investorscraft@gmail.com

Stock Analysis & ValuationRidge-i Inc. (5572.T)

Professional Stock Screener
Previous Close
¥2,100.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1798.17-14
Intrinsic value (DCF)4812508.52229067
Graham-Dodd Method650.49-69
Graham Formula5013.09139

Strategic Investment Analysis

Company Overview

Ridge-i Inc. is a Tokyo-based AI and deep learning technology company specializing in consulting, product development, and AI-driven solutions across multiple industries. Founded in 2016, Ridge-i provides problem-solving consulting, new business creation services, and licensed AI products, with applications in manufacturing, space/satellite monitoring, infrastructure, environmental monitoring, security, logistics, and more. The company leverages AI and satellite data to deliver innovative solutions for industrial and societal challenges. Operating in Japan's competitive AI and software sector, Ridge-i stands out with its niche focus on AI-powered infrastructure and environmental monitoring. With a market cap of approximately ¥11.1 billion, Ridge-i is positioned as an emerging player in Japan's growing AI market, catering to both enterprise and public sector clients.

Investment Summary

Ridge-i Inc. presents an intriguing investment opportunity in Japan's expanding AI and deep learning sector, supported by its diversified applications in infrastructure, environmental monitoring, and industrial AI solutions. The company's revenue of ¥1.07 billion and net income of ¥121.7 million indicate profitability, while its strong cash position (¥1.37 billion) and minimal debt provide financial stability. However, its beta of 1.19 suggests higher volatility compared to the broader market. The lack of dividends may deter income-focused investors, but growth-oriented investors may find Ridge-i appealing due to its niche AI applications and potential expansion in Japan's digital transformation landscape. Risks include competition from larger AI firms and dependence on Japan's AI adoption pace.

Competitive Analysis

Ridge-i Inc. operates in Japan's AI and deep learning consulting and software market, competing with both domestic and international players. Its competitive advantage lies in its specialized AI applications for infrastructure, environmental monitoring, and satellite data analysis—a niche that differentiates it from broader AI service providers. The company's consulting-driven approach allows for tailored AI solutions, appealing to Japanese enterprises seeking localized AI expertise. However, Ridge-i faces competition from larger AI and software firms with greater R&D budgets and global reach. Its relatively small market cap (¥11.1 billion) limits scalability compared to industry giants, but its focus on Japan's industrial and public sector needs provides a defensible market position. The company's ability to monetize AI products (beyond consulting) will be critical for long-term competitiveness. Given Japan's push for AI adoption in infrastructure and manufacturing, Ridge-i is well-positioned to capitalize on these trends, though execution risks remain.

Major Competitors

  • Rakuten Group, Inc. (4755.T): Rakuten offers AI and cloud services through Rakuten AI, competing in Japan's enterprise AI space. While larger in scale, Rakuten's AI focus is more e-commerce and fintech-oriented, differing from Ridge-i's infrastructure and environmental AI specialization. Rakuten's strength lies in its vast ecosystem, but its AI solutions are less niche compared to Ridge-i.
  • GMO Internet, Inc. (3903.T): GMO Internet provides AI and cloud services, including AI-driven cybersecurity and data analytics. It competes with Ridge-i in AI consulting but lacks Ridge-i's focus on satellite and infrastructure AI. GMO's broader IT services portfolio gives it cross-selling opportunities, but Ridge-i's specialized solutions may appeal to targeted clients.
  • mixi, Inc. (2121.T): mixi develops AI for entertainment and social apps, differing from Ridge-i's industrial focus. While not a direct competitor, mixi's AI expertise in consumer applications highlights the fragmented nature of Japan's AI market, where Ridge-i carves out a niche in B2B and infrastructure AI.
  • Nexon Co., Ltd. (3659.T): Nexon uses AI for gaming and virtual environments, representing another segment of Japan's AI landscape. Unlike Ridge-i, Nexon's AI applications are entertainment-focused, illustrating the diversity of Japan's AI market where Ridge-i targets industrial and environmental use cases.
HomeMenuAccount