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Ridge-i Inc. (5572) AI Stock Analysis

JP:5572

Ridge-i Inc.

(TSE/TYO:5572)

Select Model
Rating:72Outperform
Price Target:JPY 3,463.00â–²(10.64% Upside)
Action:reiterated
Date:09/19/26

The company's financial performance is the standout strength, driven by a debt-free balance sheet, surging cash flow, and expanding margins. This is partially offset by a moderately high valuation and a neutral technical picture that, while positive, lacks strong momentum signals. The overall score reflects a fundamentally sound company with growth potential, tempered by a price that already reflects much of the good news.

Positive Factors
Re-accelerating growth and profitabilityRevenue growth re-accelerated while operating and net margins expanded sharply, indicating stronger earnings conversion in the latest period. If sustained, this combination can improve internal funding capacity and support continued investment in the business over the next several quarters.
Negative Factors
Gross-margin compressionThe substantial decline in gross margin indicates that pricing, product mix, or cost conditions have become less favorable than in earlier periods. If the lower margin persists, it could constrain incremental operating leverage and make future profit growth more dependent on revenue expansion.

Ridge-i Inc. (5572) vs. iShares MSCI Japan ETF (EWJ)

-30%-20%-10%0%10%20%30%40%JP:5572+27.35%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 14.04B
Dividend Yield
―
Average Volume (3M)
56.47K
Price to Earnings (P/E)
34.1
Beta (1Y)
1.09
Revenue Growth
15.44%
EPS Growth
163.64%
Country
Japan
Employees
80
Sector
General
Sector Strength
55
Industry
Information Technology Services

Ridge-i Inc. Business Overview & Revenue Model

Company Description

Ridge-i Inc. engages in the consulting and development of artificial intelligence (AI) and deep learning technologies. The company offers AI utilization consulting and AI development, satellite data AI analysis, data & analytics, generative AI consul...

Ridge-i Inc. Financial Statement Overview

Summary

Strong financial health with a debt-free balance sheet, robust cash flow generation, and impressive income statement recovery. Revenue grew 14.1% and net margin expanded to 13.6% in FY2026. The primary risk is historical volatility in profitability and cash flow, though the current trajectory is firmly positive.

Income Statement

78Positive

Balance Sheet

85Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMJul 2026Jul 2025Jul 2024Jul 2023Jul 2022
Income Statement
Total Revenue2.99B2.99B2.59B1.07B790.38M968.52M
Gross Profit1.65B1.65B1.33B735.61M513.70M602.24M
EBITDA609.74M609.74M367.85M171.49M83.97M88.45M
Net Income407.55M407.55M139.63M121.70M44.56M150.06M
Balance Sheet
Total Assets4.48B4.48B2.86B2.36B2.06B1.56B
Cash, Cash Equivalents and Short-Term Investments3.56B3.56B1.83B1.37B1.72B1.38B
Total Debt90.00M90.00M0000
Total Liabilities769.97M769.97M398.47M225.66M73.18M147.63M
Stockholders Equity3.72B3.72B2.20B2.14B1.99B1.41B
Cash Flow
Free Cash Flow0551.55M7.63M342.58M-148.68M173.61M
Operating Cash Flow0562.01M51.32M348.62M-145.76M178.19M
Investing Cash Flow0-1.07B-53.14M-723.02M-38.26M-4.58M
Financing Cash Flow0998.26M-286.32M24.42M521.65M-2.84M

Ridge-i Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price3130.00

Price Trends

50DMA3047.96Positive
100DMA2871.59Positive
200DMA2539.03Positive

Market Momentum

MACD72.30Positive
RSI52.84Neutral
STOCH58.17Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5572, the sentiment is Positive. The current price of 3130.00 is below the 20-day moving average (MA) of 3234.75, above the 50-day MA of 3047.96, and above the 200-day MA of 2539.03, indicating a bullish trend. The MACD of 72.30 indicates Positive momentum. The RSI at 52.84 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5572.

Ridge-i Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:5572 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:5572JP:557272OutperformJPY 14.12B34.11――15.44%163.64%
JP:4382JP:438268NeutralJPY 17.36B35.31――8.50%―
JP:5586JP:558667NeutralJPY 12.94B51.10――34.57%80.99%
JP:4375JP:437560NeutralJPY 35.97B76.93――22.56%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4425JP:442543NeutralJPY 13.40B-453.26――75.12%97.01%

* General Sector Average

Performance Comparison

0%50%100%150%JP:5572JP:4375JP:4382JP:4425JP:5586JP:334ADec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5572 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5572Ridge-i Inc.3250.00698.0027.35%
JP:4375Safie Inc.644.00-277.00-30.08%
JP:4382HEROZ, Inc.972.004.000.41%
JP:4425Kudan, Inc.1183.00108.0010.05%
JP:5586Laboro.AI, Inc.810.00-102.00-11.18%
JP:334AVisual Processing Japan Co.,Ltd1055.00336.7246.88%
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 19, 2026