Archer Aviation (ACHR) AI Stock Analysis

• Market Cap: $4.03B
• Dividend Yield: N/A
• Average Volume (3M): 26.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.85
• Revenue Growth: N/A
• EPS Growth: 17.43%
• Country: US
• Employees: 774
• Sector: Industrials
• Sector Strength: 70
• Industry: Aerospace & Defense
• EPS (TTM): -1.43
• Shares Outstanding: 542,470,300
• 10 Day Avg. Volume: 25,979,495
• 30 Day Avg. Volume: 26,737,792
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -11.30
• 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: $12.83
• Price Target Upside: 82.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Archer Aviation's stock score reflects significant risks related to its developmental phase, lack of revenue, and high operating expenses. While strategic partnerships and strong cash reserves are positive, the ongoing challenges with FAA certification and negative cash flow weigh heavily on the overall score.

Positive Factors

Market Expansion

Archer's Launch Edition program offers early revenues in international markets while certification in the US may be progressing slower than expected.

Partnership and Contracts

Archer Aviation announced a $20M contract with Abu Dhabi for the early delivery of its production-series Midnights as part of a new 'Launch Edition' program.

Negative Factors

Financial Concerns

Cash burn is likely to rise in 2025 to support certification, with potential offsets from customers and partners.

Regulatory Challenges

There is a lack of clarity around certification timing in major markets like the US, which ultimately could push out revenue generation and extend cash burn.

Archer Aviation Business Overview & Revenue Model

Company Description

Archer Aviation Inc., an urban air mobility company, engages in designs, develops, manufactures, and operates electric vertical takeoff and landing aircrafts to carry passengers. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc. Archer Aviation Inc. was incorporated in 2018 and is headquartered in Palo Alto, California.

How the Company Makes Money

Archer 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 7.02 is below the 20-day moving average (MA) of 7.58, below the 50-day MA of 8.24, and above the 200-day MA of 6.03, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 8.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACHR.

Archer Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RTX	77 Outperform	$171.47B	36.15	7.96%	1.98%	17.15%	58.66%
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%
BLDE	56 Neutral	$221.48M	―	-11.97%	―	12.04%	-30.50%
ACIC	45 Neutral	$521.25M	7.07	37.69%	―	1.00%	-77.16%
ACHR	44 Neutral	$4.03B	―	-95.88%	―	―	17.43%
JOBY	40 Underperform	$4.93B	―	-62.47%	―	-86.82%	-7.68%
EVTL	25 Underperform	$286.63M	―	115.25%	―	―	23.26%

Archer Aviation Corporate Events

Archer Aviation Appoints New Senior VP of Finance

On March 31, 2025, Archer Aviation Inc. announced the appointment of Harsh Rungta as its Senior Vice President, Finance and Chief Accounting Officer. Mr. Rungta brings extensive experience from his previous roles at Tesla and PricewaterhouseCoopers, and his compensation package includes a base salary, bonuses, and equity awards. This strategic appointment is expected to enhance Archer Aviation’s financial leadership and operational capabilities.

Archer Aviation Secures $301.75M in Direct Offering

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.