Archer Aviation Inc: Mixed Signals in Guru Analysis

Archer Aviation Inc (ACHR) shows promise with a 70% rating in the Price/Sales Investor model, yet fails in long-term EPS growth, free cash flow, and net profit margin, indicating potential concerns for investors looking at earnings stability.

Date: 09-01-2025

AI Rating: 5

Financial Performance Overview

Archer Aviation Inc (ACHR) has received a rating of 70% based on its underlying fundamentals, primarily utilizing the Price/Sales Investor model. This strategy appreciates stocks with low price-to-sales ratios, long-term profit growth, robust free cash flow, and consistent profit margins. The overall rating indicates moderate interest.

Key Financial Metrics

Several metrics are highlighted in the strategy's evaluation:

Price/Sales Ratio: *PASS* - This suggests that the stock is reasonably valued in relation to its sales.
Total Debt/Equity Ratio: *PASS* - A good sign of financial leverage management.
Price/Research Ratio: *PASS* - Indicates effective research relative to stock price.
Long-Term EPS Growth Rate: *FAIL* - A critical failure point suggesting that future earnings growth is not expected to be strong.
Free Cash Per Share: *FAIL* - Negative indication of cash flow performance crucial for supporting operations and investments.
Three-Year Average Net Profit Margin: *FAIL* - Reflects challenges in profitability stability over time.

The failures in long-term EPS growth, free cash flow, and net profit margins raise red flags regarding the company’s capacity to generate sustained profits, which could weigh on investor sentiment. While positive indicators exist, the overall performance suggests a balance of opportunity and risk for potential investors.

Stocks: ACHR