Cal Redwood Acquisition Corp. Class A Ordinary Shares (CRAQ)

FairStock Score: 22/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I want a business I can understand, with durable earnings and a margin of safety. Cal Redwood is not that—at least not yet. It is a shell with no significant operations; its filed net income is $5.1 million for FY2025, $2.3 million in fiscal Q3 2025 (quarter ended 2025-09-30), $1.9 million in fiscal Q1 2026 (quarter ended 2026-03-31), $1.7 million in fiscal Q2 2026 (quarter ended 2026-06-30), and $599,557 in fiscal Q2 2025. No revenue is reported. Those profits are likely trust or interest effects, not an operating engine. A moat? None—there is no product, customer, or competitive position until a merger is completed. Financial health on the surface looks clean: FairStock's Altman Z-Score is 24.86 and trailing free cash flow is only -$495,754. But the Piotroski F-Score is 2/9, and the Lynch category is none because only one year of filed results exists. Valuation is the real problem. At the 2026-10-13 close of $10.41, the market cap is $398.5 million. FairStock's calculated P/E is 40.04 and its Graham Number is $6.57, so the price is 58.45% above that conservative value. The 52-week range of $10.05-$10.43 means investors are paying near the high. Growth is not meaningful: the 187.85% profit growth in the supplied FairStock data reflects small, uneven trust income, not scalable operations. This is a deal ticket, not a Graham bargain. Until a target is identified, due diligence is impossible.

In plain English: Cal Redwood Acquisition Corp. is a shell company with no real business yet. It plans to merge with a company in technology, media, or telecom, but it does not sell products or services today. Its reported profits come from money in the bank or trust, not operations. At $10.41, the stock is near the top of its 52-week range and looks expensive compared with its current numbers.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer