RUNWAY GROWTH FINANCE CORP (RWAY)
US78163D1000 - Common Stock
RWAY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 220 industry peers in the Capital Markets industry. While RWAY is still in line with the averages on profitability rating, there are concerns on its financial health. RWAY is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RWAY was profitable.
RWAY had a negative operating cash flow in the past year.
RWAY had positive earnings in each of the past 5 years.
In the past 5 years RWAY reported 4 times negative operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.77%, RWAY is in line with its industry, outperforming 57.60% of the companies in the same industry.
RWAY's Return On Equity of 8.00% is in line compared to the rest of the industry. RWAY outperforms 46.08% of its industry peers.
RWAY has a Return On Invested Capital of 5.08%. This is in the better half of the industry: RWAY outperforms 65.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RWAY is below the industry average of 6.99%.
The 3 year average ROIC (4.95%) for RWAY is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 8% | ||
| ROIC | 5.08% |
ROA(3y)4.37%
ROA(5y)5.16%
ROE(3y)7.08%
ROE(5y)7.73%
ROIC(3y)4.95%
ROIC(5y)5.05%
1.3 Margins
Looking at the Profit Margin, with a value of 27.05%, RWAY is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
In the last couple of years the Profit Margin of RWAY has declined.
Looking at the Operating Margin, with a value of 44.94%, RWAY is in the better half of the industry, outperforming 75.12% of the companies in the same industry.
RWAY's Operating Margin has declined in the last couple of years.
The Gross Margin of RWAY (49.56%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RWAY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.94% | ||
| PM (TTM) | 27.05% | ||
| GM | 49.56% |
OM growth 3Y-10.34%
OM growth 5Y-3.26%
PM growth 3Y-30.83%
PM growth 5Y-13.8%
GM growth 3Y-11.04%
GM growth 5Y-5.05%
2. Health
2.1 Basic Checks
Compared to 1 year ago, RWAY has about the same amount of shares outstanding.
The number of shares outstanding for RWAY has been increased compared to 5 years ago.
RWAY has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.67, we must say that RWAY is in the distress zone and has some risk of bankruptcy.
RWAY has a Altman-Z score (0.67) which is in line with its industry peers.
A Debt/Equity ratio of 1.07 is on the high side and indicates that RWAY has dependencies on debt financing.
With a Debt to Equity ratio value of 1.07, RWAY perfoms like the industry average, outperforming 47.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
RWAY has a Current Ratio of 0.14. This is a bad value and indicates that RWAY is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.14, RWAY is doing worse than 90.32% of the companies in the same industry.
RWAY has a Quick Ratio of 0.14. This is a bad value and indicates that RWAY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.14, RWAY is not doing good in the industry: 90.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The earnings per share for RWAY have decreased strongly by -12.44% in the last year.
Measured over the past years, RWAY shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.78% on average per year.
Looking at the last year, RWAY shows a decrease in Revenue. The Revenue has decreased by -7.24% in the last year.
RWAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 51.17% yearly.
EPS 1Y (TTM)-12.44%
EPS 3Y-13.65%
EPS 5Y-2.78%
EPS Q2Q%-24.07%
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y41.79%
Revenue growth 5Y51.17%
Sales Q2Q%0.24%
3.2 Future
Based on estimates for the next years, RWAY will show a decrease in Earnings Per Share. The EPS will decrease by -5.19% on average per year.
Based on estimates for the next years, RWAY will show a decrease in Revenue. The Revenue will decrease by -6.97% on average per year.
EPS Next Y-12.01%
EPS Next 2Y-8.04%
EPS Next 3Y-5.19%
EPS Next 5YN/A
Revenue Next Year-10.84%
Revenue Next 2Y-7.66%
Revenue Next 3Y-6.97%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RWAY is valuated cheaply with a Price/Earnings ratio of 6.38.
Based on the Price/Earnings ratio, RWAY is valued cheaper than 87.56% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.54, RWAY is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.61, the valuation of RWAY can be described as very cheap.
