Ridgetech (RDGT) AI Stock Analysis

• Market Cap: $8.26M
• Dividend Yield: N/A
• Average Volume (3M): 35.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -22.37%
• EPS Growth: 63.14%
• Country: US
• Employees: 939
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 5,855,009
• 10 Day Avg. Volume: 12,822
• 30 Day Avg. Volume: 35,224
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.24
• Enterprise Value/Revenue: -0.01
• Enterprise Value/Gross Profit: -0.07
• Enterprise Value/Ebitda: 0.40
• 1Y Price Target: $1.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: $1.50 ▲(8.70% Upside)

Ridgetech's overall stock score reflects a mixed financial performance with profitability but declining revenue and operational inefficiencies. Technical analysis provides a moderately positive outlook with upward momentum. However, the negative P/E ratio and lack of dividend yield present valuation challenges. The absence of earnings call data and corporate events limits additional insights.

Ridgetech Business Overview & Revenue Model

Company Description

Ridgetech (RDGT) is a technology company specializing in advanced geospatial solutions and data analytics focused on the agricultural and environmental sectors. The company leverages cutting-edge satellite imagery, drone technology, and machine learning algorithms to provide farmers and land managers with actionable insights designed to optimize crop yields, enhance resource management, and promote sustainable practices. Ridgetech's core offerings include precision agriculture tools, environmental monitoring systems, and customized data services aimed at improving operational efficiency and decision-making for its clients.

How the Company Makes Money

Ridgetech generates revenue through several key streams. Primarily, the company earns income by selling subscriptions to its software-as-a-service (SaaS) platform, which provides access to its geospatial analytics tools and data insights. Additionally, Ridgetech offers consulting services that assist clients in implementing precision agriculture practices and optimizing their operations based on the data provided. The company also partners with agricultural cooperatives and government agencies, enabling them to access Ridgetech's technology and services, which can lead to significant contracts and grants. Furthermore, Ridgetech may monetize data collected through its platforms by partnering with research institutions and commercial entities interested in agricultural and environmental data analysis.

Ridgetech Financial Statement Overview

Summary

Ridgetech's financial performance is mixed. The company has achieved profitability with a net profit margin of 8.50%, but faces challenges with an 18.46% revenue decline and low gross profit margin of 3.20%. Operational inefficiencies are evident in weak EBIT and EBITDA margins. The balance sheet shows improved leverage with a debt-to-equity ratio of 0.35, but cash flow management is weak, with negative free cash flow growth and low cash conversion ratios.

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	Dec 2024	Dec 2023	Dec 2023	Dec 2023	Dec 2023
Income Statement
Total Revenue	147.13M	119.97M	154.54M	154.54M	154.54M	154.54M
Gross Profit	29.77M	3.84M	31.11M	31.11M	31.11M	31.11M
EBITDA	-5.06M	4.98M	1.23M	1.23M	1.23M	1.23M
Net Income	-5.59M	10.19M	-4.23M	-4.23M	-4.23M	-4.23M
Balance Sheet
Total Assets	94.19M	64.48M	95.06M	95.06M	95.06M	95.06M
Cash, Cash Equivalents and Short-Term Investments	18.00M	12.78M	20.15M	20.15M	20.15M	20.15M
Total Debt	42.17M	10.39M	43.22M	43.22M	43.22M	43.22M
Total Liabilities	74.07M	34.85M	80.76M	80.76M	80.76M	80.76M
Stockholders Equity	21.47M	29.64M	15.64M	15.64M	15.64M	15.64M
Cash Flow
Free Cash Flow	-14.94M	632.50K	-4.08M	-4.08M	-4.08M	-4.08M
Operating Cash Flow	-13.83M	1.25M	-3.16M	-3.16M	-3.16M	-3.16M
Investing Cash Flow	-1.14M	-18.14M	-2.04M	-2.04M	-2.04M	-2.04M
Financing Cash Flow	15.50M	1.51M	8.00M	8.00M	8.00M	8.00M

Ridgetech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.38
• 50DMA: Positive
• 100DMA: Positive
• 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 1.38 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.22, and above the 200-day MA of 1.33, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 63.65 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
GEG	63 Neutral	$86.99M	8.86	19.38%	―	-8.51%	―
Sector *	51 Neutral	$7.92B	-0.43	-41.67%	2.21%	22.29%	-1.85%
RDGT	50 Neutral	$8.26M	―	-6.45%	―	-22.37%	63.14%
SNYR	47 Neutral	$26.19M	6.30	-23.21%	―	―	―
ZYXI	44 Neutral	$45.14M	24.14	-168.22%	―	-25.21%	-631.48%