Ridgetech (RDGT) AI Stock Analysis

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Ridgetech

(NASDAQ:RDGT)

40Underperform

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 (RDGT) vs. S&P 500 (SPY)

Market Cap

$6.64M

Dividend YieldN/A

Average Volume (3M)80.93K

Price to Earnings (P/E)―

Beta (1Y)0.36

Revenue Growth-4.87%

EPS Growth94.14%

CountryUS

Employees939

SectorHealthcare

Sector Strength56

IndustryMedical - Distribution

Share Statistics

EPS (TTM)-2.32

Shares Outstanding6,178,362

10 Day Avg. Volume33,622

30 Day Avg. Volume80,929

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.18

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit0.47

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Ridgetech Business Overview & Revenue Model

Company DescriptionChina 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 MoneyChina 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

Negative

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

Negative

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

Negative

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.

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
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	-10.57M	-2.55M	-8.61M	-6.38M
	EBITDA
1.23M	-19.96M	-579.93K	-6.08M	-3.66M
	Net Income Common Stockholders
-4.23M	-21.14M	-3.20M	-8.38M	-6.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.15M	18.81M	18.55M	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 Price1.07

Price Trends

50DMA

1.09

Negative

100DMA

1.40

Negative

200DMA

1.70

Negative

Market Momentum

MACD

-0.02

Negative

RSI

53.13

Neutral

STOCH

43.14

Neutral

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 1.07 is above the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.09, and below the 200-day MA of 1.70, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 43.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RDGT.

Ridgetech Risk Analysis

Ridgetech disclosed 58 risk factors in its most recent earnings report. Ridgetech reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Ridgetech Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEG	60 Neutral	$54.42M	―	<0.01%	―	73.74%	-98.00%
Sector *	52 Neutral	$5.35B	3.81	-42.57%	2.86%	17.10%	1.33%
SNYR	47 Neutral	$18.64M	1.17	-23.21%	―	―	―
RDGT	40 Underperform	$6.64M	―	-27.69%	―	-4.87%	94.14%
ZYXI	38 Underperform	$69.85M	24.14	-27.52%	―	-8.63%	-202.31%

* Healthcare Sector Average

Performance Comparison

RDGT

Ridgetech

1.07

-1.40

-56.68%

GEG

Great Elm Group

1.92

0.06

3.23%

ZYXI

Zynex

2.31

-8.43

-78.49%

SNYR

Synergy CHC

2.13

2.01

1675.00%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.