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Archer Materials Limited (AU:AXE)
ASX:AXE

Archer Materials (AXE) AI Stock Analysis

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AU

Archer Materials

(Sydney:AXE)

Rating:53Neutral
Price Target:
AU$0.50
▲(78.57%Upside)
Archer Materials Limited has potential for growth due to its strong balance sheet and revenue growth, but profitability remains a key challenge. Technical analysis shows a neutral outlook with slight bullish momentum. The negative valuation due to lack of profitability is a significant risk factor.

Archer Materials (AXE) vs. iShares MSCI Australia ETF (EWA)

Archer Materials Business Overview & Revenue Model

Company DescriptionArcher Materials Limited, a technology company, engages in development and commercialization of semiconductor devices, and processor chips related to quantum computing and medical diagnostics in Australia. It primarily focuses on the development of qubit processor chip, that operates at room temperature and integrate into modern electronics; and graphene-based lab-on-a-chip technology. The company was formerly known as Archer Exploration Limited and changed its name to Archer Materials Limited in October 2019. Archer Materials Limited was incorporated in 2007 and is based in Adelaide, Australia.
How the Company Makes MoneyArcher Materials Limited makes money primarily through research and development partnerships, grants, and collaborations with industry and academic institutions. The company is focused on advancing its proprietary technologies, such as the development of quantum computing components and biochips, which hold potential for future commercialization and licensing opportunities. Additionally, Archer Materials engages in strategic partnerships and investments to support the commercialization of its technologies, leveraging its expertise in materials science and engineering. While the company is still in the development phase for many of its projects, it aims to generate revenue through licensing agreements and the sale of its innovative solutions in the long term.

Archer Materials Financial Statement Overview

Summary
Archer Materials Limited shows revenue growth, but struggles with profitability due to negative EBIT and net income margins. The balance sheet is strong with low debt, but negative return on equity is concerning. Cash flow is an issue with negative operating cash flows, though free cash flow is improving.
Income Statement
45
Neutral
Archer Materials Limited shows positive revenue growth over the years, with notable increases in total revenue from 2023 to 2024. However, the company has been operating at a loss, with negative EBIT and net income margins, indicating challenges in managing operating expenses and achieving profitability.
Balance Sheet
60
Neutral
The company's balance sheet is relatively stable with a strong equity position and low debt levels, reflected by a favorable debt-to-equity ratio. However, the return on equity is negative due to ongoing losses, which poses a risk to long-term financial health.
Cash Flow
55
Neutral
Cash flow analysis reveals negative operating cash flows, which is concerning. Nonetheless, the company has managed to maintain positive free cash flow growth from 2023 to 2024, suggesting improvements in cash management despite operational challenges.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
2.31M2.14M1.50M973.00K467.66K238.86K
Gross Profit
2.31M2.14M1.44M922.59K435.36K217.30K
EBIT
-5.50M-4.71M-10.40M-14.22M-3.20M-2.93M
EBITDA
-5.94M-5.11M-8.66M-14.97M-3.17M-2.50M
Net Income Common Stockholders
-6.41M-4.80M-9.05M-14.12M-7.84M-2.82M
Balance SheetCash, Cash Equivalents and Short-Term Investments
16.89M18.78M24.19M28.17M8.93M8.11M
Total Assets
19.70M22.89M27.21M30.17M19.69M25.26M
Total Debt
23.14K109.31K9.10K19.75K30.09K0.00
Net Debt
-761.51K-18.10M-23.31M-26.44M-6.21M-8.11M
Total Liabilities
650.37K1.09M1.21M746.23K732.71K717.86K
Stockholders Equity
19.05M21.80M26.00M29.42M18.96M24.54M
Cash FlowFree Cash Flow
-4.39M-4.99M-3.21M-4.44M-2.32M-1.56M
Operating Cash Flow
-4.30M-4.79M-3.03M-4.30M-2.22M-1.50M
Investing Cash Flow
4.77M6.98M2.31M-94.83K-262.25K308.35K
Financing Cash Flow
-170.53K-115.82K64.90K24.62M606.22K8.61M

Archer Materials Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.27
Positive
100DMA
0.31
Negative
200DMA
0.30
Negative
Market Momentum
MACD
<0.01
Negative
RSI
49.16
Neutral
STOCH
33.33
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 0.28 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.27, and below the 200-day MA of 0.30, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
AUAXE
53
Neutral
$70.08M-29.78%23.17%
$293.64M-133.28%
$90.49M-92.68%
$51.97M3.1025.65%
AUWBT
39
Underperform
AU$378.76M-46.55%905.48%10.02%
AUIOD
33
Underperform
AU$83.24M-2298.41%63.21%-13.33%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AXE
Archer Materials
0.28
-0.09
-25.68%
BRCHF
BrainChip Holdings
0.16
0.01
6.67%
FRDSF
4DS Memory Ltd.
0.05
0.00
0.00%
IREHF
Integrated Research Limited
0.24
-0.18
-42.86%
AU:IOD
IODM Ltd.
0.12
-0.07
-36.84%
AU:WBT
Weebit Nano Ltd.
1.86
-0.44
-19.13%

Archer Materials Corporate Events

Archer Materials Updates on Director’s Securities Interest
Jun 1, 2025

Archer Materials Limited announced a change in the director’s interest, specifically regarding Gregory David English’s securities. The change involved the lapse of 5,000,000 unlisted options that were not exercised, impacting the director’s holdings but not altering the overall number of ordinary shares held. This update reflects the company’s ongoing compliance with ASX listing rules and provides transparency to stakeholders about changes in director interests.

