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Archer Materials Limited (AU:AXE)
ASX:AXE

Archer Materials (AXE) AI Stock Analysis

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AU:AXE

Archer Materials

(Sydney:AXE)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
AU$0.38
▲(9.43% Upside)
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
Proprietary materials IP
Archer's focus on proprietary materials for qubit devices creates a durable technological moat in an emerging market. Proprietary materials science can establish long-term licensing leverage and technical differentiation with semiconductor partners, supporting sustained commercial opportunity as quantum markets mature.
Licensing-focused business model
A licensing and IP commercialization model is inherently scalable and capital-light versus manufacturing. This allows Archer to monetize inventions via partnerships, grants and collaborations, reducing fixed-capex needs and enabling growth tied to adoption rather than heavy production investments.
Very low financial leverage
Minimal debt provides financial flexibility across long R&D cycles common in advanced materials and quantum tech. Low leverage reduces default risk, preserves capacity to pursue strategic partnerships or absorb development setbacks without immediate refinancing pressure.
Negative Factors
Declining revenue and persistent losses
A near-term structural decline in revenue alongside negative net margins signals commercial traction issues. Persisting losses erode capital and complicate scaling; without sustained revenue recovery the firm may struggle to convert R&D into recurring licensing income over the next several quarters.
Weak cash generation
Declining free cash flow and negative operating cash conversion indicate the business is burning cash to fund operations. This creates reliance on external funding or dilution, limiting the company’s ability to invest in commercialization, hire technical talent, or support long development timelines without additional capital.
Negative returns on equity
A deeply negative ROE reflects that invested capital is not producing profit and signals persistent inefficiency in converting assets to shareholder value. Over the medium term this undermines investor confidence and may constrain access to partnership or funding terms needed for commercialization.

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

Archer Materials Business Overview & Revenue Model

Company DescriptionArcher 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 MoneyArcher 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
35
Negative
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
45
Neutral
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
40
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.06M2.06M2.14M1.50M973.00K467.66K
Gross Profit2.06M2.06M2.14M-53.74K922.59K435.36K
EBITDA-6.94M-6.94M-5.11M-8.66M-14.97M-3.24M
Net Income-6.97M-6.97M-4.80M-9.05M-14.12M-7.84M
Balance Sheet
Total Assets17.47M17.47M22.89M27.21M30.17M19.69M
Cash, Cash Equivalents and Short-Term Investments13.82M13.82M18.78M24.19M28.17M8.93M
Total Debt14.97K14.97K109.31K9.10K19.75K30.09K
Total Liabilities752.16K752.16K1.09M1.21M746.23K732.71K
Stockholders Equity16.72M16.72M21.80M26.00M29.42M18.96M
Cash Flow
Free Cash Flow-4.19M-4.19M-4.99M-3.21M-4.44M-2.32M
Operating Cash Flow-4.19M-4.19M-4.79M-3.03M-4.30M-2.22M
Investing Cash Flow4.11M4.11M6.98M2.31M-94.83K-262.25K
Financing Cash Flow-96.30K-96.30K-115.82K64.90K24.62M606.22K

Archer Materials Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.35
Price Trends
50DMA
0.38
Positive
100DMA
0.36
Positive
200DMA
0.32
Positive
Market Momentum
MACD
<0.01
Positive
RSI
47.52
Neutral
STOCH
14.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AXE, the sentiment is Positive. The current price of 0.35 is below the 20-day moving average (MA) of 0.41, 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 Positive momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 14.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AXE.

Archer Materials Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
AU$61.40M4.5013.76%5.97%-18.05%-51.45%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
AU$1.20B-29.00-50.48%333.23%10.83%
49
Neutral
AU$99.39M-13.69-35.59%-45.74%
48
Neutral
AU$92.03M-31.2544.80%7.69%
43
Neutral
AU$22.67M-2.12-112.59%-67.74%
38
Underperform
AU$368.12M-9.12-149.70%503.29%11.46%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AXE
Archer Materials
0.39
0.00
0.00%
AU:BRN
BrainChip Holdings
0.15
-0.18
-55.38%
AU:4DS
4DS Memory
0.01
-0.02
-66.67%
AU:IRI
Integrated Research Limited
0.34
-0.06
-14.32%
AU:IOD
IODM Ltd.
0.15
<0.01
7.14%
AU:WBT
Weebit Nano Ltd.
5.30
3.03
133.48%

Archer Materials Corporate Events

Archer Materials Releases Q2 FY26 Investor Webinar Presentation
Jan 29, 2026

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
Jan 29, 2026

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
Jan 21, 2026

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
Jan 8, 2026

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
Dec 1, 2025

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
Dec 1, 2025

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
Dec 1, 2025

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.

Archer Materials Announces Director’s Interest Change
Nov 20, 2025

Archer Materials Limited has announced a change in the director’s interest, specifically involving Gregory David English. The change includes the issuance of 660,867 Performance Rights following shareholder approval at the company’s Annual General Meeting. This adjustment in director’s interest reflects the company’s ongoing governance practices and may influence stakeholder perceptions regarding leadership alignment with company goals.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Highlights Innovation at Annual General Meeting
Nov 20, 2025

Archer Materials Limited has announced the presentation to be delivered by its CEO, Dr. Simon Ruffell, at the company’s Annual General Meeting. This announcement underscores Archer’s ongoing commitment to innovation in the semiconductor sector, particularly in quantum computing and medical diagnostics, which could significantly impact its market positioning and stakeholder interests.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Partners with CSIRO to Advance Quantum Machine Learning for Fraud Detection
Nov 9, 2025

Archer Materials has partnered with CSIRO, Australia’s National Science Agency, to develop Quantum Machine Learning (QML) models aimed at enhancing fraud detection in financial transactions. This collaboration, running from November 2025 to November 2026, seeks to leverage CSIRO’s expertise to create innovative QML models that offer improved reliability and speed in identifying fraudulent activities. The project underscores Archer’s strategy to commercialize near-term quantum applications with global impact, potentially extending QML’s applications beyond finance to sectors like healthcare, energy, and cybersecurity.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

Archer Materials Reports Cessation of Performance Rights
Nov 3, 2025

Archer Materials Limited announced the cessation of 123,879 performance rights due to unmet conditions, impacting its issued capital structure. This development may influence the company’s strategic planning and stakeholder perceptions, as performance rights are often linked to employee incentives and company growth targets.

The most recent analyst rating on (AU:AXE) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Archer Materials stock, see the AU:AXE Stock Forecast page.

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: Jan 09, 2026