Rising Dragon Acquisition Corp. Ordinary Shares (RDAC)

FairStock Score: 14/100 — RISKY

Key Financials

AI Analysis

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

As a Graham-style investor, I begin with what is real: Rising Dragon Acquisition Corp. is a shell company with no significant operations, no revenue in the filed figures, and a stated plan to find a merger partner. That is not a business with a moat; it is a pool of capital and a promise. FairStock's calculations at the 2026-10-13 close of $5.43 show a P/E of 36.20, a Graham Number of $2.93, and a margin of safety of -85.32%. The market cap is $18.7M. The company did report net income: $1.6M in FY2025 ended 2025-12-31, $452,318 in fiscal Q3 2025 ended 2025-09-30, $398,981 in fiscal Q2 2025 ended 2025-06-30, $211,963 in fiscal Q1 2026 ended 2026-03-31, and $84,657 in fiscal Q2 2026 ended 2026-06-30. But no revenue is reported, so those profits do not come from an operating business. Profit growth is -78.78%, trailing free cash flow is -$864,149, and FCF yield is -4.6%. Piotroski is 1/9 and ROCE is -1.36%, while Altman Z is 3.11. The FairStock Score is 14/100. Without a merger there is no durable earning power; with a merger there is execution, dilution, and target-quality risk. At $5.43, the price is far above the Graham Number. I see speculation, not a margin of safety.

In plain English: Rising Dragon Acquisition Corp. is a shell company with no real operations, looking to merge with another business. Its filed figures show small reported profits but no revenue, and the profit trend is shrinking. At $5.43, the price looks expensive compared with its modest earnings and a conservative value check of $2.93.

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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 (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