Ridge-i Inc. (5572) AI Stock Analysis

• Market Cap: ¥11.80B
• Dividend Yield: N/A
• Average Volume (3M): 60.97K
• Price to Earnings (P/E): 69.4
• Beta (1Y): 1.12
• Revenue Growth: 135.19%
• EPS Growth: 850.62%
• Country: JP
• Employees: 29
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 8.45
• Shares Outstanding: 3,886,780
• 10 Day Avg. Volume: 124,000
• 30 Day Avg. Volume: 60,966
• PEG Ratio: -2.45
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -42.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

Ridge-i Inc. showcases strong financial performance with significant revenue growth and a robust balance sheet, suggesting a solid foundation for future expansion. However, technical indicators show mixed signals with potential overbought conditions, and the high P/E ratio indicates a premium valuation that could limit upside potential. The absence of dividend yield may also deter certain investors. Overall, the stock is positioned for growth, but investors should be cautious of current valuation and market momentum.

Ridge-i Inc. Business Overview & Revenue Model

Company Description

Ridge-i Inc. (5572) is a technology company specializing in artificial intelligence (AI) solutions and services. The company operates in sectors such as software development, data analytics, and IT consultancy, providing innovative AI-driven applications to enhance business operations and decision-making processes for its clients. Ridge-i Inc. focuses on delivering customized AI models, cloud-based solutions, and comprehensive IT support to a variety of industries.

How the Company Makes Money

Ridge-i Inc. generates revenue through the development and deployment of AI solutions and services. The company earns money by offering AI consulting services, where it advises businesses on integrating AI technologies into their operations. Additionally, Ridge-i develops custom AI software and applications tailored to the specific needs of its clients, which is a significant revenue stream. The company also offers subscription-based cloud services, allowing clients to access and utilize its AI tools and platforms. Partnerships with other technology firms and collaborations on large-scale AI projects contribute to its earnings, enhancing its market reach and capabilities.

Ridge-i Inc. Financial Statement Overview

Summary

Ridge-i Inc. exhibits strong financial health with marked improvements in revenue growth, profitability, and cash flow generation. The company maintains a solid balance sheet with minimal debt, providing ample room for strategic investments. While the return on equity is slightly below expectations, the overall financial trajectory is positive, positioning the company well for future growth and resilience in the competitive software application industry.

Income Statement

Ridge-i Inc. has demonstrated impressive revenue growth with a 35.6% increase from 2023 to 2024, indicating strong business expansion. The gross profit margin for 2024 is robust at 68.6%, highlighting effective cost management. The net profit margin has improved significantly to 11.4% from 5.6% in the previous year, showcasing enhanced profitability. Both EBIT and EBITDA margins have strengthened, reflecting efficient operational performance.

Balance Sheet

The company's balance sheet is solid with a high equity ratio of 90.6%, indicating financial stability and low reliance on debt. The return on equity is at 5.7% for 2024, slightly below industry benchmarks. The negative debt-to-equity ratio due to significant cash reserves and minimal debt suggests strong liquidity, though it might reflect under-leveraging, which could limit growth potential.

Cash Flow

Ridge-i Inc. has turned around its cash flow situation, with a positive free cash flow of 342.6 million yen, up from a negative position in 2023. The operating cash flow to net income ratio of 2.9 indicates efficient cash generation relative to earnings. The free cash flow growth rate is remarkable, further strengthening the company’s financial flexibility and potential for reinvestment.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement		Total Revenue
943.61M	1.07B	790.38M	968.52M	419.44M
	Gross Profit
668.40M	735.61M	515.65M	612.58M	191.49M
	EBIT
102.00M	152.74M	70.35M	56.40M	-156.56M
	EBITDA
115.50M	171.49M	74.52M	141.54M	-123.40M
	Net Income Common Stockholders
65.65M	121.70M	44.56M	150.06M	-148.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.91B	1.37B	1.72B	1.38B	1.21B
	Total Assets
2.16B	2.36B	2.06B	1.56B	1.39B
	Total Debt
0.00	-73.08M	0.00	0.00	2.84M
	Net Debt
-1.91B	-1.37B	-1.72B	-1.38B	-1.21B
	Total Liabilities
86.31M	222.89M	73.18M	147.63M	128.91M
	Stockholders Equity
2.08B	2.14B	1.99B	1.41B	1.26B
Cash Flow		Free Cash Flow
0.00	342.58M	-184.98M	173.61M	-81.42M
	Operating Cash Flow
0.00	348.62M	-145.76M	178.19M	-76.46M
	Investing Cash Flow
0.00	-723.02M	-38.26M	-4.58M	-4.96M
	Financing Cash Flow
0.00	24.42M	521.65M	-2.84M	777.16M

Ridge-i Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3035.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5572, the sentiment is Neutral. The current price of 3035 is below the 20-day moving average (MA) of 3127.95, above the 50-day MA of 2714.50, and above the 200-day MA of 2432.16, indicating a neutral trend. The MACD of 179.24 indicates Positive momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 55.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5572.

Ridge-i Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3920	81 Outperform	¥5.15B	12.07		1.29%	13.25%	16826.25%
3923	76 Outperform	¥430.02B	53.21		0.19%	27.33%	91.27%
3697	74 Outperform	¥478.20B	69.64	19.04%	―	20.02%	-5.47%
3996	72 Outperform	¥4.29B	16.66		―	3.20%	99.69%
5572	68 Neutral	¥11.80B	69.42		―	135.19%	850.62%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
3994	53 Neutral	¥260.72B	―	-17.75%	―	28.35%	-2.49%