Runway Growth Finance Corp. Fundamental Analysis (NASDAQ: RWAY)
Runway Growth Finance Corp. Fundamental Analysis (NASDAQ: RWAY)
Runway Growth Finance Corp. (NASDAQ: RWAY) shows moderate financial fundamentals with a PE ratio of 61.87, profit margin of 12.42%, and ROE of 1.62%. The company generates $0.1B in annual revenue with strong year-over-year growth of 12.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RWAY's fundamental strength across five key dimensions:
Efficiency Score
WeakRWAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateRWAY shows balanced valuation metrics.
Growth Score
ModerateRWAY shows steady but slowing expansion.
Financial Health Score
ModerateRWAY shows balanced financial health with some risks.
Profitability Score
WeakRWAY struggles to sustain strong margins.
Key Financial Metrics
Is RWAY Expensive or Cheap?
P/E Ratio
RWAY trades at 61.87 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RWAY's PEG of -0.55 indicates potential undervaluation.
Price to Book
The market values Runway Growth Finance Corp. at 0.57 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -12.61 times EBITDA. This is generally considered low.
How Well Does RWAY Make Money?
Net Profit Margin
For every $100 in sales, Runway Growth Finance Corp. keeps $12.42 as profit after all expenses.
Operating Margin
Core operations generate 49.99 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.62 in profit for every $100 of shareholder equity.
ROA
Runway Growth Finance Corp. generates $0.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Runway Growth Finance Corp. generates limited operating cash flow of $-76.06M, signaling weaker underlying cash strength.
Free Cash Flow
Runway Growth Finance Corp. generates weak or negative free cash flow of $-76.06M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.79 in free cash annually.
FCF Yield
RWAY converts -26.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
61.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How RWAY Stacks Against Its Sector Peers
| Metric | RWAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 61.87 | 21.19 | Worse (Expensive) |
| ROE | 1.62% | 665.00% | Weak |
| Net Margin | 12.42% | 878.00% | Weak |
| Debt/Equity | 1.38 | 0.80 | Weak (High Leverage) |
| Current Ratio | 1.05 | 907.04 | Neutral |
| ROA | 0.64% | 4792411.00% | Weak |
RWAY outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Runway Growth Finance Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
201.37%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-18.28%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
298.03%
Industry Style: Value, Dividend, Cyclical
High Growth