Ridgetech (RDGT) AI Stock Analysis

• Market Cap: $11.18M
• Dividend Yield: N/A
• Average Volume (3M): 35.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• 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: 5,855,009
• 10 Day Avg. Volume: 73,880
• 30 Day Avg. Volume: 35,985
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 9.20
• Enterprise Value/Market Cap: -0.18
• Enterprise Value/Revenue: -0.01
• Enterprise Value/Gross Profit: -0.07
• Enterprise Value/Ebitda: 0.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $4.00 ▲(2.30% Upside)

Ridgetech's overall stock score is driven by strong technical indicators, despite financial challenges. The stock's positive momentum is a key strength, but valuation concerns and financial performance issues weigh down the score.

Positive Factors

Improved Leverage

Improved leverage indicates better financial health, reducing risk and potentially lowering interest expenses, which can enhance long-term profitability.

Profitability Achieved

Achieving profitability is a significant milestone, suggesting the company can sustain operations and potentially reinvest in growth initiatives.

Securities Offering Completion

The successful capital raise strengthens Ridgetech's balance sheet, providing resources for strategic investments and operational expansion.

Negative Factors

Revenue Decline

A decline in revenue poses challenges for growth and sustainability, potentially impacting market position and long-term strategic initiatives.

Weak Cash Flow Management

Weak cash flow management limits the company's ability to fund operations and growth, increasing reliance on external financing.

Operational Inefficiencies

Operational inefficiencies can hinder profitability and competitiveness, requiring strategic improvements to enhance productivity and cost management.

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

Ridgetech's financial performance is mixed. Despite achieving profitability with a net profit margin of 8.50%, revenue has declined by 18.46%. 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: 3.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3.91 is above the 20-day moving average (MA) of 3.57, above the 50-day MA of 2.35, and above the 200-day MA of 1.45, indicating a bullish trend. The MACD of 0.57 indicates Positive momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 20.10 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	55 Neutral	$11.18M	-1.94	-6.45%	―	-22.37%	63.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GEG	49 Neutral	$71.62M	7.96	4.68%	―	24.82%	―
SNYR	47 Neutral	$24.29M	5.84	―	―	―	―
ZYXI	40 Underperform	$35.55M	―	―	―	-44.13%	-1719.49%
OMI	39 Underperform	$207.29M	―	-184.47%	―	-37.09%	-2639.44%

Ridgetech Corporate Events

Ridgetech Schedules December 2025 Annual General Meeting with Key Proposals

Ridgetech, Inc. has announced its upcoming Annual General Meeting of shareholders, scheduled for December 12, 2025. Key agenda items include the election of four directors, ratification of YCM CPA, Inc. as the independent accounting firm, and a proposal for the consolidation of ordinary shares to comply with Nasdaq Listing Rules. The meeting will also address the adoption of a new equity incentive plan and restatement of the company’s articles of association, reflecting the share consolidation.

Ridgetech Completes $2.8 Million Securities Offering

On October 30, 2025, Ridgetech, Inc. entered into a Securities Purchase Agreement with non-U.S. accredited investors, selling 4,680,000 ordinary shares and warrants for 11,700,000 shares, raising $2,808,000. The offering, which closed on November 7, 2025, allows Ridgetech to follow Cayman Islands governance practices, bypassing certain NASDAQ requirements, potentially impacting its market operations and investor relations.