Raytech Holding Limited (RAY) AI Stock Analysis

• Market Cap: $8.34M
• Dividend Yield: N/A
• Average Volume (3M): 399.55K
• Price to Earnings (P/E): 4.1
• Beta (1Y): 0.62
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 6
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): N/A
• Shares Outstanding: 2,724,880
• 10 Day Avg. Volume: 112,006
• 30 Day Avg. Volume: 399,549
• PEG Ratio: -22.34
• Price to Book (P/B): 54.20
• Price to Sales (P/S): 52.98
• P/FCF Ratio: 670.58
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $3.50 ▲(32.58% Upside)

The score is driven primarily by strong financial positioning (especially low leverage) and a very low P/E valuation. These positives are tempered by weakening FY2025 margins and weak cash conversion, along with mixed technical signals (short-term momentum but a weak longer-term trend).

Positive Factors

Conservative balance sheet

Near-zero leverage materially lowers financial risk and gives durable flexibility for capital allocation. With limited debt service needs the company can fund working capital, pursue strategic M&A or weather downturns without needing immediate external financing, supporting long-term resilience.

Strong recent revenue growth

Sustained and accelerating top-line growth provides a structural tailwind: it expands scale, supports absorption of fixed costs, and creates optionality for product investment and geographic expansion. If maintained, this trend underpins durable earnings and capacity to reinvest.

Positive free cash flow recovery

Consistent positive free cash flow and a notable rebound increase the company's ability to self-fund growth, acquisitions, and working capital. Over time this strengthens financial independence and lowers reliance on external capital, improving long-term strategic optionality.

Negative Factors

Margin compression in FY2025

A material and persistent margin decline erodes earnings power and return on equity. If driven by structural cost increases or adverse mix, it can reduce cash generation and constrain reinvestment, making it harder to sustain growth without either pricing power or efficiency improvements.

Weak cash conversion

Low operating-cash-to-earnings conversion signals earnings quality and working-capital inefficiencies. Over time this can strain liquidity despite positive accounting profits, limit reinvestment capacity, and increase sensitivity to timing shocks or supplier/customer financing shifts.

Nasdaq compliance and board turnover

A Nasdaq non-compliance notice and recent director resignations create structural governance and market-access risk. Potential delisting or ongoing remediation distracts management, raises cost of capital risk, and could impair the company’s ability to execute longer-term strategic initiatives if unresolved.

Raytech Holding Limited Business Overview & Revenue Model

Company Description

Raytech Holdings Company Limited, through its subsidiary, manufactures electronic personal care and household appliances in Hong Kong. It offers hair care products, such as hair dryers, hair straighteners, and curling iron products; trimmer series, including facial shavers, nose trimmers, and eyebrow trimmers; eyelash curlers; neck care series; nail care series; tooling products; and other personal care appliance series, such as body and facial brushes, reset brushes, callus removers, sonic peeling products, handy fans, and others. It also provides product design and development services. The company was founded in 1993 and is based in Kowloon Bay, Hong Kong with additional location in Zhongshan, China.

How the Company Makes Money

Raytech Holding Limited generates revenue through a multifaceted approach combining product sales, service contracts, and strategic partnerships. The company's key revenue streams include the sale of proprietary technology products and solutions, long-term service agreements with corporate clients, and licensing deals. Additionally, Raytech leverages strategic partnerships with industry leaders to expand its market reach and enhance its product offerings. The conglomerate's ability to adapt to market trends and innovate continuously plays a critical role in sustaining its earnings and competitive advantage.

Raytech Holding Limited Financial Statement Overview

Summary

Strong revenue growth and a very conservative balance sheet (near-zero debt) support the score. Offsetting factors are a notable profitability step-down in FY2025 and weak recent cash conversion versus earnings despite positive free cash flow.

Income Statement

Revenue growth has been strong most recently, with a sharp acceleration in FY2025 (annual) after solid growth in FY2024. Profitability is generally healthy (gross margin ~22–27% and net margin ~10–21%), but margins compressed materially in FY2025 versus FY2024 (net margin fell from ~14.8% to ~10.5% and operating profitability also declined). Earnings remain positive and sizable, but the recent margin step-down is the key watch item.

Balance Sheet

The balance sheet is conservatively positioned with essentially no debt in FY2024–FY2025 and a debt-to-equity ratio at/near zero, which meaningfully lowers financial risk. Equity and assets expanded sharply into FY2025, supporting a stronger capital base. Return on equity remains positive but cooled in FY2025 versus FY2024, suggesting the company is generating less profit per dollar of equity after the balance sheet expanded.

