Arqit Quantum Inc. Ordinary Shares (ARQQ)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Arqit trades at $16.84 with a $229.5M market cap. The business sells QuantumCloud, encryption-key software delivered via satellite and terrestrial platforms, with 87 employees. The idea is topical, but I must judge the numbers. FairStock calculations show P/E -5.56, P/B 9.79, ROE -220.21%, and ROCE -95.51%. So the price is high relative to book value while earnings and returns on capital are deeply negative. Debt-to-equity of 0.08 is low, which helps, but the FairStock Piotroski F-Score is 1/9, signaling very weak financial and operating fundamentals. The FairStock Altman Z-Score is 2.94. Revenue growth and profit growth are N/A, and the Lynch category is none because there are only 0 years of filed annual results—need 3. That absence of history matters: without several years of revenue, margins, and cash flow, I cannot estimate normalized earning power. A competitive moat? I see none in the provided figures. Quantum-safe encryption may be a real market, but a story is not pricing power, switching costs, or recurring cash. Valuation offers no margin of safety: P/B near 10 for a business with negative returns and a negative P/E is speculative. The 52-week range of $11.52 to $53.60 and beta of 2.28 tell me the market has treated this as a volatile narrative. Growth trajectory cannot be judged from missing data. Until Arqit shows filed revenue, profits, and returns that cover its cost of capital, I would call it a speculation, not a value investment.

In plain English: Arqit makes cybersecurity software that uses satellites and ground networks to create encryption keys. The business looks weak: it is losing money, does not generate good returns from the money it uses, and has almost no filed operating history. At the recent price of $16.84, the shares do not look cheap compared with the company's accounting value and current earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer