How Key Fundamentals Can Play A Key Role In Your InvestmentsAs popular as Technical Analysis is with the ease of plotting indicators and tools to exhibit trend changes, Fundamental Analysis also plays a role not as simply demonstrated but equally as important!
Now when it comes to Fundamentals, there are a few key financial items that feed investors all the hints they need to potentially make fairly profitable investments and avoid devastatingly horrible mistakes and these are:
1) Income Statement
2) Balance Sheet
3) Cash Flow
The Income Statement retains the most mentioned fundamental metrics like Revenue which is how much money a company makes by selling their goods and services, Operating Expenses like Marketing and Research and Development.
Here I use NYSE:ACHR Income Statement for the example
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Even though Archer Aviation still has yet to post any Revenue, news for the company that's come out lately show a strong demand for NYSE:ACHR product and services:
- Signing a partnership with Korean Air to commercialize its electric air taxis in South Korea, with a potential purchase of up to 100 aircraft.
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- Named exclusive Air Taxi partner for the Los Angeles Sports & Entertainment Commission who will be hosting the 2026 World Cup.
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And with Archer Aviation acquiring Lilium's Patent Portfolio this month adding 300 Patent assets, pushing Archers total patents to exceed 1,000 assets globally, shows rapid expansion potential for the company against competitors!
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Now for the Balance Sheet
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The Balance Sheet can determine how healthy a company is and produces 3 important factors that basically determine a company's Net Worth and they are:
1) Assets - What the company owns
2) Liabilities - What the company owes
3) Equity - Whats left of the Assets once Liabilities are accounted for
We can see that NYSE:ACHR has maintained a stunning balance between their Assets and Liabilities with Assets just about doubling in Q'2 of 2025 from Q'4 2024 and Liabilities all the while staying relatively the same and low!
Meaning less hurdles to jump and obstacles to pay off that could slow the progress of growth in the long-term with great Equity!
Finally, the Cash Flow
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Cash Flow is a companies true way of transparency with showing the flow of cash in and out of the company and shows what's actually generated by the company from doing business and is separated in 3 sections:
1) Operating Activities
2) Investing Activities
3) Financing Activities
Now we can see Operating and Investing activities may not be NYSE:ACHR strong suit yet, but as Financing goes, numbers have continued to rise exponentially since Q'2 of 2024!
This suggests there is a lot of interest in the company from outside lenders and investors!
Like the saying goes, "Sometimes it takes belief in others belief in you before you gain belief in yourself." - Financial Activities could help carry NYSE:ACHR further!
** Remember, nothing in trading no matter how Technical or Fundamental is ever 100% right every time. It takes a combined effort of both Technical and Fundamentals to paint a vivid picture of what a company or asset may be worth or doing. So do your due diligence in research!
Don't Ask What To Invest In, Ask Why Invest In It!!
