RUNWAY GROWTH FINANCE CORP (RWAY) Stock Fundamental Analysis
NASDAQ:RWAY - Nasdaq - US78163D1000 - Common Stock - Currency: USD
Overall RWAY gets a fundamental rating of 4 out of 10. We evaluated RWAY against 232 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.
In the past year RWAY had a positive cash flow from operations.
In the past 5 years RWAY has always been profitable.
In multiple years RWAY reported negative operating cash flow during the last 5 years.
1.2 Ratios
RWAY's Return On Assets of 6.14% is fine compared to the rest of the industry. RWAY outperforms 74.57% of its industry peers.
RWAY has a Return On Equity of 12.60%. This is in the better half of the industry: RWAY outperforms 67.24% of its industry peers.
RWAY has a Return On Invested Capital of 4.82%. This is in the better half of the industry: RWAY outperforms 61.64% of its industry peers.
RWAY had an Average Return On Invested Capital over the past 3 years of 4.92%. This is below the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 12.6% | ||
| ROIC | 4.82% |
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
The Profit Margin of RWAY (45.30%) is better than 87.93% of its industry peers.
In the last couple of years the Profit Margin of RWAY has remained more or less at the same level.
With a decent Operating Margin value of 43.34%, RWAY is doing good in the industry, outperforming 76.29% of the companies in the same industry.
In the last couple of years the Operating Margin of RWAY has declined.
RWAY has a Gross Margin (47.69%) which 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 | 43.34% | ||
| PM (TTM) | 45.3% | ||
| GM | 47.69% |
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
RWAY has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.65, we must say that RWAY is in the distress zone and has some risk of bankruptcy.
RWAY's Altman-Z score of 0.65 is in line compared to the rest of the industry. RWAY outperforms 40.52% of its industry peers.
The Debt to FCF ratio of RWAY is 6.59, which is on the high side as it means it would take RWAY, 6.59 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.59, RWAY perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
RWAY has a Debt/Equity ratio of 0.98. This is a neutral value indicating RWAY is somewhat dependend on debt financing.
RWAY has a Debt to Equity ratio (0.98) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 0.65 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.49 indicates that RWAY may have some problems paying its short term obligations.
RWAY has a Current ratio of 0.49. This is in the lower half of the industry: RWAY underperforms 76.72% of its industry peers.
RWAY has a Quick Ratio of 0.49. 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 Quick ratio, with a value of 0.49, RWAY is doing worse than 76.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for RWAY have decreased strongly by -18.04% in the last year.
The Earnings Per Share has been growing slightly by 5.06% on average over the past years.
The Revenue for RWAY has decreased by -15.09% in the past year. This is quite bad
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)-18.04%
EPS 3Y12.52%
EPS 5Y5.06%
EPS Q2Q%-8.7%
Revenue 1Y (TTM)-15.09%
Revenue growth 3Y26.53%
Revenue growth 5Y21.29%
Sales Q2Q%6.01%
3.2 Future
Based on estimates for the next years, RWAY will show a decrease in Earnings Per Share. The EPS will decrease by -3.08% on average per year.
Based on estimates for the next years, RWAY will show a decrease in Revenue. The Revenue will decrease by -4.99% on average per year.
EPS Next Y-5.98%
EPS Next 2Y-2.44%
EPS Next 3Y-3.08%
EPS Next 5YN/A
Revenue Next Year-6.62%
Revenue Next 2Y-3.45%
Revenue Next 3Y-4.99%
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
RWAY is valuated cheaply with a Price/Earnings ratio of 6.10.
RWAY's Price/Earnings ratio is rather cheap when compared to the industry. RWAY is cheaper than 90.52% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, RWAY is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.25, the valuation of RWAY can be described as very cheap.
RWAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. RWAY is cheaper than 94.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RWAY to the average of the S&P500 Index (22.30), we can say RWAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RWAY indicates a rather cheap valuation: RWAY is cheaper than 84.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RWAY's earnings are expected to decrease with -3.08% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y-2.44%
EPS Next 3Y-3.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.46%, RWAY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.15, RWAY pays a better dividend. On top of this RWAY pays more dividend than 84.05% of the companies listed in the same industry.
RWAY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.46% |
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 80.12% of its income as dividend. This is not a sustainable payout ratio.
DP80.12%
EPS Next 2Y-2.44%
EPS Next 3Y-3.08%
9.7
-0.18 (-1.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners56.29%
Inst Owner ChangeN/A
Ins Owners1.14%
Ins Owner Change-0.96%
Market Cap362.30M
Analysts75
Price Target11.67 (20.31%)
Short Float %5.49%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.46% |
Yearly Dividend1.81
Dividend Growth(5Y)N/A
DP80.12%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.81%
Min EPS beat(2)-8.77%
Max EPS beat(2)12.39%
EPS beat(4)1
Avg EPS beat(4)-6.04%
Min EPS beat(4)-18.01%
Max EPS beat(4)12.39%
EPS beat(8)3
Avg EPS beat(8)-1.87%
EPS beat(12)6
Avg EPS beat(12)0.76%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-3.09%
Min Revenue beat(2)-8.26%
Max Revenue beat(2)2.09%
Revenue beat(4)1
Avg Revenue beat(4)-6.18%
Min Revenue beat(4)-11.44%
Max Revenue beat(4)2.09%
Revenue beat(8)2
Avg Revenue beat(8)-6.96%
Revenue beat(12)5
Avg Revenue beat(12)-2.32%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.14%
PT rev (3m)-2.66%
EPS NQ rev (1m)5.2%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)0.67%
EPS NY rev (3m)-6.16%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 6.25 | ||
| P/S | 2.59 | ||
| P/FCF | 4.85 | ||
| P/OCF | 4.85 | ||
| P/B | 0.72 | ||
| P/tB | 0.72 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.59
EY16.39%
EPS(NY)1.55
Fwd EY15.99%
FCF(TTM)2
FCFY20.62%
OCF(TTM)2
OCFY20.62%
SpS3.75
BVpS13.47
TBVpS13.48
PEG (NY)N/A
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.14% | ||
| ROE | 12.6% | ||
| ROCE | 6.1% | ||
| ROIC | 4.82% | ||
| ROICexc | 4.91% | ||
| ROICexgc | 4.91% | ||
| OM | 43.34% | ||
| PM (TTM) | 45.3% | ||
| GM | 47.69% | ||
| FCFM | 53.36% |
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 | 0.98 | ||
| Debt/FCF | 6.59 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.58 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 117.81% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.65 |
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)-18.04%
EPS 3Y12.52%
EPS 5Y5.06%
EPS Q2Q%-8.7%
EPS Next Y-5.98%
EPS Next 2Y-2.44%
EPS Next 3Y-3.08%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.09%
Revenue growth 3Y26.53%
Revenue growth 5Y21.29%
Sales Q2Q%6.01%
Revenue Next Year-6.62%
Revenue Next 2Y-3.45%
Revenue Next 3Y-4.99%
Revenue Next 5YN/A
EBIT growth 1Y-22.89%
EBIT growth 3Y12.73%
EBIT growth 5Y11.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y120.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y120.81%
OCF growth 3YN/A
OCF growth 5YN/A