Ridgetech (RDGT) AI Stock Analysis

• Market Cap: $28.89M
• Dividend Yield: N/A
• Average Volume (3M): 35.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• 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: 0.24
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.79
• Enterprise Value/Ebitda: 1.38
• 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: 44 Neutral
• Price Target: $1.50 ▼(-43.61% Downside)
• Action: Reiterated Date: 01/31/26
• Date: Action: Reiterated 01/31/26

The score is held down primarily by weak fundamentals (revenue decline, thin gross margin, and poor cash conversion) and a bearish technical picture (below key moving averages with negative MACD). Recent profitability and improved leverage provide some support, but valuation metrics are not helpful due to a negative P/E and no dividend yield data.

Positive Factors

Improved leverage & strong ROE

Lower leverage and a 34.4% ROE indicate the company has reduced financial risk while generating high returns on shareholder capital. This structural improvement enhances financial flexibility for strategic investments and provides a durable cushion against cyclical downturns.

Return to profitability

Achieving an 8.5% net margin after prior losses signals an operating turnaround and a sustainable earnings base. Persistent profitability supports reinvestment in R&D and product development, enabling longer-term competitiveness in renewable energy markets.

Strategic acquisition completed

The Ridgeline acquisition and restructuring broaden operational capability and market positioning. Structural consolidation and asset reallocation can create synergies, expand product offerings, and improve scale economics over the medium term.

Negative Factors

Material revenue decline

A near-20% revenue reduction undermines scale benefits and market momentum. Persistently falling top line pressures long-term investment capacity, weakens recurring subscription growth potential, and raises execution risk for sustaining product development and customer retention.

Very low gross margin

A 3.2% gross margin leaves minimal room to cover SG&A, R&D, and capital needs. Structurally thin margins suggest limited pricing power or high COGS, making profitability highly sensitive to cost inflation and constraining the firm's ability to invest for durable competitive advantage.

Weak cash conversion

Poor cash conversion and negative FCF growth indicate earnings are not translating into usable cash. This structural liquidity weakness can force reliance on external financing, limit capex and working capital, and increase vulnerability during downturns.

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.

How the Company Makes Money

Ridgetech generates revenue through multiple streams, primarily by selling its core products such as smart energy management systems and solar power integration tools to both commercial and residential customers. The company also offers subscription-based services for its energy management software, providing ongoing support and updates to users. Additionally, Ridgetech partners with utility companies and government agencies to develop joint programs that promote renewable energy adoption, which creates opportunities for grants and funding. Strategic partnerships with other technology firms further enhance Ridgetech's market reach and create additional revenue opportunities through collaborative projects and product integrations.

Ridgetech Financial Statement Overview

Summary

Financials are mixed: profitability improved (8.50% net margin, 34.40% ROE) and leverage is lower (debt-to-equity 0.35), 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) with negative free cash flow growth.

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	119.97M	119.97M	154.54M	148.81M	164.39M	133.13M
Gross Profit	3.84M	3.84M	31.11M	34.28M	36.52M	29.24M
EBITDA	4.98M	4.98M	1.23M	-19.96M	-579.93K	-6.14M
Net Income	10.19M	10.19M	-4.23M	-21.14M	-3.19M	-8.12M
Balance Sheet
Total Assets	64.48M	64.48M	95.06M	90.97M	106.38M	106.31M
Cash, Cash Equivalents and Short-Term Investments	12.78M	12.78M	20.15M	18.81M	18.46M	22.14M
Total Debt	10.39M	10.39M	43.22M	42.16M	48.67M	46.78M
Total Liabilities	34.85M	34.85M	80.76M	74.30M	83.65M	81.91M
Stockholders Equity	29.64M	29.64M	15.64M	18.01M	24.09M	25.74M
Cash Flow
Free Cash Flow	-10.38M	632.50K	-4.08M	-3.60M	-5.69M	-666.47K
Operating Cash Flow	-9.95M	1.25M	-3.16M	-3.28M	-5.39M	-62.29K
Investing Cash Flow	-430.00K	-18.14M	-2.04M	-316.10K	-306.14K	-2.00M
Financing Cash Flow	7.83M	1.51M	8.00M	2.37M	4.84M	3.08M

Ridgetech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.66 is above the 20-day moving average (MA) of 1.60, above the 50-day MA of 2.35, and above the 200-day MA of 1.89, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 41.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RDGT.

Ridgetech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNYR	50 Neutral	$15.75M	4.80	―	―	―	―
GEG	47 Neutral	$67.13M	-3.74	4.68%	―	24.82%	―
RDGT	44 Neutral	$28.89M	-1.60	-6.45%	―	-22.37%	63.14%

Ridgetech Corporate Events

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.

Ridgetech Announces CFO Agreement with Ming Zhao

Ridgetech, Inc., a company based in Hangzhou, China, announced the signing of a CFO employment agreement with Ming Zhao, effective from August 1, 2024. This agreement outlines Zhao’s responsibilities, including overseeing compliance with U.S. financial regulations and managing the company’s accounting and tax matters. The announcement, dated December 12, 2025, highlights Zhao’s dual role as Interim CEO and CFO, which may influence Ridgetech’s strategic direction and operational efficiency.

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 Completes Strategic Restructuring with Ridgeline Acquisition

On February 28, 2025, Ridgetech, Inc. completed significant restructuring transactions involving the acquisition of Ridgeline International Limited and the divestiture of equity in Zhejiang Jiuxin Investment Management Co. Ltd. These strategic moves are expected to strengthen Ridgetech’s operational capabilities and market positioning, potentially offering improved value to stakeholders.

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.