Overview Dividends

(RWAY) Runway Growth Finance - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US78163D1000

Senior Loans, Growth Stage

RWAY EPS (Earnings per Share)

EPS Growth (3y CAGR): -1.64%
EPS Trend (3y Corr): -60.9%

Last SUE: 0.86σ

RWAY Revenue

Revenue Growth (3y CAGR): 9.06%
Revenue Trend (3y Corr): 6.0%

Last SUE: 0.08σ

Risk via 10d forecast
Volatility	22.6%
Value at Risk 5%th	34.4%
Relative Tail Risk	-7.42%

Reward TTM
Sharpe Ratio	0.22
Alpha	-3.31

Character TTM
Hurst Exponent	0.383
Beta	0.586
Beta Downside	0.803

Drawdowns 3y
Max DD	26.13%
Mean DD	8.34%
Median DD	8.22%

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	356m
Sub-Industry	Asset Management & Custody Banks
IPO / Inception	2021-10-21
Return 12m vs S&P 500	-7.81%
Analyst Rating	3.67 of 5

RWAY Dividends

Dividend Yield	15.04%
Yield on Cost 5y	18.87%
Yield CAGR 5y	19.19%
Payout Consistency	98.5%
Payout Ratio	86.4%

RWAY Growth Ratios

CAGR 3y	6.82%
CAGR/Max DD Calmar Ratio	0.26
CAGR/Mean DD Pain Ratio	0.82
Current Volume	1777.9k
Average Volume	252k

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (54.9m TTM) > 0 and > 6% of Revenue (6% = 7.33m TTM)

FCFTA 0.11 (>2.0%) and ΔFCFTA 0.46pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 6.72% (prev 0.44%; Δ 6.28pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.19 (>3.0%) and CFO 179.6m > Net Income 54.9m (YES >=105%, WARN >=100%)

Net Debt (-7.92m) to EBITDA (47.1m) ratio: -0.17 <= 3.0 (WARN <= 3.5)

Current Ratio 2.06 (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 76.38% (prev 66.42%; Δ 9.96pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 11.98% (prev 9.64%; Δ 2.34pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -0.96 (EBITDA TTM 47.1m / Interest Expense TTM 39.5m) >= 6 (WARN >= 3)

Altman Z'' 79.57

(A) 0.01 = (Total Current Assets 16.0m - Total Current Liabilities 7.74m) / Total Assets 963.3m

(B) -0.06 = Retained Earnings (Balance) -56.3m / Total Assets 963.3m

(D) 76.14 = Book Value of Equity 36.08b / Total Liabilities 473.8m

Total Rating: 79.57 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 57.32

1. Piotroski 6.0pt = 1.0

2. FCF Yield 11.86% = 5.0

3. FCF Margin 87.39% = 7.50

4. Debt/Equity 1.13 = 1.90

5. Debt/Ebitda -0.17 = 2.50

6. ROIC - WACC (= -7.11)% = -8.89

7. RoE 10.94% = 0.91

8. Rev. Trend 5.98% = 0.45

9. EPS Trend -60.89% = -3.04

What is the price of RWAY shares?

As of November 18, 2025, the stock is trading at USD 9.31 with a total of 1,777,923 shares traded.
Over the past week, the price has changed by -1.91%, over one month by -2.70%, over three months by -9.55% and over the past year by +5.61%.

Is Runway Growth Finance a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Runway Growth Finance is currently (November 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 57.32 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of RWAY is around 10.01 USD . This means that RWAY is currently overvalued and has a potential downside of 7.52%.

Is RWAY a buy, sell or hold?

Runway Growth Finance has received a consensus analysts rating of 3.67. Therefor, it is recommend to hold RWAY.

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	11.2	20%
Analysts Target Price	11.2	20%
ValueRay Target Price	10.7	15.3%

RWAY Fundamental Data Overview November 17, 2025

Market Cap USD = 355.9m (355.9m USD * 1.0 USD.USD)
P/E Trailing = 6.7466
P/E Forward = 6.6313
P/S = 2.523
P/B = 0.7271
P/EG = 1.1571
Beta = 0.59
Revenue TTM = 122.2m USD
EBIT TTM = -37.9m USD
EBITDA TTM = 47.1m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 552.3m USD (from shortLongTermDebtTotal, last fiscal year)
Net Debt = -7.92m USD (from netDebt column, last quarter)
Enterprise Value = 900.3m USD (355.9m + Debt 552.3m - CCE 7.92m)
Interest Coverage Ratio = -0.96 (Ebit TTM -37.9m / Interest Expense TTM 39.5m)
FCF Yield = 11.86% (FCF TTM 106.8m / Enterprise Value 900.3m)
FCF Margin = 87.39% (FCF TTM 106.8m / Revenue TTM 122.2m)
Net Margin = 44.94% (Net Income TTM 54.9m / Revenue TTM 122.2m)
Gross Margin = 76.38% ((Revenue TTM 122.2m - Cost of Revenue TTM 28.9m) / Revenue TTM)
Gross Margin QoQ = 100.0% (prev 67.10%)
Tobins Q-Ratio = 0.93 (Enterprise Value 900.3m / Total Assets 963.3m)
Interest Expense / Debt = 1.92% (Interest Expense 10.6m / Debt 552.3m)
Taxrate = 21.0% (US default 21%)
NOPAT = -29.9m (EBIT -37.9m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 2.06 (Total Current Assets 16.0m / Total Current Liabilities 7.74m)
Debt / Equity = 1.13 (Debt 552.3m / totalStockholderEquity, last quarter 489.5m)
Debt / EBITDA = -0.17 (Net Debt -7.92m / EBITDA 47.1m)
Debt / FCF = -0.07 (Net Debt -7.92m / FCF TTM 106.8m)
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 = -3.97% (EBIT -37.9m / Capital Employed (Total Assets 963.3m - Current Liab 7.74m))
RoIC = -2.99% (negative operating profit) (NOPAT -29.9m / Invested Capital 1.00b)
WACC = 4.13% (E(355.9m)/V(908.3m) * Re(8.17%) + D(552.3m)/V(908.3m) * Rd(1.92%) * (1-Tc(0.21)))
Discount Rate = 8.17% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -5.43%
[DCF Debug] Terminal Value 69.91% ; FCFE base≈109.8m ; Y1≈72.1m ; Y5≈33.0m
Fair Price DCF = 17.55 (DCF Value 634.3m / Shares Outstanding 36.1m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: -60.89 | EPS CAGR: -1.64% | SUE: 0.86 | # QB: 1
Revenue Correlation: 5.98 | Revenue CAGR: 9.06% | SUE: 0.08 | # QB: 0

Additional Sources for RWAY Stock

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