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ARQIT QUANTUM INC (ARQQ) Stock Fundamental Analysis

NASDAQ:ARQQ - Nasdaq - KYG0567U1278 - Common Stock - Currency: USD

25.11  +0.35 (+1.41%)

After market: 25.45 +0.34 (+1.35%)

Fundamental Rating

2

Overall ARQQ gets a fundamental rating of 2 out of 10. We evaluated ARQQ against 283 industry peers in the Software industry. ARQQ scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ARQQ does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year ARQQ has reported negative net income.
In the past year ARQQ has reported a negative cash flow from operations.
ARQQ had negative earnings in 4 of the past 5 years.
In the past 5 years ARQQ always reported negative operating cash flow.
ARQQ Yearly Net Income VS EBIT VS OCF VS FCFARQQ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M -60M

1.2 Ratios

With a Return On Assets value of -204.28%, ARQQ is not doing good in the industry: 94.35% of the companies in the same industry are doing better.
ARQQ's Return On Equity of -461.85% is on the low side compared to the rest of the industry. ARQQ is outperformed by 84.10% of its industry peers.
Industry RankSector Rank
ROA -204.28%
ROE -461.85%
ROIC N/A
ROA(3y)-74.09%
ROA(5y)-45.92%
ROE(3y)-161.53%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ARQQ Yearly ROA, ROE, ROICARQQ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2020 2021 2022 2023 2024 0 -100 -200 -300 -400

1.3 Margins

ARQQ does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
ARQQ Yearly Profit, Operating, Gross MarginsARQQ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2020 2021 2022 2023 2024 0 -5K -10K -15K

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2. Health

2.1 Basic Checks

ARQQ does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ARQQ has been reduced compared to 1 year ago.
The debt/assets ratio for ARQQ has been reduced compared to a year ago.
ARQQ Yearly Shares OutstandingARQQ Yearly Shares OutstandingYearly Shares Outstanding 2020 2021 2022 2023 2024 50M 100M 150M
ARQQ Yearly Total Debt VS Total AssetsARQQ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

2.2 Solvency

ARQQ has an Altman-Z score of 2.06. This is not the best score and indicates that ARQQ is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.06, ARQQ is in line with its industry, outperforming 50.53% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that ARQQ is not too dependend on debt financing.
ARQQ's Debt to Equity ratio of 0.06 is in line compared to the rest of the industry. ARQQ outperforms 56.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF N/A
Altman-Z 2.06
ROIC/WACCN/A
WACC9.26%
ARQQ Yearly LT Debt VS Equity VS FCFARQQ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2020 2021 2022 2023 2024 0 20M -20M 40M -40M 60M

2.3 Liquidity

A Current Ratio of 1.94 indicates that ARQQ should not have too much problems paying its short term obligations.
The Current ratio of ARQQ (1.94) is better than 60.78% of its industry peers.
A Quick Ratio of 1.94 indicates that ARQQ should not have too much problems paying its short term obligations.
ARQQ's Quick ratio of 1.94 is fine compared to the rest of the industry. ARQQ outperforms 61.13% of its industry peers.
Industry RankSector Rank
Current Ratio 1.94
Quick Ratio 1.94
ARQQ Yearly Current Assets VS Current LiabilitesARQQ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2020 2021 2022 2023 2024 20M 40M 60M 80M

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3. Growth

3.1 Past

ARQQ shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1933.96%.
The Revenue for ARQQ has decreased by -54.22% in the past year. This is quite bad
EPS 1Y (TTM)-1933.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-258.49%
Revenue 1Y (TTM)-54.22%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-72.81%

3.2 Future

ARQQ is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.24% yearly.
Based on estimates for the next years, ARQQ will show a very strong growth in Revenue. The Revenue will grow by 783.92% on average per year.
EPS Next Y69.25%
EPS Next 2Y44.18%
EPS Next 3Y28.24%
EPS Next 5YN/A
Revenue Next Year1144.19%
Revenue Next 2Y2230.09%
Revenue Next 3Y783.92%
Revenue Next 5YN/A

3.3 Evolution

ARQQ Yearly Revenue VS EstimatesARQQ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2022 2023 2024 2025 2026 2027 100M 200M 300M
ARQQ Yearly EPS VS EstimatesARQQ Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 0 2 -2 -4 -6

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ARQQ. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for ARQQ. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
ARQQ Price Earnings VS Forward Price EarningsARQQ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ARQQ Per share dataARQQ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -2 -4 -6 -8 -10

4.3 Compensation for Growth

ARQQ's earnings are expected to grow with 28.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.18%
EPS Next 3Y28.24%

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0

5. Dividend

5.1 Amount

No dividends for ARQQ!.
Industry RankSector Rank
Dividend Yield N/A

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ARQIT QUANTUM INC

NASDAQ:ARQQ (5/23/2025, 9:13:52 PM)

After market: 25.45 +0.34 (+1.35%)

25.11

+0.35 (+1.41%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-22 2025-05-22/bmo
Earnings (Next)N/A N/A
Inst Owners7.29%
Inst Owner Change0%
Ins Owners10.66%
Ins Owner ChangeN/A
Market Cap313.88M
Analysts82.86
Price Target53.04 (111.23%)
Short Float %12.99%
Short Ratio1.42
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1071.25
P/FCF N/A
P/OCF N/A
P/B 26.56
P/tB 31.77
EV/EBITDA N/A
EPS(TTM)-10.78
EYN/A
EPS(NY)-1.42
Fwd EYN/A
FCF(TTM)-3
FCFYN/A
OCF(TTM)-2.73
OCFYN/A
SpS0.02
BVpS0.95
TBVpS0.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -204.28%
ROE -461.85%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-74.09%
ROA(5y)-45.92%
ROE(3y)-161.53%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.01
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 1135.84%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.94
Quick Ratio 1.94
Altman-Z 2.06
F-Score3
WACC9.26%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)1331.14%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1933.96%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-258.49%
EPS Next Y69.25%
EPS Next 2Y44.18%
EPS Next 3Y28.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-54.22%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-72.81%
Revenue Next Year1144.19%
Revenue Next 2Y2230.09%
Revenue Next 3Y783.92%
Revenue Next 5YN/A
EBIT growth 1Y35.23%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year38.46%
EBIT Next 3Y63.99%
EBIT Next 5YN/A
FCF growth 1Y23.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.95%
OCF growth 3YN/A
OCF growth 5YN/A