Ridgetech (RDGT) AI Stock Analysis

• Market Cap: $37.67M
• Dividend Yield: N/A
• Average Volume (3M): 35.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -22.37%
• EPS Growth: 63.14%
• Country: US
• Employees: 939
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 18,285,639
• 10 Day Avg. Volume: 73,880
• 30 Day Avg. Volume: 35,985
• PEG Ratio: 0.01
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -1.02
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: -0.23
• Enterprise Value/Ebitda: 0.29
• 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: 54 Neutral
• Price Target: $2.50 ▼(-6.02% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

Overall score is held back primarily by weak financial quality (revenue decline, thin gross margin, weak operating margins, and poor cash conversion) despite improved profitability. Technicals are mixed/neutral with a negative MACD, while valuation is a relative positive due to the very low P/E.

Positive Factors

Improved profitability & ROE

Achieving a positive net margin and a 34.4% ROE reflects a structural improvement in returns and operational discipline. Sustained margins and high ROE provide capacity to reinvest, support debt servicing, and improve shareholder returns over the next several quarters if management maintains cost controls.

Reduced leverage

A lower debt-to-equity ratio (0.35) signals durable improvement in solvency and interest burden relief. Reduced leverage expands financial flexibility, lowers refinancing risk and enhances the firm's ability to access capital or absorb near-term operational volatility without compromising core operations.

Flexible access to equity capital (ATM)

The $200M at-the-market program establishes a lasting, discretionary liquidity option to fund operations, reduce leverage or finance strategic initiatives. Structural access to equity markets improves funding optionality and reduces forced asset sales or high-cost borrowing in stressed periods.

Negative Factors

Falling revenue, thin gross margin

Steep revenue decline combined with a 3.2% gross margin is a persistent structural concern: limited pricing power and tight product economics constrain the company's ability to generate scalable profits. This undermines long-term margin sustainability and makes profitability fragile if sales do not recover.

Poor cash conversion and negative FCF growth

Very weak cash conversion (OCF to net income ~0.036) and negative free cash flow growth indicate earnings are not converting to cash. Structurally weak cash generation increases reliance on external financing, constrains reinvestment, and raises liquidity risk during industry or demand slowdowns.

Potential dilution from equity program

While providing funding optionality, the sizeable ATM program signals material capital needs and creates durable dilution risk if used. Persistent reliance on equity markets can dilute existing holders, affect incentives and may reflect limited internal cash generation to support growth or repair the balance sheet.

Ridgetech Business Overview & Revenue Model

Company Description

Ridgetech Inc operates as a holding company. The Company, through its subsidiaries, wholesales, distributes, and retails pharmaceutical and other healthcare products.

Ridgetech Financial Statement Overview

Summary

Mixed fundamentals: profitability improved (net margin 8.50% and strong ROE 34.40%), but revenue fell 18.46%, gross margin is very low (3.20%), operating margins are weak, and cash conversion is poor (operating cash flow to net income 0.036).

Income Statement

Ridgetech's income statement shows a mixed performance. The company achieved a positive net profit margin of 8.50% in the latest year, a significant improvement from previous losses. However, revenue has declined by 18.46% compared to the previous year, indicating challenges in maintaining sales growth. The gross profit margin remains low at 3.20%, suggesting limited pricing power or high cost of goods sold. EBIT and EBITDA margins are weak, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio has improved to 0.35, showing reduced leverage compared to previous years. Return on equity is strong at 34.40%, driven by recent profitability. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing. The company has made progress in strengthening its equity base, but potential risks remain if profitability does not sustain.

Cash Flow

Cash flow analysis reveals challenges in cash generation. Free cash flow growth is negative, and the operating cash flow to net income ratio is low at 0.036, indicating weak cash conversion from earnings. The free cash flow to net income ratio is healthier at 0.51, but overall cash flow management needs improvement to support operations and growth.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	111.62M	119.97M	154.54M	148.81M	164.39M	133.13M
Gross Profit	-8.29M	3.84M	31.11M	34.28M	36.52M	29.24M
EBITDA	6.66M	4.98M	1.23M	-19.96M	-579.93K	-6.14M
Net Income	12.41M	10.19M	-4.23M	-21.14M	-3.19M	-8.12M
Balance Sheet
Total Assets	61.39M	64.48M	95.06M	90.97M	106.38M	106.31M
Cash, Cash Equivalents and Short-Term Investments	13.94M	12.78M	20.15M	18.81M	18.46M	22.14M
Total Debt	4.66M	10.39M	43.22M	42.16M	48.67M	46.78M
Total Liabilities	31.61M	34.85M	80.76M	74.30M	83.65M	81.91M
Stockholders Equity	29.78M	29.64M	15.64M	18.01M	24.09M	25.74M
Cash Flow
Free Cash Flow	5.35M	632.50K	-4.08M	-3.60M	-5.69M	-666.47K
Operating Cash Flow	5.35M	1.25M	-3.16M	-3.28M	-5.39M	-62.29K
Investing Cash Flow	0.00	-18.14M	-2.04M	-316.10K	-306.14K	-2.00M
Financing Cash Flow	-5.87M	1.51M	8.00M	2.37M	4.84M	3.08M

Ridgetech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDGT, the sentiment is Positive. The current price of 2.66 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.99, and above the 200-day MA of 1.94, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 71.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDGT.

Ridgetech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDGT	54 Neutral	$37.67M	-30.17	39.90%	―	-22.37%	63.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNYR	50 Neutral	$14.96M	49.21	―	―	―	―
GEG	45 Neutral	$63.85M	-1.28	-21.33%	―	24.82%	―

Ridgetech Corporate Events

Ridgetech Posts Flat Half-Year Revenue but Slightly Stronger Balance Sheet

Ridgetech, Inc. has furnished its unaudited interim financial results for the six months ended Sept. 30, 2025, reporting essentially flat revenue of $62.8 million compared with the same period in 2024 and a slight increase in gross profit to $2.46 million. Operating expenses rose, particularly selling expenses, leaving the group with a marginally higher accumulated deficit even as total liabilities declined from March 31, 2025 levels and shareholders’ equity edged up to $29.8 million, suggesting modest balance-sheet strengthening despite continued pressure on profitability.

The most recent analyst rating on (RDGT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Ridgetech stock, see the RDGT Stock Forecast page.

Ridgetech Launches $200 Million At-the-Market Share Offering Program

On December 29, 2025, Ridgetech, Inc. entered into a sales agreement with AC Sunshine Securities LLC to establish an at-the-market equity offering program allowing the company to issue and sell up to $200 million of its ordinary shares from time to time through the agent. The shares will be offered under Ridgetech’s effective shelf registration statement on Form F-3 and related prospectus documents, with AC Sunshine Securities earning a 3.5% commission on gross proceeds and being reimbursed for certain expenses, giving Ridgetech flexible, discretionary access to incremental equity capital while not obligating either party to complete any specific volume of sales, which could influence the company’s future funding mix and potential dilution for existing shareholders.

The most recent analyst rating on (RDGT) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Ridgetech stock, see the RDGT Stock Forecast page.

Ridgetech Approves Key Proposals at Annual Meeting

On December 12, 2025, Ridgetech, Inc. held its annual general meeting where shareholders approved several key proposals. These included the election of four directors, the ratification of YCM CPA, Inc. as the independent auditor, a consolidation of ordinary shares, amendments to the company’s articles of association, and an updated equity incentive plan. These decisions are expected to impact the company’s governance and financial structuring, potentially influencing its market positioning and shareholder value.

The most recent analyst rating on (RDGT) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Ridgetech stock, see the RDGT Stock Forecast page.