(RWAY) Runway Growth Finance - Ratings and Ratios
Senior Loans, Growth Stage
RWAY EPS (Earnings per Share)
RWAY Revenue
Description: RWAY Runway Growth Finance October 25, 2025
Runway Growth Finance Corp. (NASDAQ:RWAY) is a Business Development Company (BDC) that focuses on providing senior-secured loans to late-stage and growth-phase companies. Its investment mandate targets loan sizes between $10 million and $75 million, positioning the firm as a direct lender rather than an equity investor.
The BDC concentrates on sectors where technology-driven growth is accelerating, including electronic equipment and instruments, systems and application software, hardware, storage, and specialized consumer services. It also targets healthcare-related areas such as biotechnology, healthcare technology, and medical equipment, as well as business services like data processing, outsourced services, and human-resources platforms.
According to the most recent Form 10-K (Q2 2024), RWAY reported a net asset value (NAV) of roughly $450 million and a distribution yield of 6.2%, with an average leverage ratio of 1.2 ×. The portfolio’s weighted-average loan maturity is about 4.5 years, and the credit quality is anchored by senior-secured structures that typically command a 300–400 basis-point spread over LIBOR/SOFR. Key macro drivers include the current high-interest-rate environment, which widens spreads for senior-secured debt, and sector-specific tailwinds such as sustained AI-related capital expenditures and robust biotech financing pipelines.
For a deeper, data-driven look at RWAY’s loan composition, credit metrics, and scenario analysis, you may find the ValueRay research portal useful as a next step in your due-diligence process.
RWAY Stock Overview
| Market Cap in USD | 357m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 2021-10-21 |
RWAY Stock Ratings
| Growth Rating | 45.1% |
| Fundamental | 64.4% |
| Dividend Rating | 87.6% |
| Return 12m vs S&P 500 | -3.96% |
| Analyst Rating | 3.67 of 5 |
RWAY Dividends
| Dividend Yield 12m | 14.86% |
| Yield on Cost 5y | 19.14% |
| Annual Growth 5y | 92.74% |
| Payout Consistency | 88.8% |
| Payout Ratio | 123.5% |
RWAY Growth Ratios
| Growth Correlation 3m | -88.4% |
| Growth Correlation 12m | 40% |
| Growth Correlation 5y | 77.1% |
| CAGR 5y | 7.35% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.28 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.89 |
| Sharpe Ratio 12m | -0.18 |
| Alpha | 1.86 |
| Beta | 0.594 |
| Volatility | 20.83% |
| Current Volume | 337.6k |
| Average Volume 20d | 275.1k |
| Stop Loss | 9.5 (-3.9%) |
| Signal | 0.36 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (85.7m TTM) > 0 and > 6% of Revenue (6% = 9.93m TTM) |
| FCFTA 0.05 (>2.0%) and ΔFCFTA -12.92pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -6.19% (prev -4.50%; Δ -1.68pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 122.6m > Net Income 85.7m (YES >=105%, WARN >=100%) |
| Net Debt (-5.96m) to EBITDA (109.7m) ratio: -0.05 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.59 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (37.1m) change vs 12m ago -5.30% (target <= -2.0% for YES) |
| Gross Margin 68.17% (prev 74.84%; Δ -6.67pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 15.62% (prev 12.98%; Δ 2.64pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 0.34 (EBITDA TTM 109.7m / Interest Expense TTM 42.0m) >= 6 (WARN >= 3) |
Altman Z'' -0.23
| (A) -0.01 = (Total Current Assets 14.8m - Total Current Liabilities 25.1m) / Total Assets 1.04b |
| (B) -0.05 = Retained Earnings (Balance) -51.4m / Total Assets 1.04b |
| (C) 0.01 = EBIT TTM 14.4m / Avg Total Assets 1.06b |
| (D) -0.09 = Book Value of Equity -51.0m / Total Liabilities 542.4m |
| Total Rating: -0.23 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 64.42
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 5.74% = 2.87 |
| 3. FCF Margin 30.05% = 7.50 |
| 4. Debt/Equity 1.03 = 1.99 |
| 5. Debt/Ebitda -0.05 = 2.50 |
| 6. ROIC - WACC (= -3.32)% = -4.15 |
| 7. RoE 16.93% = 1.41 |
| 8. Rev. Trend 73.92% = 5.54 |
| 9. EPS Trend -64.94% = -3.25 |
What is the price of RWAY shares?
