materials science to create innovative solutions. Archer operates primarily in the tech and materials sectors, with a core emphasis on next-generation computing technologies and the commercialization of its intellectual property.

How the Company Makes Money

Archer Materials generates revenue primarily through the licensing of its proprietary technologies and intellectual property related to semiconductor materials and quantum computing. The company aims to establish partnerships with major players in the technology and semiconductor sectors to facilitate the adoption of its innovations. Additionally, Archer may engage in research and development collaborations, government grants, and funding initiatives to support its projects. The company's ability to monetize its advancements in materials science and secure strategic partnerships is crucial to its revenue model.

Archer Materials Financial Statement Overview

Summary

Financial performance is weak: revenue declined (-10.98%) and profitability remains challenged with negative net margin (-3.39%) alongside negative EBIT/EBITDA margins. Balance sheet leverage is minimal (debt-to-equity 0.0009), but shareholder returns are poor (ROE -41.70%). Cash flow trends are also pressured with negative free cash flow growth (-4.38%) and a negative operating cash flow to net income ratio.

Income Statement

Archer Materials has experienced declining revenue growth, with a negative growth rate of -10.98% in the latest year. The company has consistently reported negative net profit margins, with the latest at -3.39%, indicating ongoing profitability challenges. Despite a high gross profit margin of 100%, the negative EBIT and EBITDA margins reflect significant operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is very low at 0.0009, suggesting minimal leverage and a conservative capital structure. However, the return on equity is negative at -41.70%, indicating that the company is not generating returns for shareholders. The equity ratio is relatively stable, showing a strong equity base compared to total assets.

Cash Flow

Archer Materials has a negative free cash flow growth rate of -4.38%, indicating declining cash generation capabilities. The operating cash flow to net income ratio is negative, reflecting cash flow challenges. However, the free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is covering net income.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.06M	2.14M	1.50M	973.00K	467.66K
Gross Profit	2.06M	2.14M	-53.74K	922.59K	435.36K
EBITDA	-6.94M	-5.11M	-8.66M	-14.97M	-3.24M
Net Income	-6.97M	-4.80M	-9.05M	-14.12M	-7.84M
Balance Sheet
Total Assets	17.47M	22.89M	27.21M	30.17M	19.69M
Cash, Cash Equivalents and Short-Term Investments	13.82M	18.78M	24.19M	28.17M	8.93M
Total Debt	14.97K	109.31K	9.10K	19.75K	30.09K
Total Liabilities	752.16K	1.09M	1.21M	746.23K	732.71K
Stockholders Equity	16.72M	21.80M	26.00M	29.42M	18.96M
Cash Flow
Free Cash Flow	-4.19M	-4.99M	-3.21M	-4.44M	-2.32M
Operating Cash Flow	-4.19M	-4.79M	-3.03M	-4.30M	-2.22M
Investing Cash Flow	4.11M	6.98M	2.31M	-94.83K	-262.25K
Financing Cash Flow	-96.30K	-115.82K	64.90K	24.62M	606.22K

Archer Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AXE, the sentiment is Negative. The current price of 0.35 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.38, and above the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.67 is Neutral, neither overbought nor oversold. The STOCH value of 56.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AXE.

Archer Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRI	66 Neutral	AU$56.89M	4.17	13.76%	5.97%	-18.05%	-51.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WBT	59 Neutral	AU$1.04B	-25.87	-50.48%	―	333.23%	10.83%
AXE	49 Neutral	AU$94.29M	-13.87	-35.59%	―	―	-45.74%
IOD	47 Neutral	AU$111.07M	-37.50	―	―	44.80%	7.69%
4DS	43 Neutral	AU$24.73M	-2.31	-112.59%	―	―	-67.74%
BRN	38 Underperform	AU$312.35M	-7.94	-149.70%	―	503.29%	11.46%

