Archer Materials (AXE) AI Stock Analysis

• Market Cap: AU$70.08M
• Dividend Yield: N/A
• Average Volume (3M): 258.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: N/A
• EPS Growth: 23.17%
• Country: AU
• Employees: 8
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): -0.02
• Shares Outstanding: 254,847,020
• 10 Day Avg. Volume: 181,238
• 30 Day Avg. Volume: 258,898
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: AU$0.50 ▲(78.57% Upside)

The overall stock score is primarily influenced by Archer Materials Limited's stable balance sheet and short-term positive technical indicators. However, the company's ongoing profitability challenges and poor valuation metrics weigh negatively on the score. Addressing profitability issues could enhance financial health and stock appeal.

Archer Materials Business Overview & Revenue Model

Company Description

Archer 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 Money

Archer Materials generates revenue through the development and commercialization of its proprietary technologies. The company focuses on creating intellectual property in the realm of quantum computing and biosensor technology, which can be monetized through partnerships, collaborations, and licensing agreements with other technology firms and research institutions. Key revenue streams include the sale of developed materials and technologies, as well as potential future earnings from licensing its intellectual property in quantum computing. Additionally, Archer’s partnerships with research organizations and participation in government-funded projects contribute to its revenue and development capabilities.

Archer Materials Financial Statement Overview

Summary

Archer Materials Limited shows revenue growth but struggles with profitability and operational efficiency. The balance sheet is solid with low leverage, but cash flow management needs improvement for financial sustainability.

Income Statement

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

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

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.14M	1.50M	973.00K	467.66K	238.86K
Gross Profit	2.14M	1.45M	922.59K	435.36K	217.30K
EBITDA	-5.11M	-8.66M	-14.97M	-3.17M	-2.50M
Net Income	-4.80M	-9.05M	-14.12M	-7.84M	-2.82M
Balance Sheet
Total Assets	22.89M	27.21M	30.17M	19.69M	25.26M
Cash, Cash Equivalents and Short-Term Investments	18.78M	24.19M	28.17M	8.93M	8.11M
Total Debt	109.31K	9.10K	19.75K	30.09K	0.00
Total Liabilities	1.09M	1.21M	746.23K	732.71K	717.86K
Stockholders Equity	21.80M	26.00M	29.42M	18.96M	24.54M
Cash Flow
Free Cash Flow	-4.99M	-3.21M	-4.44M	-2.32M	-1.56M
Operating Cash Flow	-4.79M	-3.03M	-4.30M	-2.22M	-1.50M
Investing Cash Flow	6.98M	2.31M	-94.83K	-262.25K	308.35K
Financing Cash Flow	-115.82K	64.90K	24.62M	606.22K	8.61M

Archer Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.27, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 is Positive, 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
Sector *	63 Neutral	€2.30B	27.69	4.40%	2.80%	4.53%	-66.68%
AXE	54 Neutral	AU$70.08M	―	-29.78%	―	―	23.17%
BRCHF	―	$261.18M	―	-133.28%	―	―	―
FRDSF	―	$37.60M	―	-92.68%	―	―	―
IREHF	―	$46.81M	3.47	25.65%	―	―	―
WBT	39 Underperform	AU$500.30M	―	-46.55%	―	905.48%	10.02%
IOD	33 Underperform	AU$67.82M	―	-2298.41%	―	63.21%	-13.33%

Archer Materials Corporate Events

Archer Materials Advances Quantum and Biochip Technologies

Archer Materials has made significant progress in its core technologies, particularly in the quantum computing and medical diagnostics sectors. The company has advanced its 12CQ quantum project by extending its collaboration with Queen Mary University of London, aiming to demonstrate a qubit by next year. In the medical diagnostics field, Archer has developed a silicon chip integrating Biochip gFET with electrical readout circuitry, moving closer to a hand-held blood testing device. The company has also established an advisory committee to support technological advancements and commercialization efforts, maintaining a strong cash position of $13.7 million with no debt.

Archer Materials Advances Quantum Technology with Cryogenic TMR Sensor Breakthrough

Archer Materials has successfully demonstrated the functionality of its tunnel magnetoresistance (TMR) sensor technology at cryogenic temperatures, which is a significant milestone for its 12CQ quantum project. This development enhances quantum readout capabilities and noise characterization in low-temperature environments, potentially expanding the use of TMR sensors across various quantum computing platforms and advanced sensing markets. The achievement could lead to improved noise mitigation strategies and better quantum coherence times, supporting the growth of next-generation quantum computing and sensing technologies.

Archer Materials Advances Quantum Tech with Key Breakthrough

Archer Materials has achieved a significant milestone in quantum technology by demonstrating electrical detection of electron spin resonance on its carbon qubit material. This breakthrough, in collaboration with École Polytechnique Fédérale de Lausanne, simplifies hardware and enables smaller, integrated devices compatible with conventional semiconductor electronics, paving the way for high-sensitivity quantum magnetic sensors and practical quantum computing applications.

Archer Materials Updates on Director’s Securities Interest

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

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

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

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

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

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

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.