Based on the Price/Forward Earnings ratio, RWAY is valued cheaper than 92.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, RWAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 6.61 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RWAY's earnings are expected to decrease with -5.19% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.04%
EPS Next 3Y-5.19%
5. Dividend
5.1 Amount
RWAY has a Yearly Dividend Yield of 15.61%, which is a nice return.
RWAY's Dividend Yield is rather good when compared to the industry average which is at 9.57. RWAY pays more dividend than 88.94% of the companies in the same industry.
RWAY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.61% |
5.2 History
RWAY has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RWAY pays out 181.13% of its income as dividend. This is not a sustainable payout ratio.
DP181.13%
EPS Next 2Y-8.04%
EPS Next 3Y-5.19%
RUNWAY GROWTH FINANCE CORP
NASDAQ:RWAY (12/24/2024, 7:36:08 PM)
After market: 10.8 +0.02 (+0.19%)10.78
+0.26 (+2.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners49.45%
Inst Owner ChangeN/A
Ins Owners1.02%
Ins Owner Change0.01%
Market Cap402.63M
Analysts73.33
Price Target11.67 (8.26%)
Short Float %2.38%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.61% |
Dividend Growth(5Y)N/A
DP181.13%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.9%
Min EPS beat(2)-18.01%
Max EPS beat(2)-9.79%
EPS beat(4)0
Avg EPS beat(4)-9.69%
Min EPS beat(4)-18.01%
Max EPS beat(4)-0.4%
EPS beat(8)3
Avg EPS beat(8)-1.01%
EPS beat(12)7
Avg EPS beat(12)0.94%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-9.27%
Min Revenue beat(2)-11.44%
Max Revenue beat(2)-7.1%
Revenue beat(4)0
Avg Revenue beat(4)-10.03%
Min Revenue beat(4)-16.74%
Max Revenue beat(4)-4.83%
Revenue beat(8)2
Avg Revenue beat(8)-4.72%
Revenue beat(12)4
Avg Revenue beat(12)-2.57%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.54%
PT rev (3m)-4.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.95%
EPS NY rev (1m)-3.33%
EPS NY rev (3m)-3.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.42%
Revenue NY rev (1m)-2.64%
Revenue NY rev (3m)-2.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.38 | ||
| Fwd PE | 6.61 | ||
| P/S | 2.68 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.79 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.69
EY15.68%
EPS(NY)1.63
Fwd EY15.14%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)-0.16
OCFYN/A
SpS4.02
BVpS13.58
TBVpS13.58
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 8% | ||
| ROCE | 6.42% | ||
| ROIC | 5.08% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 5.09% | ||
| OM | 44.94% | ||
| PM (TTM) | 27.05% | ||
| GM | 49.56% | ||
| FCFM | N/A |
ROA(3y)4.37%
ROA(5y)5.16%
ROE(3y)7.08%
ROE(5y)7.73%
ROIC(3y)4.95%
ROIC(5y)5.05%
ROICexc(3y)4.98%
ROICexc(5y)5.2%
ROICexgc(3y)4.98%
ROICexgc(5y)5.2%
ROCE(3y)6.4%
ROCE(5y)7.42%
ROICexcg growth 3Y6.45%
ROICexcg growth 5Y14.07%
ROICexc growth 3Y6.42%
ROICexc growth 5Y14.05%
OM growth 3Y-10.34%
OM growth 5Y-3.26%
PM growth 3Y-30.83%
PM growth 5Y-13.8%
GM growth 3Y-11.04%
GM growth 5Y-5.05%
F-Score2
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.07 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.84 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.14 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 0.67 |
F-Score2
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.44%
EPS 3Y-13.65%
EPS 5Y-2.78%
EPS Q2Q%-24.07%
EPS Next Y-12.01%
EPS Next 2Y-8.04%
EPS Next 3Y-5.19%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.24%
Revenue growth 3Y41.79%
Revenue growth 5Y51.17%
Sales Q2Q%0.24%
Revenue Next Year-10.84%
Revenue Next 2Y-7.66%
Revenue Next 3Y-6.97%
Revenue Next 5YN/A
EBIT growth 1Y-13.89%
EBIT growth 3Y27.13%
EBIT growth 5Y46.25%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y97.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y97.48%
OCF growth 3YN/A
OCF growth 5YN/A