MeritValue

Ridgetech Inc.

RDGTdata completeness 88%6 fiscal years on file
The thesis, from the filings

Ridgetech Inc. earns about -33% on invested capital, but has diluted owners by 63% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$133.1M1$164.4M2$148.8M2$154.5M2$120M3
Net income−$8.12M4−$3.19M5−$21.1M6−$4.23M6$10.2M6
Operating cash flow−$62,2927−$5.39M8−$3.28M9−$3.16M9$1.25M9
Capital expenditure$126,76610$89,96011$118,27212$330,67712$155,36012
Free cash flow (derived)−$189,0587−$5.48M8−$3.4M9−$3.49M9$1.09M9
Total debt$2.65M13——$276,99714—
Cash & equivalents$22M15$18.5M16$18.8M17$2.3M18$12.8M18
Diluted shares3.4M173,966509,8281.4M5.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$53.47
your share of equity
Profit it earned you last year
$18.39
Free cash flow it threw off
$1.97
Debt you’d be carrying
—

10 shares is a claim on $53.47 of net worth that earned you $18.39 and generated $1.97 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-33% avg · 5y
FY21 -98%FY22 -26%FY23 —FY24 -2%FY25 -4%

It earned an average -33% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+63% shares · 5y

Share count is up 63% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 90% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$14.88
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-03-31 · accession 0001213900-23-049280 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 20-F · period ending 2022-03-31 · accession 0001013762-24-002657 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2025-03-31 · accession 0001213900-25-067924 (Revenues)
  4. 20-F · period ending 2021-03-31 · accession 0001213900-23-049280 (NetIncomeLoss)
  5. 20-F · period ending 2022-03-31 · accession 0001013762-24-002657 (NetIncomeLoss)
  6. 20-F · period ending 2023-03-31 · accession 0001213900-25-067924 (NetIncomeLoss)
  7. 20-F · period ending 2021-03-31 · accession 0001213900-23-049280 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-03-31 · accession 0001013762-24-002657 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-03-31 · accession 0001213900-25-067924 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-03-31 · accession 0001213900-23-049280 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-03-31 · accession 0001013762-24-002657 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-03-31 · accession 0001213900-25-067924 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-03-31 · accession 0001213900-22-042481 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2024-03-31 · accession 0001013762-24-002657 (ShortTermBorrowings)
  15. 20-F · period ending 2021-03-31 · accession 0001213900-22-042481 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2022-03-31 · accession 0001213900-23-049280 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2023-03-31 · accession 0001013762-24-002657 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2024-03-31 · accession 0001213900-25-067924 (CashAndCashEquivalentsAtCarryingValue)