RUNWAY GROWTH FINANCE CORP (RWAY) Stock Fundamental Analysis
NASDAQ:RWAY - US78163D1000 - Common Stock
10.8 USD
-0.09 (-0.83%)
10.8 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RWAY. RWAY was compared to 239 industry peers in the Capital Markets industry. RWAY has a medium profitability rating, but doesn't score so well on its financial health evaluation. RWAY has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RWAY had positive earnings in the past year.
RWAY had a positive operating cash flow in the past year.
Each year in the past 5 years RWAY has been profitable.
In multiple years RWAY reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of RWAY (6.91%) is better than 82.85% of its industry peers.
RWAY's Return On Equity of 14.42% is fine compared to the rest of the industry. RWAY outperforms 77.41% of its industry peers.
The Return On Invested Capital of RWAY (4.67%) is better than 62.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RWAY is below the industry average of 7.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 14.42% | ||
| ROIC | 4.67% |
ROA(3y)4.56%
ROA(5y)5.44%
ROE(3y)9.34%
ROE(5y)9.12%
ROIC(3y)4.92%
ROIC(5y)4.87%
1.3 Margins
RWAY has a better Profit Margin (51.03%) than 92.05% of its industry peers.
In the last couple of years the Profit Margin of RWAY has remained more or less at the same level.
RWAY has a Operating Margin of 42.59%. This is in the better half of the industry: RWAY outperforms 75.73% of its industry peers.
In the last couple of years the Operating Margin of RWAY has declined.
RWAY's Gross Margin of 47.50% is in line compared to the rest of the industry. RWAY outperforms 53.97% of its industry peers.
In the last couple of years the Gross Margin of RWAY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.59% | ||
| PM (TTM) | 51.03% | ||
| GM | 47.5% |
OM growth 3Y-10.9%
OM growth 5Y-7.82%
PM growth 3Y-7.29%
PM growth 5Y0.32%
GM growth 3Y-11.88%
GM growth 5Y-7.98%
2. Health
2.1 Basic Checks
Compared to 1 year ago, RWAY has less shares outstanding
Compared to 5 years ago, RWAY has more shares outstanding
Compared to 1 year ago, RWAY has a worse debt to assets ratio.
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.
The Altman-Z score of RWAY (0.67) is comparable to the rest of the industry.
RWAY has a debt to FCF ratio of 4.56. This is a neutral value as RWAY would need 4.56 years to pay back of all of its debts.
RWAY has a Debt to FCF ratio of 4.56. This is in the better half of the industry: RWAY outperforms 70.29% of its industry peers.
A Debt/Equity ratio of 1.03 is on the high side and indicates that RWAY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.03, RWAY is in line with its industry, outperforming 50.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.56 | ||
| Altman-Z | 0.67 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.24 indicates that RWAY may have some problems paying its short term obligations.
With a Current ratio value of 0.24, RWAY is not doing good in the industry: 86.19% of the companies in the same industry are doing better.
RWAY has a Quick Ratio of 0.24. This is a bad value and indicates that RWAY is not financially healthy enough and could expect problems in meeting its short term obligations.
RWAY has a Quick ratio of 0.24. This is amonst the worse of the industry: RWAY underperforms 85.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The earnings per share for RWAY have decreased strongly by -12.09% in the last year.
The Earnings Per Share has been growing slightly by 5.06% on average over the past years.
Looking at the last year, RWAY shows a very negative growth in Revenue. The Revenue has decreased by -10.33% in the last year.
Measured over the past years, RWAY shows a very strong growth in Revenue. The Revenue has been growing by 21.29% on average per year.
EPS 1Y (TTM)-12.09%
EPS 3Y12.52%
EPS 5Y5.06%
EPS Q2Q%2.7%
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y26.53%
Revenue growth 5Y21.29%
Sales Q2Q%11.12%
3.2 Future
RWAY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.52% yearly.
The Revenue is expected to decrease by -5.74% on average over the next years.
EPS Next Y-2.64%
EPS Next 2Y-2.74%
EPS Next 3Y-3.52%
EPS Next 5YN/A
Revenue Next Year-5.53%
Revenue Next 2Y-4.1%
Revenue Next 3Y-5.74%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.75, which indicates a rather cheap valuation of RWAY.
Based on the Price/Earnings ratio, RWAY is valued cheaper than 91.21% of the companies in the same industry.
