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ARQQ

BEARISH
$13.63 Live
Arqit Quantum Inc. · NASDAQ
Target $60.0 (+340.2%)
$11.0 52W Range $62.0

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AI Analysis

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Confidence
87%
ARQQ's Piotroski F-Score of 4/9 indicates weak financial health, with significant red flags in profitability and cash flow despite a strong current ratio and low debt. The company exhibits extreme negative operating margins (-6,589%) and ROE (-181.44%), signaling severe operational inefficiency. Although the Graham Number and intrinsic value are unavailable, the stock trades at an astronomical Price/Sales of 402.52, far exceeding sector averages and suggesting extreme overvaluation. The 52-week price drop of 94.3% and persistent negative earnings underscore deep market skepticism. Analysts have only one rating with a $60 target, but the stock remains vastly overpriced relative to fundamentals.

Key Strengths

Low debt-to-equity ratio (0.03) indicating minimal financial leverage
Strong current and quick ratios (2.69 and 2.63) suggesting solid short-term liquidity
Positive gross margin (37.74%) indicating some pricing power or cost control in core operations
High insider sentiment (40/100) suggesting some confidence among insiders
Significant 1-year price appreciation (+5.1%) despite long-term decline, indicating short-term momentum

Key Risks

Piotroski F-Score of 4/9 indicates weak financial health and deteriorating fundamentals
Negative operating margin (-6,589%) and ROE (-181.44%) reflect severe unprofitability
Price/Sales ratio of 402.52 is astronomically high, indicating extreme overvaluation
No available cash flow or earnings data, raising concerns about sustainability
52-week price drop of 94.3% and 6-month decline of 59.6% signal persistent market skepticism

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