ASX:AXE

Stock Analysis Report

Executive Summary

Archer Materials Limited, a materials technology company, is developing materials in quantum computing, biotechnology, and lithium-ion batteries; and exploring for minerals in Australia.

Risk Analysis

Earnings have declined by -19.9% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (A$98K)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 3 more risks


Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Archer Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

AXE

0.4%

AU Metals and Mining

0.7%

AU Market


1 Year Return

167.1%

AXE

4.6%

AU Metals and Mining

15.8%

AU Market

Return vs Industry: AXE exceeded the Australian Metals and Mining industry which returned 4.6% over the past year.

Return vs Market: AXE exceeded the Australian Market which returned 15.8% over the past year.


Shareholder returns

AXEIndustryMarket
7 Day2.6%0.4%0.7%
30 Day0%-5.5%0.4%
90 Day50.0%6.5%6.5%
1 Year167.1%167.1%10.0%4.6%21.0%15.8%
3 Year137.8%137.8%51.7%33.0%37.4%19.1%
5 Year85.7%85.7%84.0%40.8%50.7%17.1%

Price Volatility Vs. Market

How volatile is Archer Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Archer Materials undervalued compared to its fair value and its price relative to the market?

2.16x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AXE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AXE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AXE is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: AXE is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AXE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AXE is overvalued based on its PB Ratio (2.2x) compared to the AU Metals and Mining industry average (1.4x).


Next Steps

Future Growth

How is Archer Materials forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-2.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Archer Materials has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Archer Materials performed over the past 5 years?

-19.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXE is currently unprofitable.

Growing Profit Margin: AXE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AXE is unprofitable, and losses have increased over the past 5 years at a rate of -19.9% per year.

Accelerating Growth: Unable to compare AXE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AXE is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (18.2%).


Return on Equity

High ROE: AXE has a negative Return on Equity (-9.79%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Archer Materials's financial position?


Financial Position Analysis

Short Term Liabilities: AXE's short term assets (A$3.8M) exceed its short term liabilities (A$609.5K).

Long Term Liabilities: AXE's short term assets (A$3.8M) exceed its long term liabilities (A$22.5K).


Debt to Equity History and Analysis

Debt Level: AXE is debt free.

Reducing Debt: AXE has not had any debt for past 5 years.


Balance Sheet

Inventory Level: AXE has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AXE's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AXE has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AXE has less than a year of cash runway if free cash flow continues to grow at historical rates of 10.7% each year.


Next Steps

Dividend

What is Archer Materials's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.4%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AXE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AXE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AXE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AXE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.6yrs

Average board tenure


CEO

Mohammad Choucair 0

2.2yrs

Tenure

AU$308,733

Compensation

Dr. Mohammad Choucair, PhD, FRACI FRSN has been Chief Executive Officer of Archer Materials Limited (Formerly, Archer Exploration Limited) since December 1, 2017. Dr. Choucair was the first person in the w ...


CEO Compensation Analysis

Compensation vs Market: Mohammad's total compensation ($USD206.58K) is about average for companies of similar size in the Australian market ($USD253.17K).

Compensation vs Earnings: Mohammad's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Gregory English
Executive Chairman of the Board11.6yrsAU$355.32k0.97% A$402.3k
Alice McCleary
Non-Executive Director13yrsAU$65.57k1.27% A$526.6k
Paul Rix
Non-Executive Director4yrsAU$65.57k0.15% A$60.9k

11.6yrs

Average Tenure

Experienced Board: AXE's board of directors are seasoned and experienced ( 11.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.7%.


Top Shareholders

Company Information

Archer Materials Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Archer Materials Limited
  • Ticker: AXE
  • Exchange: ASX
  • Founded: 2007
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$41.422m
  • Shares outstanding: 212.42m
  • Website: https://www.archerx.com.au

Location

  • Archer Materials Limited
  • 28 Greenhill Road
  • Ground Floor
  • Adelaide
  • South Australia
  • 5034
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
38ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2007
AXEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2007
AXECHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2007
ARRX.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2007

Biography

Archer Materials Limited, a materials technology company, is developing materials in quantum computing, biotechnology, and lithium-ion batteries; and exploring for minerals in Australia. It holds intellectual property, broad-scope of mineral tenements, and in-house expertise, as well as has access to approximately $300 million of R&D infrastructure. 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 10:39
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.