Ridgetech (RDGT) AI Stock Analysis

• Market Cap: $6.80M
• Dividend Yield: N/A
• Average Volume (3M): 9.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -4.87%
• EPS Growth: 94.14%
• Country: US
• Employees: 939
• Sector: Healthcare
• Sector Strength: 59
• Industry: Medical - Distribution
• EPS (TTM): -2.32
• Shares Outstanding: 6,178,362
• 10 Day Avg. Volume: 9,875
• 30 Day Avg. Volume: 9,042
• PEG Ratio: 0.03
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.71
• Enterprise Value/Market Cap: 10.16
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 4.44
• Enterprise Value/Ebitda: -4.66
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: ―

China Jo-Jo Drugstores is currently facing significant financial challenges, with negative profitability, high leverage, and declining cash flows being the primary concerns. Technical indicators also suggest a bearish outlook, with the stock trading below key moving averages. The valuation is unattractive due to negative earnings and the absence of a dividend. Overall, the stock is rated low, reflecting the need for strategic improvements to address financial instability and restore investor confidence.

Ridgetech Business Overview & Revenue Model

Company Description

China Jo-Jo Drugstores (CJJD) is a retail and wholesale distributor of pharmaceutical and healthcare products in China. Operating primarily through a network of retail pharmacies, the company offers a wide range of products including prescription and over-the-counter drugs, nutritional supplements, traditional Chinese medicine, and personal care items. CJJD is committed to providing quality healthcare solutions and enhancing customer accessibility to essential medications.

How the Company Makes Money

China Jo-Jo Drugstores generates revenue through multiple channels. The core of its revenue model is derived from the sale of pharmaceutical products and healthcare items through its retail pharmacy outlets. The company also engages in wholesale distribution, supplying drugs to hospitals, clinics, and other pharmacies. Additionally, CJJD leverages e-commerce platforms to reach a broader customer base, providing an online sales channel for its products. Key partnerships with suppliers and manufacturers ensure a steady inventory of high-demand items, further supporting its revenue streams.

Ridgetech Financial Statement Overview

Summary

China Jo-Jo Drugstores is facing significant financial challenges across all key areas. The income statement reflects ongoing operational difficulties with consistent losses and negative margins. The balance sheet shows financial instability with high leverage and declining equity. Cash flow issues further compound these problems, with negative operational cash flows and reliance on financing activities. Overall, the company's current financial state indicates a need for strategic adjustments to improve stability and profitability.

Income Statement

China Jo-Jo Drugstores has shown a declining trend in revenue with a negative revenue growth rate over the past three years. The company has been consistently reporting net losses, leading to negative net profit margins. The gross profit margin has remained relatively stable but is overshadowed by the persistent negative EBIT and EBITDA margins, indicating challenges in operational efficiency and profitability.

Balance Sheet

The balance sheet indicates a high level of debt relative to equity, with an increasing debt-to-equity ratio over time. Stockholders' equity has been decreasing, reflecting the ongoing net losses. The equity ratio has been decreasing, signaling reduced financial stability. Overall, the company's balance sheet shows financial strain, with high leverage and declining equity.

Cash Flow

The cash flow statement reveals negative operating cash flow, which, combined with negative free cash flow, suggests challenges in generating cash from operations. The company has also experienced a negative free cash flow growth rate, indicating deteriorating cash flow health. The financing activities have been the primary source of cash inflows, which may not be sustainable long-term.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
154.54M	148.81M	164.39M	133.13M	117.33M
	Gross Profit
31.11M	34.28M	36.52M	29.24M	25.53M
	EBIT
-3.53M	-20.93M	-2.69M	-8.84M	-7.00M
	EBITDA
1.23M	-19.96M	-579.93K	-6.14M	-3.66M
	Net Income Common Stockholders
-4.23M	-21.14M	-3.19M	-8.12M	-5.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.15M	18.81M	18.46M	22.14M	16.33M
	Total Assets
95.06M	90.97M	106.38M	106.31M	99.52M
	Total Debt
43.22M	42.16M	48.67M	46.78M	54.45M
	Net Debt
23.07M	23.35M	30.22M	24.74M	38.27M
	Total Liabilities
80.76M	74.30M	83.65M	81.91M	80.74M
	Stockholders Equity
15.64M	18.01M	24.09M	25.74M	20.59M
Cash Flow		Free Cash Flow
-4.08M	-3.60M	-5.69M	-666.47K	-9.19M
	Operating Cash Flow
-3.16M	-3.28M	-5.39M	-62.29K	-6.91M
	Investing Cash Flow
-2.04M	-316.10K	-306.14K	-2.00M	-4.84M
	Financing Cash Flow
8.00M	2.37M	4.84M	3.08M	19.01M

Ridgetech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.10
• 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 RDGT, the sentiment is Neutral. The current price of 1.1 is above the 20-day moving average (MA) of 1.04, above the 50-day MA of 1.03, and below the 200-day MA of 1.53, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 84.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RDGT.

Ridgetech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
GEG	51 Neutral	$61.19M	―	-2.28%	―	64.34%	70.95%
SNYR	47 Neutral	$18.75M	1.86	-23.21%	―	―	―
ZYXI	43 Neutral	$63.50M	24.14	-27.52%	―	-8.63%	-202.31%
RDGT	40 Underperform	$6.80M	―	-27.69%	―	-4.87%	94.14%