Ridge-i (TSE:5572) Net Margin %: 9.13% (As of Jan. 2026) — 62% Above Median


TSE:5572 Ridge-i Inc TSE:5572
56 GF Score
Price 円2,483.00
GF Value 円5,194.44
Valuation Possible Value Trap
! 1 Warning Sign
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What is Ridge-i Net Margin %?

Ridge-i TSE:5572 -6.65% 56 Net Margin % is 9.13% as of Jan. 2026, which is 62% above its 10-year median of 5.64. GuruFocus rates TSE:5572 with a GF Score™ of 56/100 and a GF Value™ of 円5,194.44 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 2,827 Software companies, Ridge-i ranks better than 63.21% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Ridge-i's Net Income for the six months ended in Jan. 2026 was 円105 Mil. Ridge-i's Revenue for the six months ended in Jan. 2026 was 円1,151 Mil. Therefore, Ridge-i's net margin for the quarter that ended in Jan. 2026 was 9.13%.

The historical rank and industry rank for Ridge-i's Net Margin % or its related term are showing as below:

TSE:5572' s Net Margin % Range Over the Past 10 Years
Min: -35.47   Med: 5.64   Max: 15.49
Current: 6.21


TSE:5572's Net Margin % is ranked better than
63.21% of 2827 companies
in the Software industry
Industry Median: 2.54 vs TSE:5572: 6.21

Ridge-i  (TSE:5572) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Ridge-i Net Margin % Related Terms


Ridge-i Net Margin % Historical Data

* Premium members only.

The historical data trend for Ridge-i's Net Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ridge-i Net Margin % Chart

Ridge-i Annual Data
Trend Jul21 Jul22 Jul23 Jul24 Jul25
Net Margin %
-35.47 15.49 5.64 11.35 5.38

Ridge-i Semi-Annual Data
Jul21 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 Jul25 Jan26
Net Margin % Get a 7-Day Free Trial Premium Member Only 6.69 15.30 7.08 3.37 9.13

TSE:5572 vs MSFT, ORCL, PLTR: Net Margin % Comparison

For the Software - Infrastructure subindustry, Ridge-i's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ridge-i Net Margin % vs Software Industry

For the Software industry and Technology sector, Ridge-i's Net Margin % distribution charts can be found below:

* The bar in red indicates where Ridge-i's Net Margin % falls into.


TSE:5572
56GF Score
Ridge-i Inc TSE:5572
Net Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Ridge-i Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Ridge-i's Net Margin for the fiscal year that ended in Jul. 2025 is calculated as

Net Margin=Net Income (A: Jul. 2025 )/Revenue (A: Jul. 2025 )
=139.627/2593.322
=5.38 %

Ridge-i's Net Margin for the quarter that ended in Jan. 2026 is calculated as

Net Margin=Net Income (Q: Jan. 2026 )/Revenue (Q: Jan. 2026 )
=105.06/1150.566
=9.13 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of 9.13% mean?
Ridge-i (TSE:5572) has a Net Margin % of 9.13% as of Jan. 2026. Net margin is the ratio of total net income to net sales. View historical data on Ridge-i and its competitors. This is 62% above median its historical median of 5.64. According to the industry distribution chart, Ridge-i ranks #1040 out of 2827 companies in the Software industry, placing it in the top 36.8%.
Is Ridge-i's Net Margin % too high?
Ridge-i's current Net Margin % of 9.13% is 62% above median its 10-year median of 5.64. The Software industry median Net Margin % is 2.54. Ridge-i's value of 9.13% is 259.4% above this industry median. Based on the distribution chart, Ridge-i ranks #1040 out of 2827 companies in the Software industry, which is above the industry midpoint. Overall, Ridge-i has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ridge-i's Net Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Ridge-i ranks #1040 out of 2827 companies for Net Margin %. This puts Ridge-i in the upper half of its industry. The industry median Net Margin % is 2.54. Ridge-i's value of 9.13% is 259.4% above this benchmark. While the company's 10-year median is 5.64 vs. the industry median of 2.54, Ridge-i has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ridge-i's current Net Margin % of 9.13% is 259.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Ridge-i and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ridge-i's current Net Margin % is 9.13%, which is 62% above median its own 10-year median of 5.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ridge-i stock overvalued right now?
Based on GuruFocus' analysis, Ridge-i (TSE:5572) is currently considered Possible Value Trap. The stock's GF Value™ is 円5,194.44, compared to a current price of 円2,483.00 — trading 52.2% below its estimated fair value. The current Net Margin % is 9.13%, which is 62% above median its 10-year median of 5.64 and 259.4% above the Software industry median of 2.54. Ridge-i's overall GF Score™ is 56/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Ridge-i (TSE:5572), the current Net Margin % is 9.13% as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ridge-i (TSE:5572) Overvalued in 2026?

Based on GuruFocus' analysis, Ridge-i stock appears to be undervalued. The current stock price of 円2,483.00 is trading 52.2% below its estimated GF Value™ of 円5,194.44. GuruFocus considers Ridge-i to be Possible Value Trap.

Key valuation signals for TSE:5572:

  • Net Margin %: 9.13% (62% above median its 10-year median of 5.64)
  • GF Value™: 円5,194.44 vs. price of 円2,483.00 (52.2% below fair value)
  • GF Score™: 56/100 with 1 warning sign
  • Industry Position: 259.4% above the Software median (#1040 of 2827)

No single metric tells the full story. See the TSE:5572 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ridge-i Business Description

Address 1-6-1 Otemachi, Otemachi Building 438, Chiyoda-ku,, Tokyo, JPN, 100-0004
Ridge-i Inc is engaged in the consulting and development of AI/deep learning technology; provision of joint ventures, licenses, maintenance models, products developed in-house and provision of AI analysis solutions using satellite data.
56GF Score

Get the complete analysis for TSE:5572

Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,483.00
Price
円5,194.44
GF Value