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Ridge-i Inc. (5572) AI Stock Analysis

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JP:5572

Ridge-i Inc.

(TSE/TYO:5572)

Select Model
Rating:75Outperform
Price Target:JPY 3,893.00â–²(12.51% Upside)
Action:reiterated
Date:09/19/26

The score is driven primarily by strong financial performance—re-accelerating growth, sharply improved margins, and a very conservative balance sheet—tempered by gross-margin and cash-flow volatility. Technicals add support with an established uptrend and positive momentum indicators, while valuation is a meaningful headwind given the elevated P/E and no dividend yield data to offset it.

Positive Factors
Reaccelerating growth and profitabilityRevenue growth reaccelerated while operating and net margins improved sharply, indicating stronger earnings conversion and business momentum. If maintained, this combination can expand internal funding capacity, support investment in growth, and strengthen the company’s ability to compound profits over the next several quarters.
Negative Factors
Gross-margin compressionThe sustained step-down from earlier gross-margin levels points to pressure from pricing, product mix, or costs, even though operating profitability improved recently. If the lower margin base persists, it could limit incremental earnings growth, reduce operating leverage, and make future profit expansion more dependent on expense control.

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

-30%-20%-10%0%10%20%30%40%50%JP:5572+44.05%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 14.43B
Dividend Yield
―
Average Volume (3M)
61.05K
Price to Earnings (P/E)
35.1
Beta (1Y)
1.05
Revenue Growth
15.44%
EPS Growth
163.64%
Country
Japan
Employees
124
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 latest-year improvement with revenue growth re-accelerating (~14.1%) and sharply higher profitability (net margin ~13.6%, operating margin ~18.3%), supported by an exceptionally low-leverage balance sheet (debt-to-equity ~0.01). Offsets include a step-down in gross margin (~55% vs prior mid-60% range) and a historically volatile cash-flow track record despite strong recent conversion.

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

74Positive
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 Price3460.00

Price Trends

50DMA3110.82Positive
100DMA2873.48Positive
200DMA2575.03Positive

Market Momentum

MACD50.62Negative
RSI59.59Neutral
STOCH77.54Neutral

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 3460.00 is above the 20-day moving average (MA) of 3234.95, above the 50-day MA of 3110.82, and above the 200-day MA of 2575.03, indicating a bullish trend. The MACD of 50.62 indicates Negative momentum. The RSI at 59.59 is Neutral, neither overbought nor oversold. The STOCH value of 77.54 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:557275OutperformJPY 14.79B35.05――15.44%163.64%
JP:5586JP:558667NeutralJPY 11.36B45.93――36.53%93.50%
JP:4382JP:438265NeutralJPY 14.23B29.13――8.50%―
JP:4375JP:437557NeutralJPY 33.90B72.99――22.56%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4425JP:442532UnderperformJPY 12.81B-429.88――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 '26Nov '26
JP:5572 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5572Ridge-i Inc.3460.001020.0041.80%
JP:4375Safie Inc.620.00-311.00-33.40%
JP:4382HEROZ, Inc.820.00-152.00-15.64%
JP:4425Kudan, Inc.1142.0049.004.48%
JP:5586Laboro.AI, Inc.710.00-315.00-30.73%
JP:334AVisual Processing Japan Co.,Ltd1043.00328.1645.91%
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