(RWAY) Runway Growth Finance - Ratings and Ratios
Senior Loans, Growth Stage
Dividends
| Dividend Yield | 15.28% |
| Yield on Cost 5y | 18.87% |
| Yield CAGR 5y | 19.19% |
| Payout Consistency | 98.5% |
| Payout Ratio | 86.4% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 21.8% |
| Value at Risk 5%th | 33.3% |
| Relative Tail Risk | -7.24% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.01 |
| Alpha | -10.86 |
| CAGR/Max DD | 0.22 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.407 |
| Beta | 0.590 |
| Beta Downside | 0.805 |
| Drawdowns 3y | |
|---|---|
| Max DD | 26.13% |
| Mean DD | 8.53% |
| Median DD | 8.57% |
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.
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income (54.9m TTM) > 0 and > 6% of Revenue (6% = 6.38m TTM) |
| FCFTA 0.04 (>2.0%) and ΔFCFTA 0.40pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue -13.49% (prev 0.44%; Δ -13.94pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.04 (>3.0%) and CFO 42.3m <= Net Income 54.9m (YES >=105%, WARN >=100%) |
| Net Debt (435.6m) to EBITDA (54.9m) ratio: 7.93 <= 3.0 (WARN <= 3.5) |
| Current Ratio 0.53 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (36.2m) change vs 12m ago -5.64% (target <= -2.0% for YES) |
| Gross Margin 64.10% (prev 66.42%; Δ -2.33pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 10.44% (prev 9.64%; Δ 0.79pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -0.99 (EBITDA TTM 54.9m / Interest Expense TTM 38.2m) >= 6 (WARN >= 3) |
Altman Z'' -0.66
| (A) -0.01 = (Total Current Assets 16.0m - Total Current Liabilities 30.3m) / Total Assets 963.3m |
| (B) -0.06 = Retained Earnings (Balance) -56.3m / Total Assets 963.3m |
| (C) -0.04 = EBIT TTM -37.9m / Avg Total Assets 1.02b |
| (D) -0.12 = Book Value of Equity -56.0m / Total Liabilities 473.8m |
| Total Rating: -0.66 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 55.22
| 1. Piotroski 3.0pt |
| 2. FCF Yield 5.66% |
| 3. FCF Margin 39.80% |
| 4. Debt/Equity 0.91 |
| 5. Debt/Ebitda 7.93 |
| 6. ROIC - WACC (= -7.35)% |
| 7. RoE 10.94% |
| 8. Rev. Trend 46.38% |
| 9. EPS Trend 41.44% |
What is the price of RWAY shares?
Over the past week, the price has changed by -0.33%, over one month by -3.78%, over three months by -11.59% and over the past year by +0.62%.
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 | 10.9 | 18.9% |
| Analysts Target Price | 10.9 | 18.9% |
| ValueRay Target Price | 10.5 | 14.1% |
RWAY Fundamental Data Overview November 26, 2025
P/E Trailing = 5.9178
P/E Forward = 5.988
P/S = 2.2131
P/B = 0.6562
P/EG = 1.1571
Beta = 0.59
Revenue TTM = 106.4m USD
EBIT TTM = -37.9m USD
EBITDA TTM = 54.9m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 443.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 435.6m USD (from netDebt column, last quarter)
Enterprise Value = 747.8m USD (312.2m + Debt 443.5m - CCE 7.92m)
Interest Coverage Ratio = -0.99 (Ebit TTM -37.9m / Interest Expense TTM 38.2m)
FCF Yield = 5.66% (FCF TTM 42.3m / Enterprise Value 747.8m)
FCF Margin = 39.80% (FCF TTM 42.3m / Revenue TTM 106.4m)
Net Margin = 51.60% (Net Income TTM 54.9m / Revenue TTM 106.4m)
Gross Margin = 64.10% ((Revenue TTM 106.4m - Cost of Revenue TTM 38.2m) / Revenue TTM)
Gross Margin QoQ = 55.47% (prev 67.10%)
Tobins Q-Ratio = 0.78 (Enterprise Value 747.8m / Total Assets 963.3m)
Interest Expense / Debt = 2.11% (Interest Expense 9.35m / Debt 443.5m)
Taxrate = 21.0% (US default 21%)
NOPAT = -29.9m (EBIT -37.9m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 0.53 (Total Current Assets 16.0m / Total Current Liabilities 30.3m)
Debt / Equity = 0.91 (Debt 443.5m / totalStockholderEquity, last quarter 489.5m)
Debt / EBITDA = 7.93 (Net Debt 435.6m / EBITDA 54.9m)
Debt / FCF = 10.29 (Net Debt 435.6m / FCF TTM 42.3m)
Total Stockholder Equity = 501.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.70% (Net Income 54.9m / Total Assets 963.3m)
RoE = 10.94% (Net Income TTM 54.9m / Total Stockholder Equity 501.6m)
RoCE = -4.06% (EBIT -37.9m / Capital Employed (Total Assets 963.3m - Current Liab 30.3m))
RoIC = -2.99% (negative operating profit) (NOPAT -29.9m / Invested Capital 1.00b)
WACC = 4.36% (E(312.2m)/V(755.7m) * Re(8.19%) + D(443.5m)/V(755.7m) * Rd(2.11%) * (1-Tc(0.21)))
Discount Rate = 8.19% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -5.43%
[DCF Debug] Terminal Value 69.82% ; FCFE base≈42.6m ; Y1≈28.0m ; Y5≈12.8m
Fair Price DCF = 6.79 (DCF Value 245.2m / Shares Outstanding 36.1m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 41.44 | EPS CAGR: 12.12% | SUE: 0.86 | # QB: 1
Revenue Correlation: 46.38 | Revenue CAGR: 0.14% | SUE: -0.66 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.36 | Chg30d=-0.013 | Revisions Net=-2 | Analysts=9
EPS next Year (2026-12-31): EPS=1.53 | Chg30d=+0.009 | Revisions Net=+3 | Growth EPS=-3.9% | Growth Revenue=-3.0%
Additional Sources for RWAY Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle