Ridgetech (RDGT) AI Stock Analysis

• Market Cap: $65.46M
• Dividend Yield: N/A
• Average Volume (3M): 35.98K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• 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: 0.18
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: -1.41
• Enterprise Value/Ebitda: 1.76
• 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: 51 Neutral
• Price Target: $3.50 ▲(31.58% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held back primarily by mixed fundamentals—profitability improved but revenue fell sharply and cash generation is weak—while technicals are supportive but overbought. Valuation adds uncertainty due to a negative P/E and no dividend yield data.

Positive Factors

Return to profitability

Achieving an 8.50% net margin and reduced leverage (debt-to-equity ~0.35) materially improves financial resilience. Sustained profitability and lower leverage enhance capacity to fund operations internally, support investment or debt servicing, and reduce refinancing risk over the next several quarters.

Modest balance-sheet strengthening

Recent interim results show shareholders' equity increase and declining liabilities, which indicate gradual balance-sheet repair. A stronger equity base and lower liabilities improve solvency and provide a more stable platform to absorb shocks or pursue strategic moves in the 2–6 month horizon.

Flexible capital access via ATM program

An active $200M ATM program gives the company discretionary, on-demand equity access, materially reducing liquidity risk and enabling opportunistic funding for operations, deleveraging, or M&A. This structural financing flexibility supports the balance sheet over multiple quarters.

Negative Factors

Sustained revenue decline

A sharp, persistent drop in sales undermines scale economics and revenue predictability. With falling top-line, fixed costs pressure margins and limit operating leverage, making it harder to convert incremental investment into growth and increasing reliance on capital markets for support.

Very low gross margins

Extremely low gross margins signal limited pricing power or high COGS and constrain the firm's ability to absorb SG&A without eroding profits. This structural margin weakness makes profitability fragile and reduces the buffer against demand shocks or cost inflation over the medium term.

Weak cash generation

Poor cash conversion means reported earnings are not translating into spendable cash, restricting reinvestment and forcing dependence on external financing. Over several months this elevates liquidity and execution risk, especially if revenue or margins weaken further.

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.

Ridgetech Financial Statement Overview

Summary

Return to profitability (8.50% net margin) and improved leverage (0.35 debt-to-equity) are positives, but the 18.46% revenue decline, very low gross margin (3.20%), weak EBIT/EBITDA margins, and poor cash conversion (operating cash flow to net income of 0.036) materially weaken overall fundamentals.

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	111.62M	119.97M	154.54M	148.81M	164.39M	133.13M
Gross Profit	-8.29M	3.84M	31.11M	34.28M	36.52M	29.24M
EBITDA	6.66M	4.98M	1.23M	-19.96M	-579.93K	-6.14M
Net Income	12.41M	10.19M	-4.23M	-21.14M	-3.19M	-8.12M
Balance Sheet
Total Assets	61.39M	64.48M	95.06M	90.97M	106.38M	106.31M
Cash, Cash Equivalents and Short-Term Investments	13.94M	12.78M	20.15M	18.81M	18.46M	22.14M
Total Debt	4.66M	10.39M	43.22M	42.16M	48.67M	46.78M
Total Liabilities	31.61M	34.85M	80.76M	74.30M	83.65M	81.91M
Stockholders Equity	29.78M	29.64M	15.64M	18.01M	24.09M	25.74M
Cash Flow
Free Cash Flow	5.35M	632.50K	-4.08M	-3.60M	-5.69M	-666.47K
Operating Cash Flow	5.35M	1.25M	-3.16M	-3.28M	-5.39M	-62.29K
Investing Cash Flow	0.00	-18.14M	-2.04M	-316.10K	-306.14K	-2.00M
Financing Cash Flow	-5.87M	1.51M	8.00M	2.37M	4.84M	3.08M

Ridgetech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2.66 is above the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.99, and above the 200-day MA of 1.97, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 79.69 is Negative, neither overbought nor oversold. The STOCH value of 78.18 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
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RDGT	51 Neutral	$65.46M	-30.17	41.78%	―	-22.37%	63.14%
SNYR	50 Neutral	$13.16M	49.21	―	―	―	―
GEG	45 Neutral	$61.56M	-1.28	-21.33%	―	24.82%	―

Ridgetech Corporate Events

Ridgetech Posts Flat Half-Year Revenue but Slightly Stronger Balance Sheet

Ridgetech, Inc. has furnished its unaudited interim financial results for the six months ended Sept. 30, 2025, reporting essentially flat revenue of $62.8 million compared with the same period in 2024 and a slight increase in gross profit to $2.46 million. Operating expenses rose, particularly selling expenses, leaving the group with a marginally higher accumulated deficit even as total liabilities declined from March 31, 2025 levels and shareholders’ equity edged up to $29.8 million, suggesting modest balance-sheet strengthening despite continued pressure on profitability.

The most recent analyst rating on (RDGT) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Ridgetech stock, see the RDGT Stock Forecast page.

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.