(RWAY) Runway Growth Finance - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NASDAQ (USA) | Market Cap: 282m USD | Total Return: -24.7% in 12m
Industry Rotation: -5.1
Avg Turnover: 3.70M
EPS Trend: -34.8%
Qual. Beats: -1
Rev. Trend: 39.4%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Runway Growth Finance Corp. (RWAY) operates as a business development company (BDC) focused on providing senior-secured loans to late-stage and growth-oriented private companies. The firm targets high-growth sectors including technology, life sciences, healthcare, and specialized business services, typically originating loan facilities ranging from $10 million to $75 million.
As a BDC, the company’s business model involves generating income through interest payments and commitment fees while benefiting from the senior-secured position which provides priority claim on borrower assets in the event of default. This lending structure is often utilized by companies seeking non-dilutive capital to scale operations without issuing additional equity. Investors seeking deeper insights into the underlying credit quality and portfolio risk of RWAY may find ValueRay a useful resource for further analysis.
- Floating rate senior secured loan yields drive net interest income margins
- Venture capital funding cycles dictate loan demand and portfolio growth velocity
- Credit quality stability in late-stage tech and life sciences prevents valuation loss
- Federal Reserve interest rate policy shifts impact core lending profitability spreads
- Strategic acquisition by BC Partners provides capital scale for larger deal execution
| Net Income: -2.63m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA 7.08 > 1.0 |
| NWC/Revenue: 10.72% < 20% (prev 5.29%; Δ 5.43% < -1%) |
| CFO/TA 0.13 > 3% & CFO 116.7m > Net Income -2.63m |
| Net Debt (439.4m) to EBITDA (7.85m): 55.96 < 3 |
| Current Ratio: error (cannot be calculated; needs correct Total Current Assets and Liabilities) |
| Outstanding Shares: last quarter (36.1m) vs 12m ago -3.25% < -2% |
| Gross Margin: 65.53% > 18% (prev 0.66%; Δ 6.49k% > 0.5%) |
| Asset Turnover: 10.45% > 50% (prev 10.96%; Δ -0.51% > 0%) |
| Interest Coverage Ratio: 0.20 > 6 (EBITDA TTM 7.85m / Interest Expense TTM 38.5m) |
| A: 0.01 (Total Current Assets 10.9m - Total Current Liabilities 0.0) / Total Assets 904.9m |
| B: -0.11 (Retained Earnings -96.4m / Total Assets 904.9m) |
| C: 0.01 (EBIT TTM 7.85m / Avg Total Assets 968.9m) |
| D: -0.21 (Book Value of Equity -96.0m / Total Liabilities 466.7m) |
| Altman-Z'' Score: -0.43 = B |
Over the past week, the price has changed by -0.62%, over one month by -1.66%, over three months by -17.86% and over the past year by -24.73%.
- StrongBuy: 3
- Buy: 0
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 8.6 | 36.9% |
P/S = 2.1494
P/B = 0.6342
P/EG = 1.1571
Revenue TTM = 101.3m USD
EBIT TTM = 7.85m USD
EBITDA TTM = 7.85m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 441.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 439.4m USD (from netDebt column, last quarter)
Enterprise Value = 721.8m USD (282.4m + Debt 441.7m - CCE 2.31m)
Interest Coverage Ratio = 0.20 (Ebit TTM 7.85m / Interest Expense TTM 38.5m)
EV/FCF = 6.18x (Enterprise Value 721.8m / FCF TTM 116.7m)
FCF Yield = 16.17% (FCF TTM 116.7m / Enterprise Value 721.8m)
FCF Margin = 115.3% (FCF TTM 116.7m / Revenue TTM 101.3m)
Net Margin = -2.60% (Net Income TTM -2.63m / Revenue TTM 101.3m)
Gross Margin = 65.53% ((Revenue TTM 101.3m - Cost of Revenue TTM 34.9m) / Revenue TTM)
Gross Margin QoQ = 77.65% (prev 54.54%)
Tobins Q-Ratio = 0.80 (Enterprise Value 721.8m / Total Assets 904.9m)
Interest Expense / Debt = 2.37% (Interest Expense 10.5m / Debt 441.7m)
Taxrate = 21.0% (US default 21%)
NOPAT = 6.20m (EBIT 7.85m * (1 - 21.00%))
Current Ratio = unknown (Total Current Assets 10.9m / Total Current Liabilities 0.0)
Debt / Equity = 1.01 (Debt 441.7m / totalStockholderEquity, last quarter 438.2m)
Debt / EBITDA = 55.96 (Net Debt 439.4m / EBITDA 7.85m)
Debt / FCF = 3.76 (Net Debt 439.4m / FCF TTM 116.7m)
Total Stockholder Equity = 477.9m (last 4 quarters mean from totalStockholderEquity)
RoA = -0.27% (Net Income -2.63m / Total Assets 904.9m)
RoE = -0.55% (Net Income TTM -2.63m / Total Stockholder Equity 477.9m)
RoCE = 0.87% (EBIT 7.85m / Capital Employed (Total Assets 904.9m - Current Liab 0.0))
RoIC = 0.65% (NOPAT 6.20m / Invested Capital 960.9m)
WACC = 4.37% (E(282.4m)/V(724.1m) * Re(8.28%) + D(441.7m)/V(724.1m) * Rd(2.37%) * (1-Tc(0.21)))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -84.85 | Cagr: -5.62%
[DCF] Terminal Value 80.82% ; FCFF base≈94.1m ; Y1≈61.8m ; Y5≈28.3m
[DCF] Fair Price = 10.77 (EV 896.8m - Net Debt 439.4m = Equity 457.4m / Shares 42.5m; r=6.0% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -34.77 | EPS CAGR: -4.89% | SUE: -1.37 | # QB: -1
Revenue Correlation: 39.42 | Revenue CAGR: 82.06% | SUE: 0.13 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.30 | Chg30d=-17.32% | Revisions=-33% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.32 | Chg30d=-13.51% | Revisions=-25% | Analysts=5
EPS current Year (2026-12-31): EPS=1.24 | Chg30d=-13.29% | Revisions=-56% | GrowthEPS=-20.0% | GrowthRev=-3.7%
EPS next Year (2027-12-31): EPS=1.29 | Chg30d=-10.14% | Revisions=-50% | GrowthEPS=+4.3% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: -56%