Ridgetech (RDGT) AI Stock Analysis

• Market Cap: $55.41M
• Dividend Yield: N/A
• Average Volume (3M): 35.98K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• 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: 0.15
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: -1.02
• Enterprise Value/Ebitda: 1.27
• 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: 52 Neutral
• Price Target: $3.00 ▲(12.78% Upside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is driven primarily by mixed financial performance—profitability and lower leverage are positives, but the sharp revenue decline, thin gross margin, weak operating efficiency, and poor cash conversion weigh heavily. Technicals are supportive with a strong uptrend, though momentum appears overbought. Valuation is a modest negative due to an uninformative negative P/E and no dividend yield data.

Positive Factors

Improved Profitability

Moving to a positive net margin (8.5%) after prior losses is a durable fundamental improvement. Sustainable profitability enhances internal funding capacity, reduces reliance on external capital, and proves the business can cover costs — supporting long‑term viability if revenue stabilizes.

Lower Leverage and High ROE

Reduced leverage (D/E 0.35) and a high ROE (34.4%) indicate stronger capital structure and efficient use of equity. Lower debt burden increases financial flexibility for strategy and shocks, while high ROE shows the business can generate attractive returns on shareholder capital over time.

Flexible Equity Access (ATM Program)

Establishing a $200M ATM program is a structural funding enhancement: it provides discretionary, ongoing equity access to support liquidity, execute strategic investments or shore up the balance sheet without taking on more debt, improving long‑term funding optionality.

Negative Factors

Revenue Decline

A near‑term large revenue drop (c.18%) signals weakening top‑line traction or market share loss. Persistent revenue contraction erodes scale economies, pressures per‑unit margins, and makes sustaining recent profitability difficult unless management reverses the trend through sales or product gains.

Very Thin Gross Margin

A gross margin around 3.2% is structurally thin for a distributor, leaving little room to absorb SG&A or invest for growth. Low COGS leverage makes operating profitability fragile and increases sensitivity to supplier cost shifts or pricing pressure over the medium term.

Poor Cash Conversion & Negative FCF Growth

Very weak cash conversion (OCF/net income ~0.036) and negative free cash flow growth undermine the company’s ability to fund operations and capex from earnings. This structural cash weakness raises reliance on external financing and increases execution risk for strategic plans.

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

Mixed fundamentals: profitability improved to an 8.50% net margin and leverage decreased (debt-to-equity 0.35), but revenue fell 18.46%, gross margin is very low (3.20%), operating margins are weak, and cash conversion is poor (operating cash flow to net income 0.036) with negative free cash flow growth.

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: Negative

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 1.86, above the 50-day MA of 1.98, and above the 200-day MA of 1.96, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 74.45 is Negative, neither overbought nor oversold. The STOCH value of 80.10 is Negative, 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	52 Neutral	$55.41M	-30.17	41.78%	―	-22.37%	63.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SNYR	50 Neutral	$13.73M	49.21	―	―	―	―
GEG	45 Neutral	$59.27M	-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.