Over the past week, the price has changed by +0.00%, over one month by -0.60%, over three months by -5.90% and over the past year by +9.51%.
Is Runway Growth Finance a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RWAY is around 11.78 USD . This means that RWAY is currently undervalued and has a potential upside of +19.11% (Margin of Safety).
Is RWAY a buy, sell or hold?
- Strong Buy: 3
- Buy: 0
- Hold: 6
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the RWAY price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 11.6 | 17% |
| Analysts Target Price | 11.6 | 17% |
| ValueRay Target Price | 12.7 | 27.9% |
RWAY Fundamental Data Overview November 02, 2025
P/E Trailing = 5.2606
P/E Forward = 6.8074
P/S = 2.535
P/B = 0.7427
P/EG = 1.1571
Beta = 0.594
Revenue TTM = 165.6m USD
EBIT TTM = 14.4m USD
EBITDA TTM = 109.7m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 515.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -5.96m USD (from netDebt column, last quarter)
Enterprise Value = 867.4m USD (357.4m + Debt 515.9m - CCE 5.96m)
Interest Coverage Ratio = 0.34 (Ebit TTM 14.4m / Interest Expense TTM 42.0m)
FCF Yield = 5.74% (FCF TTM 49.7m / Enterprise Value 867.4m)
FCF Margin = 30.05% (FCF TTM 49.7m / Revenue TTM 165.6m)
Net Margin = 51.74% (Net Income TTM 85.7m / Revenue TTM 165.6m)
Gross Margin = 68.17% ((Revenue TTM 165.6m - Cost of Revenue TTM 52.7m) / Revenue TTM)
Gross Margin QoQ = 75.83% (prev 48.51%)
Tobins Q-Ratio = 0.83 (Enterprise Value 867.4m / Total Assets 1.04b)
Interest Expense / Debt = 2.28% (Interest Expense 11.8m / Debt 515.9m)
Taxrate = 21.0% (US default 21%)
NOPAT = 11.4m (EBIT 14.4m * (1 - 21.00%))
Current Ratio = 0.59 (Total Current Assets 14.8m / Total Current Liabilities 25.1m)
Debt / Equity = 1.03 (Debt 515.9m / totalStockholderEquity, last quarter 498.9m)
Debt / EBITDA = -0.05 (Net Debt -5.96m / EBITDA 109.7m)
Debt / FCF = -0.12 (Net Debt -5.96m / FCF TTM 49.7m)
Total Stockholder Equity = 506.1m (last 4 quarters mean from totalStockholderEquity)
RoA = 8.23% (Net Income 85.7m / Total Assets 1.04b)
RoE = 16.93% (Net Income TTM 85.7m / Total Stockholder Equity 506.1m)
RoCE = 1.42% (EBIT 14.4m / Capital Employed (Total Assets 1.04b - Current Liab 25.1m))
RoIC = 1.10% (NOPAT 11.4m / Invested Capital 1.03b)
WACC = 4.42% (E(357.4m)/V(873.3m) * Re(8.20%) + D(515.9m)/V(873.3m) * Rd(2.28%) * (1-Tc(0.21)))
Discount Rate = 8.20% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -81.65 | Cagr: -2.47%
[DCF Debug] Terminal Value 69.77% ; FCFE base≈106.2m ; Y1≈69.7m ; Y5≈31.9m
Fair Price DCF = 16.89 (DCF Value 610.4m / Shares Outstanding 36.1m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -64.94 | EPS CAGR: -58.65% | SUE: -4.0 | # QB: 0
Revenue Correlation: 73.92 | Revenue CAGR: 36.57% | SUE: -0.05 | # QB: 0
Additional Sources for RWAY Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle