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Archer Aviation (ACHR)
NYSE:ACHR
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Archer Aviation
(NYSE:ACHR)
43Neutral
Positive Factors
Monetization Strategy
The Launch Edition program could help monetize aircrafts even before FAA certification in jurisdictions that are willing to move faster.
Partnership Opportunities
Archer Aviation's partnership with Anduril on defense programs opens new applications and total addressable markets for its airframe.
Negative Factors
Certification Delays
Timing of FAA certification is unclear and most likely even further delayed.
Archer Aviation (ACHR) vs. S&P 500 (SPY)
Market Cap
$3.69B
Dividend YieldN/A
Average Volume (3M)32.40M
Price to Earnings (P/E)―
Beta (1Y)2.92
Revenue GrowthN/A
EPS Growth17.43%
CountryUS
Employees691
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-1.43
Shares Outstanding542,470,300
10 Day Avg. Volume30,287,384
30 Day Avg. Volume32,401,574
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-8.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.29Price Target Upside80.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Archer Aviation Business Overview & Revenue Model
Company DescriptionArcher Aviation Inc. (ACHR) is an aerospace company specializing in the development of electric vertical takeoff and landing (eVTOL) aircraft. Founded with the vision of transforming urban mobility, Archer Aviation aims to create a sustainable and efficient transportation solution for congested cities. The company's core product is its eVTOL aircraft, designed to provide rapid, safe, and environmentally friendly air travel for short to medium distances.
How the Company Makes MoneyArcher Aviation makes money primarily through the sale and potential leasing of its eVTOL aircraft. The company is focused on developing a viable urban air mobility service, which includes generating revenue from aircraft sales to commercial operators or through direct operation of its own aerial ridesharing service. Key revenue streams also include partnerships with major companies in the aerospace and automotive sectors, such as its collaboration with United Airlines for pre-orders of its aircraft, which provides a future revenue pipeline. Additionally, Archer may explore revenue from aftermarket services, maintenance, and potentially licensing its technology in the future.
Archer Aviation Financial Statement Overview
Summary
Archer Aviation is in a developmental stage with zero revenue and negative EBIT and EBITDA, indicating operational challenges. However, a strong equity base and substantial cash reserves provide a buffer. The balance sheet is solid with a low debt-to-equity ratio, but negative free cash flow and reliance on financing activities highlight sustainability concerns without revenue.Income Statement
Archer Aviation has reported consecutive years of zero revenue, reflecting a pre-revenue stage typical for companies in development phases, especially in aerospace & defense. Persistent negative EBIT and EBITDA highlight operational challenges. The lack of revenue growth indicates no commercial operations yet, affecting profitability metrics.15
Very Negative
Balance Sheet
The company maintains a solid equity base, highlighted by a favorable equity ratio and substantial cash reserves relative to debt. The debt-to-equity ratio remains low, suggesting prudent financial management. However, without revenue, the long-term sustainability of asset growth through equity raises remains uncertain.60
Neutral
Cash Flow
Archer Aviation's cash flow shows significant negative free cash flow, common for companies in heavy R&D phases. Operating cash flow is negative, indicating cash consumption without offsetting income. Financing activities provide substantial cash inflows, crucial for ongoing operations without revenue generation.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -5.80M | -7.70M | -3.03M | -103.00K | EBIT |
| -509.70M | -444.80M | -336.60M | -358.30M | -24.60M | EBITDA |
| -509.70M | -451.60M | -309.60M | -343.77M | -24.40M | Net Income Common Stockholders |
| ― | -457.90M | -317.30M | -359.40M | -25.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 834.50M | 464.60M | 531.20M | 746.90M | 36.60M | Total Assets |
| 1.00B | 554.30M | 573.80M | 768.40M | 41.80M | Total Debt |
| 79.00M | 23.20M | 22.20M | 23.10M | 3.20M | Net Debt |
| -755.50M | -441.40M | -47.20M | -723.80M | -33.40M | Total Liabilities |
| 248.60M | 187.20M | 80.50M | 69.50M | 5.90M | Stockholders Equity |
| 752.60M | 367.10M | 493.30M | 698.90M | 35.90M |
| Cash Flow | Free Cash Flow | |||
| -450.60M | -315.90M | -207.30M | -111.90M | -24.70M | Operating Cash Flow |
| -368.60M | -271.60M | -200.40M | -108.40M | -22.80M | Investing Cash Flow |
| -82.00M | 420.70M | -464.30M | -3.50M | -1.90M | Financing Cash Flow |
| 820.40M | 250.10M | -9.90M | 822.20M | 51.20M |
Archer Aviation Technical Analysis
Negative
6.80
Price Trends
9.24
Negative
7.45
Negative
5.54
Positive
Market Momentum
-0.58
Positive
35.43
Neutral
15.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACHR, the sentiment is Negative. The current price of 6.8 is below the 20-day moving average (MA) of 8.62, below the 50-day MA of 9.24, and above the 200-day MA of 5.54, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 35.43 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACHR.
Archer Aviation Risk Analysis
Archer Aviation disclosed 46 risk factors in its most recent earnings report. Archer Aviation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Archer Aviation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $170.66B | 36.17 | 7.96% | 1.96% | 17.15% | 58.66% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% | |
56 Neutral | $227.89M | ― | -20.73% | ― | 12.04% | -30.50% | |
47 Neutral | $572.92M | 7.68 | 37.69% | ― | 1.00% | -77.16% | |
43 Neutral | $3.69B | ― | -95.88% | ― | ― | 17.43% | |
40 Underperform | $4.75B | ― | -62.47% | ― | -86.82% | -7.68% | |
28 Underperform | $307.77M | ― | 115.25% | ― | ― | 23.26% |
* Industrials Sector Average
Performance Comparison
ACHR
Archer Aviation
6.81
1.67
32.49%
RTX
Raytheon Technologies
128.11
39.49
44.56%
ACIC
American Coastal Insurance
11.95
1.69
16.47%
BLDE
Blade Air Mobility
2.91
0.20
7.38%
JOBY
Joby Aviation
6.03
0.68
12.71%
EVTL
Vertical Aerospace
3.39
-3.29
-49.25%
Archer Aviation Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -14.14% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
Archer Aviation's earnings call reflects a strong strategic position with significant partnerships, a solid financial foundation, and progress in manufacturing and defense. However, challenges remain with FAA certification and high operating expenses.Highlights
Strategic Partnerships and Launch Edition Program
Archer announced a major partnership with Abu Dhabi Aviation as their first Launch Edition partner. This program will deploy Midnight aircraft in early adopter markets worldwide, providing a revenue-generating opportunity and margin-positive contracts valued at over $20 million each.
Strong Financial Position
Archer Aviation exited 2024 with $835 million in cash and cash equivalents, achieving their highest-ever quarter-end cash balance. The company now has over $1 billion in liquidity, bolstered by strong investor demand and additional capital commitments.
Manufacturing and Production Milestones
The completion of Archer's factory in Georgia, ARC, will allow the production of up to 10 Midnight aircraft this year, marking the first eVTOL OEM to scale commercial production of piloted aircraft in the U.S.
Defense Opportunities
Archer partnered with Anduril to develop a hybrid propulsion vertical lift aircraft for defense applications, which could result in multibillion-dollar programs without needing FAA certification. This partnership increases Archer's strategic importance to U.S. defense.
FAA Certification and Global Expansion
Archer is making progress on FAA type certification and has finalized a project-specific certification plan with the UAE, accelerating international efforts to achieve commercialization.
Lowlights
Uncertainties in FAA Certification
While progress continues, Archer faces challenges with the FAA certification process, which has not closed out all industry-wide issues, delaying full certification.
High Operating Expenses
For the full year 2024, Archer's GAAP operating expenses increased by 14% year-over-year to $509.7 million, driven by investments in aircraft development, testing, and manufacturing scale-up.
Company Guidance
In the Archer Aviation Fourth Quarter 2024 Financial Results Conference Call, several key metrics and guidance were highlighted. The company reported a liquidity position of over $1 billion, bolstered by recent equity raises and $820.4 million raised through financing activities in 2024. Non-GAAP operating expenses for Q4 stood at $98.3 million, within the guided range of $95 to $110 million, while GAAP operating expenses were $124.2 million. For full-year 2024, non-GAAP operating expenses increased by 22% to $380.6 million, and GAAP operating expenses rose by 14% to $509.7 million. The company plans to manufacture up to 10 Midnight aircraft in 2025 to support its FAA certification program and international commercial deployments. Furthermore, Archer anticipates adjusted EBITDA for Q1 2025 to be a loss of $95 million to $110 million. The company also announced raising $300 million in January 2025, increasing its financial flexibility for future growth initiatives.Archer Aviation Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Archer Aviation Secures $301.75M in Direct Offering
Positive
Feb 11, 2025
Archer Aviation announced on February 11, 2025, a registered direct offering raising $301.75 million by selling 35.5 million shares of Class A common stock. The funding, involving institutional investors like BlackRock, will be used to advance hybrid aircraft development and other corporate purposes, enhancing Archer’s financial standing and positioning it strategically for defense market opportunities.
Private Placements and FinancingBusiness Operations and Strategy
Archer Aviation Secures $430M for Defense VTOL Development
Positive
Dec 12, 2024
Archer Aviation has entered into subscription agreements to raise $430 million through private placements, with participation from investors such as Stellantis and United Airlines. This funding will support Archer’s collaboration with Anduril Industries to develop a hybrid VTOL aircraft for defense applications, enhancing its market position in the defense sector and strengthening its financial standing.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.