Archer Materials Corporate Events

Archer Materials Releases Q2 FY26 Investor Webinar Presentation

Archer Materials has released the presentation that its CEO Simon Ruffell will deliver during an investor webinar scheduled for 11:00am AEDT on 29 January 2026, which will be followed by a Q&A session. The event underlines the company’s ongoing investor engagement and provides a platform to update shareholders on its Q2 FY26 progress and strategic developments in quantum and semiconductor technologies.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Advances Quantum Qubit and Biochip Milestones, Expands Strategic Partnerships

In the December quarter of FY26, Archer Materials reported significant technical and strategic progress across its core quantum and biochip programs, including improved quantum state readout for its carbon-based qubit materials, successful synthesis of this material on a one‑inch silicon wafer, and demonstration of room-temperature spin lifetimes that compare favourably with leading quantum platforms. The company broadened its ecosystem by signing a collaboration with Emergence Quantum to explore graphene and carbon-based technologies for next-generation quantum and electronic devices, entered an agreement with CSIRO to develop quantum machine learning models for enhanced financial fraud detection, and, in its Biochip program, achieved clinical-standard accuracy for silicon-based blood potassium testing devices in collaboration with IMEC, a shift that could lower costs, de-risk supply chains and accelerate regulatory and commercial pathways; Archer ended the quarter with $10.3 million in cash (excluding a subsequent $2.1 million R&D tax rebate) and strengthened its board with the appointment of experienced health industry executive Andrew Just as a non-executive director.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Schedules Investor Webinar for December Quarter Update

Archer Materials has announced it will host an investor webinar to deliver its quarterly update for the period ended 31 December 2025, with CEO Simon Ruffell presenting and taking questions from participants. The event underscores the company’s ongoing engagement with investors as it advances its portfolio of quantum and semiconductor technologies, providing stakeholders with an opportunity to gain insights into recent developments and the company’s strategic progress.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Targets 2026 as Inflection Year for Quantum and Biochip Commercialisation

Archer Materials has reported significant technical progress across its quantum computing, quantum sensing and Biochip programs in 2025 and laid out a commercial roadmap for 2026. The company advanced its carbon-based quantum technology by demonstrating electrical gating in single electron transistor devices, improving electron spin lifetimes to 800 nanoseconds, and achieving qubit control through new resonator circuits, collectively de-risking the path toward a functional qubit demonstration targeted for early 2026 and positioning the platform for scalable manufacturing. Archer also expanded its quantum sensing and quantum machine learning initiatives, including a fraud-detection project for financial transactions that could be adapted to broader applications. In parallel, its Biochip program for blood potassium monitoring reached precision levels aligned with clinical lab standards and progressed toward manufacturable silicon- and graphene-based prototypes with partners such as IMEC, supporting future external trials and potential expansion into additional biomarkers. Management frames 2026 as an inflection year in which all core programs are expected to move from research-led development toward product demonstrations and commercial partnerships, signalling a shift toward real-world deployments and active commercial engagement.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.39 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Announces Director Change and Securities Update

Archer Materials Limited announced that Kenneth Graham Williams has ceased to be a director as of December 1, 2025. Williams held 3,000,000 unlisted options through the KG & PC Williams Family Trust, which are exercisable at $0.5344 each and expire on June 30, 2028. This change in directorship may impact the company’s governance and strategic direction.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.39 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Appoints New Director to Strengthen Leadership

Archer Materials Limited has announced the appointment of Andrew Ian Just as a new director, effective from December 1, 2025. This appointment is part of the company’s strategic efforts to strengthen its leadership team, although the new director currently holds no securities or interests in the company. This move is expected to enhance Archer Materials’ governance and potentially influence its strategic direction and stakeholder relations.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.39 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Announces Board Changes with New Appointment and Retirement

Archer Materials Limited has announced changes to its board with the appointment of Andrew Just as a Non-Executive Director and the retirement of Ken Williams. Andrew Just brings extensive experience in the medical device and healthcare industries, which aligns with Archer’s strategic growth in medical diagnostics technologies. The board expressed gratitude to Ken Williams for his significant contributions over the past five years, including overseeing the company’s transition from mineral exploration to a quantum and medical device company.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.39 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.