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Ridgetech (RDGT)
NASDAQ:RDGT
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Ridgetech (RDGT) AI Stock Analysis

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RDGT

Ridgetech

(NASDAQ:RDGT)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
$1.50
▲(20.00% Upside)
Ridgetech's overall stock score is primarily influenced by its mixed financial performance and concerning valuation metrics. While the company has achieved profitability, revenue decline and weak cash flow management pose significant challenges. Technical analysis provides a neutral outlook, with no strong bullish or bearish signals. The negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness.

Ridgetech (RDGT) vs. SPDR S&P 500 ETF (SPY)

Ridgetech Business Overview & Revenue Model

Company DescriptionRidgetech (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 MoneyRidgetech 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
45
Neutral
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
55
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2023Dec 2023Dec 2023
Income Statement
Total Revenue147.13M119.97M154.54M154.54M154.54M154.54M
Gross Profit29.77M3.84M31.11M31.11M31.11M31.11M
EBITDA-5.06M4.98M1.23M1.23M1.23M1.23M
Net Income-5.59M10.19M-4.23M-4.23M-4.23M-4.23M
Balance Sheet
Total Assets94.19M64.48M95.06M95.06M95.06M95.06M
Cash, Cash Equivalents and Short-Term Investments18.00M12.78M20.15M20.15M20.15M20.15M
Total Debt42.17M10.39M43.22M43.22M43.22M43.22M
Total Liabilities74.07M34.85M80.76M80.76M80.76M80.76M
Stockholders Equity21.47M29.64M15.64M15.64M15.64M15.64M
Cash Flow
Free Cash Flow-14.94M632.50K-4.08M-4.08M-4.08M-4.08M
Operating Cash Flow-13.83M1.25M-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 Flow15.50M1.51M8.00M8.00M8.00M8.00M

Ridgetech Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.25
Price Trends
50DMA
1.27
Negative
100DMA
1.18
Positive
200DMA
1.28
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.10
Neutral
STOCH
8.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDGT, the sentiment is Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.27, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 8.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 1 New Risks
1.
HJ Group is subject to restrictions on making payments to us. Q1, 2023

Ridgetech Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$77.13M8.5718.33%-8.51%
49
Neutral
$7.31M-6.45%-22.37%63.14%
47
Neutral
$27.98M6.73
44
Neutral
$43.93M-1.55-2272.96%-25.21%-631.48%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RDGT
Ridgetech
1.25
-1.55
-55.36%
GEG
Great Elm Group
2.48
0.58
30.53%
ZYXI
Zynex
1.47
-6.36
-81.23%
SNYR
Synergy CHC
2.41
-1.64
-40.49%

Ridgetech Corporate Events

Ridgetech Reports Stable Revenue Amid Strategic Transformation
Jul 28, 2025

On July 28, 2025, Ridgetech, Inc. announced its financial results for the fiscal year ending March 31, 2025. The company reported stable revenue of approximately $120 million despite significant transformations, including the divestiture of its retail pharmacy business and the acquisition of Ridgeline and its subsidiary, Allright. This strategic shift reflects Ridgetech’s focus on the wholesale pharmaceutical sector, aiming to leverage Allright’s growing online and offline distribution network. The company experienced a decrease in offline wholesale revenue but saw new contributions from its online platforms. Ridgetech’s net income improved significantly, reaching $10.20 million, compared to a net loss in the previous year. The company increased its investment in sales and marketing to support its strategic transformation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 26, 2025