Archer Materials Announces Cessation of Securities
Jun 1, 2025

Archer Materials Limited announced the cessation of 12,700,000 securities, specifically options that expired on May 31, 2025, without being exercised or converted. This development may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future growth potential.

Archer Materials Advances At-Home Potassium Monitor Development
May 28, 2025

Archer Materials has achieved a significant milestone by integrating its graphene field effect transistor (gFET) sensors with electrical readout circuitry on a silicon chip, marking a crucial step towards developing an at-home potassium monitor prototype. This advancement, part of a joint development project with Hylid Diagnostics, aims to create a cost-effective, small sensing product for chronic kidney disease testing, with plans to demonstrate initial testing accuracy by early 2026.

Archer Materials Partners with Paragraf for Biochip Development
May 19, 2025

Archer Materials has entered a partnership with Paragraf Limited to advance the development of its Biochip for at-home testing of chronic kidney disease. This collaboration aims to enhance the technical progress of Archer’s blood potassium sensor, focusing on improving sensor accuracy, stability, and robustness. The partnership is expected to generate intellectual property for Archer, strengthening its position in the medical diagnostics industry and supporting future product development and clinical trials.

Archer Materials Extends Partnership with QMUL to Advance Qubit Technology
May 12, 2025

Archer Materials has extended its partnership with Queen Mary University of London to further develop qubit technology, a critical component of their quantum technology program. This collaboration aims to achieve key milestones in qubit development, including the ability to electrically probe and measure single electron spin states, which is essential for the readout and control of qubits. The project, costing approximately A$279,000, is expected to contribute to significant advancements in Archer’s quantum device capabilities, with implications for their positioning in the quantum computing industry.

Archer Materials to Present at Semiconductor Conference 2025
May 6, 2025

Archer Materials Limited announced that its CEO, Simon Ruffell, will present at the Semiconductor Conference 2025, highlighting the company’s advancements in semiconductor technology. This presentation underscores Archer’s commitment to innovation in quantum computing and medical diagnostics, potentially enhancing its position in the semiconductor industry and offering significant implications for its stakeholders.

Archer Materials Appoints New Company Secretary Amid Leadership Transition
May 4, 2025

Archer Materials Limited has announced the appointment of Mr. Jake van der Hoek as the new Company Secretary, effective immediately. Mr. van der Hoek brings nearly a decade of experience in the financial services industry, with expertise in company secretarial duties and ASX Listing Rule requirements. This transition follows the resignation of Mr. Damien Connor, the current Chief Financial Officer and Company Secretary, who will assist in the transition until the end of June 2025. This change in leadership is expected to strengthen Archer’s corporate governance and operational communication with the ASX, potentially impacting its strategic positioning within the semiconductor industry.

Archer Materials Advances Quantum Program with Carbon Nanospheres
Apr 9, 2025

Archer Materials has announced a significant advancement in their quantum program with the development of carbon nanospheres that exhibit long room temperature spin coherence lifetimes, reaching 230 nanoseconds. This breakthrough is expected to enhance the company’s position in the quantum technology industry, potentially offering new opportunities for stakeholders and advancing the capabilities of nanoscale device fabrication.

Archer Materials Partners with Hylid Diagnostics for At-Home Kidney Disease Testing Device
Mar 30, 2025

Archer Materials Limited has entered into a partnership with Canadian company Hylid Diagnostics to develop an at-home testing device for chronic kidney disease as part of its Biochip project. The collaboration will combine Archer’s potassium sensing technology with Hylid’s blood hemolysis sensor technology to create a prototype system that meets stringent accuracy requirements for blood potassium measurements. This partnership aims to bring affordable, lab-quality blood testing to homes, with a focus on the chronic kidney disease market in North America and Europe. The agreement enables both companies to work closely on a detailed work plan, with the initial phase focusing on producing stand-alone hemolysis sensors and integrating them with Archer’s technology.

Archer Materials Appoints Dr. Simon Ruffell as CEO to Drive Semiconductor Innovation
Mar 27, 2025

Archer Materials Limited has appointed Dr. Simon Ruffell as its new CEO, effective immediately. Dr. Ruffell, who previously served as the company’s Chief Technology Officer, brings over 20 years of international experience in technology projects and team management. His expertise, particularly from leading roles at Microsoft and Applied Materials, positions Archer to advance its semiconductor technologies in medical diagnostics, sensing, and computing. This strategic leadership change is expected to enhance Archer’s market positioning and operational capabilities.

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.