(RWAY) Runway Growth Finance - Ratings and Ratios
Senior Secured Loans, Business Development, Financial Investments
RWAY EPS (Earnings per Share)
RWAY Revenue
Description: RWAY Runway Growth Finance
Runway Growth Finance Corp (NASDAQ:RWAY) is a business development company that specializes in investing in senior-secured loans to late-stage and growth companies, primarily in the technology, life sciences, healthcare, and information services sectors. The companys investment portfolio includes a diverse range of industries, such as electronic equipment, systems software, and biotechnology.
To evaluate RWAYs performance, key performance indicators (KPIs) such as Net Asset Value (NAV) per share, dividend yield, and the ratio of debt-to-equity are crucial. A high NAV per share indicates a strong asset base, while a stable dividend yield suggests a consistent income stream for investors. Additionally, a reasonable debt-to-equity ratio is essential to ensure the companys financial health and ability to meet its obligations.
RWAYs investment strategy focuses on senior-secured loans, which typically offer a lower risk profile compared to other investment options. The companys investment size ranges from $10 million to $75 million, allowing it to diversify its portfolio and manage risk. By investing in growth-stage companies, RWAY aims to generate returns through interest income and potential equity upside.
To further assess RWAYs investment potential, analyzing its portfolio composition, industry diversification, and credit quality is essential. A well-diversified portfolio with a strong credit profile can indicate a lower risk of default and more stable returns. Furthermore, evaluating the companys management team and their experience in the industry can provide insights into their ability to navigate complex investment decisions.
RWAY Stock Overview
| Market Cap in USD | 390m |
| Sub-Industry | Asset Management & Custody Banks |
| IPO / Inception | 2021-10-21 |
RWAY Stock Ratings
| Growth Rating | 56.6% |
| Fundamental | 60.7% |
| Dividend Rating | 84.0% |
| Return 12m vs S&P 500 | -4.59% |
| Analyst Rating | 3.67 of 5 |
RWAY Dividends
| Dividend Yield 12m | 14.71% |
| Yield on Cost 5y | 19.14% |
| Annual Growth 5y | 63.58% |
| Payout Consistency | 78.8% |
| Payout Ratio | 91.9% |
RWAY Growth Ratios
| Growth Correlation 3m | 39.3% |
| Growth Correlation 12m | 59.2% |
| Growth Correlation 5y | 76.3% |
| CAGR 5y | 9.78% |
| CAGR/Max DD 3y | 0.37 |
| CAGR/Mean DD 3y | 1.19 |
| Sharpe Ratio 12m | 0.79 |
| Alpha | 0.16 |
| Beta | 0.710 |
| Volatility | 24.57% |
| Current Volume | 224.6k |
| Average Volume 20d | 216k |
| Stop Loss | 9.9 (-3.2%) |
| Signal | -0.08 |
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 (44.1m) ratio: -0.14 <= 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 44.1m / 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) 60.67
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 5.09% = 2.54 |
| 3. FCF Margin 30.05% = 7.50 |
| 4. Debt/Equity 1.19 = 1.83 |
| 5. Debt/Ebitda 13.45 = -2.50 |
| 6. ROIC - WACC (= -3.27)% = -4.08 |
| 7. RoE 16.93% = 1.41 |
| 8. Rev. Trend 73.92% = 5.54 |
| 9. EPS Trend -31.57% = -1.58 |
What is the price of RWAY shares?
Over the past week, the price has changed by -3.31%, over one month by -3.94%, over three months by +5.38% and over the past year by +13.28%.
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 12.34 USD . This means that RWAY is currently undervalued and has a potential upside of +20.63% (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 | 11.5 | 12.7% |
| Analysts Target Price | 11.5 | 12.7% |
| ValueRay Target Price | 13.3 | 29.5% |
Last update: 2025-09-05 04:58
RWAY Fundamental Data Overview
CCE Cash And Equivalents = 5.96m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 5.734
P/E Forward = 7.1839
P/S = 2.7694
P/B = 0.784
P/EG = 1.1571
Beta = 0.615
Revenue TTM = 165.6m USD
EBIT TTM = 14.4m USD
EBITDA TTM = 44.1m USD
Long Term Debt = 568.7m USD (from nonCurrentLiabilitiesTotal, last fiscal year)
Short Term Debt = 25.1m USD (from totalCurrentLiabilities, last quarter)
Debt = 593.8m USD (Calculated: Short Term 25.1m + Long Term 568.7m)
Net Debt = -5.96m USD (from netDebt column, last quarter)
Enterprise Value = 978.3m USD (390.4m + Debt 593.8m - CCE 5.96m)
Interest Coverage Ratio = 0.34 (Ebit TTM 14.4m / Interest Expense TTM 42.0m)
FCF Yield = 5.09% (FCF TTM 49.7m / Enterprise Value 978.3m)
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)
Tobins Q-Ratio = -19.19 (set to none) (Enterprise Value 978.3m / Book Value Of Equity -51.0m)
Interest Expense / Debt = 1.98% (Interest Expense 11.8m / Debt 593.8m)
Taxrate = 21.0% (US default)
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 = 1.19 (Debt 593.8m / last Quarter total Stockholder Equity 498.9m)
Debt / EBITDA = 13.45 (Net Debt -5.96m / EBITDA 44.1m)
Debt / FCF = 11.94 (Debt 593.8m / FCF TTM 49.7m)
Total Stockholder Equity = 506.1m (last 4 quarters mean)
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 = 1.34% (Ebit 14.4m / (Equity 506.1m + L.T.Debt 568.7m))
RoIC = 1.10% (NOPAT 11.4m / Invested Capital 1.03b)
WACC = 4.37% (E(390.4m)/V(984.2m) * Re(8.63%)) + (D(593.8m)/V(984.2m) * Rd(1.98%) * (1-Tc(0.21)))
Shares Correlation 3-Years: -95.35 | Cagr: -0.85%
Discount Rate = 8.63% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 67.85% ; FCFE base≈106.2m ; Y1≈69.7m ; Y5≈31.9m
Fair Price DCF = 15.69 (DCF Value 568.4m / Shares Outstanding 36.2m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -31.57 | EPS CAGR: 1.99% | SUE: -0.14 | # QB: 0
Revenue Correlation: 73.92 | Revenue CAGR: 36.57%
Additional Sources for RWAY Stock
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Fund Manager Positions: Dataroma | Stockcircle