When comparing the Price/Earnings ratio of RWAY to the average of the S&P500 Index (27.13), we can say RWAY is valued rather cheaply.
RWAY is valuated cheaply with a Price/Forward Earnings ratio of 7.00.
Based on the Price/Forward Earnings ratio, RWAY is valued cheaper than 92.47% of the companies in the same industry.
RWAY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 7 |
4.2 Price Multiples
RWAY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RWAY is cheaper than 87.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.46 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A cheap valuation may be justified as RWAY's earnings are expected to decrease with -3.52% in the coming years.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y-2.74%
EPS Next 3Y-3.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 12.28%, RWAY is a good candidate for dividend investing.
RWAY's Dividend Yield is a higher than the industry average which is at 7.91.
RWAY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.28% |
5.2 History
RWAY has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RWAY pays out 81.74% of its income as dividend. This is not a sustainable payout ratio.
DP81.74%
EPS Next 2Y-2.74%
EPS Next 3Y-3.52%
10.8
-0.09 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners53.11%
Inst Owner ChangeN/A
Ins Owners1.04%
Ins Owner Change-2.51%
Market Cap391.18M
Analysts75
Price Target11.86 (9.81%)
Short Float %6.32%
Short Ratio7.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 12.28% |
Yearly Dividend1.79
Dividend Growth(5Y)N/A
DP81.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.28%
Min EPS beat(2)-3.83%
Max EPS beat(2)12.39%
EPS beat(4)1
Avg EPS beat(4)-2.5%
Min EPS beat(4)-9.79%
Max EPS beat(4)12.39%
EPS beat(8)2
Avg EPS beat(8)-3.23%
EPS beat(12)5
Avg EPS beat(12)-0.62%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)5.4%
Min Revenue beat(2)2.09%
Max Revenue beat(2)8.71%
Revenue beat(4)2
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-8.26%
Max Revenue beat(4)8.71%
Revenue beat(8)2
Avg Revenue beat(8)-6.1%
Revenue beat(12)5
Avg Revenue beat(12)-2.8%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)3.05%
PT rev (3m)1.64%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)3.56%
Revenue NQ rev (1m)1.25%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 7 | ||
| P/S | 2.77 | ||
| P/FCF | 3.46 | ||
| P/OCF | 3.46 | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.6
EY14.81%
EPS(NY)1.54
Fwd EY14.28%
FCF(TTM)3.12
FCFY28.91%
OCF(TTM)3.12
OCFY28.91%
SpS3.89
BVpS13.77
TBVpS13.77
PEG (NY)N/A
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 14.42% | ||
| ROCE | 5.91% | ||
| ROIC | 4.67% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 4.7% | ||
| OM | 42.59% | ||
| PM (TTM) | 51.03% | ||
| GM | 47.5% | ||
| FCFM | 80.21% |
ROA(3y)4.56%
ROA(5y)5.44%
ROE(3y)9.34%
ROE(5y)9.12%
ROIC(3y)4.92%
ROIC(5y)4.87%
ROICexc(3y)4.94%
ROICexc(5y)4.91%
ROICexgc(3y)4.95%
ROICexgc(5y)4.91%
ROCE(3y)6.23%
ROCE(5y)6.67%
ROICexcg growth 3Y-0.67%
ROICexcg growth 5Y-5.2%
ROICexc growth 3Y-0.69%
ROICexc growth 5Y-5.21%
OM growth 3Y-10.9%
OM growth 5Y-7.82%
PM growth 3Y-7.29%
PM growth 5Y0.32%
GM growth 3Y-11.88%
GM growth 5Y-7.98%
F-Score6
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.03 | ||
| Debt/FCF | 4.56 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 157.19% | ||
| Current Ratio | 0.24 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 0.67 |
F-Score6
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)-12.09%
EPS 3Y12.52%
EPS 5Y5.06%
EPS Q2Q%2.7%
EPS Next Y-2.64%
EPS Next 2Y-2.74%
EPS Next 3Y-3.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.33%
Revenue growth 3Y26.53%
Revenue growth 5Y21.29%
Sales Q2Q%11.12%
Revenue Next Year-5.53%
Revenue Next 2Y-4.1%
Revenue Next 3Y-5.74%
Revenue Next 5YN/A
EBIT growth 1Y-18.43%
EBIT growth 3Y12.73%
EBIT growth 5Y11.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y152.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y152.54%
OCF growth 3YN/A
OCF growth 5YN/A