Cash Flow

Cash generation is positive, and free cash flow is positive in each period shown, with a large rebound in FY2025 versus FY2024. However, operating cash flow covered only a modest portion of earnings in FY2024–FY2025 (coverage ratios ~0.58 and ~0.35), pointing to weaker cash conversion recently and potential working-capital or timing effects. This is the clearest area needing improvement despite the recent free-cash-flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.91M	78.74M	66.97M	45.52M	45.11M	31.86M
Gross Profit	18.49M	17.81M	14.90M	1.45M	1.55M	7.91M
EBITDA	9.57M	10.53M	11.36M	7.21M	10.74M	6.73M
Net Income	8.35M	8.27M	9.94M	6.29M	9.44M	5.62M
Balance Sheet
Total Assets	146.38M	94.89M	58.11M	4.21M	2.67M	11.82M
Cash, Cash Equivalents and Short-Term Investments	121.55M	84.85M	35.89M	21.36M	12.29M	3.42M
Total Debt	0.00	0.00	0.00	87.97K	188.82K	0.00
Total Liabilities	28.77M	17.93M	27.04M	1.52M	770.67K	4.86M
Stockholders Equity	117.61M	76.96M	31.08M	21.14M	14.85M	6.96M
Cash Flow
Free Cash Flow	5.14M	6.22M	15.75M	1.40M	1.06M	6.67M
Operating Cash Flow	5.14M	6.22M	15.75M	1.40M	1.06M	6.70M
Investing Cash Flow	0.00	145.17K	846.86K	1.44M	2.20M	-4.67M
Financing Cash Flow	35.19M	42.87M	-2.08M	-3.18M	-1.56M	0.00

Raytech Holding Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.64
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAY, the sentiment is Neutral. The current price of 2.64 is above the 20-day moving average (MA) of 2.19, above the 50-day MA of 2.11, and below the 200-day MA of 19.24, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 69.02 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RAY.

Raytech Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UG	72 Outperform	$29.13M	14.86	17.85%	9.81%	-18.29%	-43.76%
RAY	71 Outperform	$8.34M	4.14	―	―	―	―
AXIL	68 Neutral	$54.42M	49.94	14.37%	―	0.07%	-61.71%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TANH	55 Neutral	$6.02M	-0.06	4.57%	―	-14.59%	-135.25%
TKLF	48 Neutral	$12.87M	2.09	16.79%	―	7.75%	-21.61%
MTEX	46 Neutral	$14.45M	-10.61	-19.54%	―	-9.17%	-4.64%

Raytech Holding Limited Corporate Events

Raytech Holding Files September 2025 Interim Results and Posts Stronger Balance Sheet

On January 15, 2026, Raytech Holding Limited filed a Form 6-K with the U.S. Securities and Exchange Commission furnishing unaudited interim condensed consolidated financial statements and a management discussion and analysis for the period ended September 30, 2025, providing investors with updated visibility into its balance sheet strength and operating performance. The filing shows that as of September 30, 2025, the company’s total assets rose to HKD 146.4 million from HKD 94.9 million at March 31, 2025, driven mainly by an increase in cash and cash equivalents and prepayments, while shareholders’ equity expanded to HKD 117.6 million, supported by higher additional paid-in capital following new ordinary share issuances and a share consolidation effective November 7, 2025; for the six months ended September 30, 2025, Raytech generated HKD 37.6 million in revenue, modestly below the prior-year period, but improved income from operations, highlighting a more profitable cost structure and reinforcing its financial position as it advances its capital markets strategy through an effective F-3 shelf registration.

The most recent analyst rating on (RAY) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Raytech Holding Limited stock, see the RAY Stock Forecast page.

Raytech Holding Revamps Board With New Director Appointments Following January Resignations

On January 2, 2026, Raytech Holding Limited announced that directors Chun Yin Ling and Wan Venus Li resigned from its board, with Li also stepping down from the audit, compensation, and nominating and corporate governance committees; both departing directors stated their resignations did not result from any disagreement with management or the board and that they had no claims against the company or its stakeholders. The board simultaneously appointed Tianfu Yuan as a director and Shibin Wang as an independent director, with Wang joining the audit and compensation committees and chairing the nominating and corporate governance committee; Wang will receive annual cash compensation of $14,400 while Yuan will serve without compensation, and both have entered into indemnity arrangements, moves that refresh Raytech’s board with seasoned financial and capital markets expertise and are intended to maintain compliance with Nasdaq independence requirements and strengthen its governance framework.

The most recent analyst rating on (RAY) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on Raytech Holding Limited stock, see the RAY Stock Forecast page.

Raytech Holding Agrees US$6.1 Million Acquisition of Worry Free Group (HK) Limited

On December 23, 2025, Raytech Innovation Limited, a wholly owned subsidiary of Raytech Holding Limited, entered into an agreement to acquire 100% of the issued share capital of Worry Free Group (HK) Limited from vendor Wang Yafeng for a total consideration of US$6.099 million. The consideration will be settled via US$4.099 million in cash upon completion and a US$2 million promissory note bearing 2% annual interest and maturing two years after issuance, with completion subject to customary closing conditions, after which Worry Free Group (HK) Limited will become an indirect wholly owned subsidiary of Raytech Holding Limited, further consolidating the group’s Hong Kong corporate structure and potentially broadening its operational base in the region.

Raytech Holding Limited Announces 16-for-1 Share Consolidation to Maintain Nasdaq Listing

On October 17, 2025, Raytech Holding Limited’s board approved a 16-for-1 share consolidation to be effective on November 7, 2025. This move aims to help the company comply with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the Nasdaq Capital Market. The share consolidation will not alter shareholders’ percentage ownership, except for minor adjustments due to fractional shares, which will be rounded up.

Raytech Holding Faces Nasdaq Compliance Challenge

On October 14, 2025, Raytech Holding Limited received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, as its shares traded below $1.00 for 30 consecutive business days. The company has until April 13, 2026, to regain compliance by ensuring its share price meets the minimum bid price for at least ten consecutive business days. If compliance is not achieved by the deadline, Raytech may qualify for an additional 180-day grace period, provided it meets other listing standards and indicates its plan to rectify the deficiency, potentially through a reverse stock split.