RUNWAY GROWTH FINANCE CORP (RWAY) Stock Fundamental Analysis
USA - NASDAQ:RWAY - US78163D1000 - Common Stock
8.85 USD
-0.12 (-1.34%)
8.85 USD
0 (0%)
Taking everything into account, RWAY scores 5 out of 10 in our fundamental rating. RWAY was compared to 237 industry peers in the Capital Markets industry. There are concerns on the financial health of RWAY while its profitability can be described as average. RWAY has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year RWAY was profitable.
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
With a decent Return On Assets value of 5.70%, RWAY is doing good in the industry, outperforming 75.95% of the companies in the same industry.
RWAY's Return On Equity of 11.22% is fine compared to the rest of the industry. RWAY outperforms 65.40% of its industry peers.
The Return On Invested Capital of RWAY (5.07%) is better than 65.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RWAY is below the industry average of 7.11%.
The 3 year average ROIC (4.92%) for RWAY is below the current ROIC(5.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 11.22% | ||
| ROIC | 5.07% |
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
Looking at the Profit Margin, with a value of 38.92%, RWAY belongs to the top of the industry, outperforming 84.39% of the companies in the same industry.
In the last couple of years the Profit Margin of RWAY has remained more or less at the same level.
RWAY's Operating Margin of 42.46% is fine compared to the rest of the industry. RWAY outperforms 77.22% of its industry peers.
In the last couple of years the Operating Margin of RWAY has declined.
RWAY has a Gross Margin of 47.92%. This is comparable to the rest of the industry: RWAY outperforms 58.65% of its industry peers.
In the last couple of years the Gross Margin of RWAY has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.46% | ||
| PM (TTM) | 38.92% | ||
| GM | 47.92% |
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
The number of shares outstanding for RWAY has been increased compared to 5 years ago.
Compared to 1 year ago, RWAY has a worse debt to assets ratio.
2.2 Solvency
RWAY has an Altman-Z score of 0.65. This is a bad value and indicates that RWAY is not financially healthy and even has some risk of bankruptcy.
RWAY has a Altman-Z score (0.65) which is in line with its industry peers.
The Debt to FCF ratio of RWAY is 2.47, which is a good value as it means it would take RWAY, 2.47 years of fcf income to pay off all of its debts.
RWAY has a better Debt to FCF ratio (2.47) than 84.39% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that RWAY is somewhat dependend on debt financing.
RWAY has a Debt to Equity ratio (0.91) which is comparable to the rest of the industry.
Although RWAY does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 0.65 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.27 indicates that RWAY may have some problems paying its short term obligations.
The Current ratio of RWAY (0.27) is worse than 83.12% of its industry peers.
A Quick Ratio of 0.27 indicates that RWAY may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.27, RWAY is doing worse than 82.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
RWAY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.14%.
Measured over the past 5 years, RWAY shows a small growth in Earnings Per Share. The EPS has been growing by 5.06% on average per year.
The Revenue has decreased by -6.00% in the past year.
RWAY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.29% yearly.
EPS 1Y (TTM)-4.14%
EPS 3Y12.52%
EPS 5Y5.06%
EPS Q2Q%4.88%
Revenue 1Y (TTM)-6%
Revenue growth 3Y26.53%
Revenue growth 5Y21.29%
Sales Q2Q%0.26%
3.2 Future
RWAY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.75% yearly.
Based on estimates for the next years, RWAY will show a small growth in Revenue. The Revenue will grow by 0.04% on average per year.
EPS Next Y-1.99%
EPS Next 2Y-2.51%
EPS Next 3Y-2.75%
EPS Next 5YN/A
Revenue Next Year-4.71%
Revenue Next 2Y-2.53%
Revenue Next 3Y0.04%
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.
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 5.46.
Based on the Price/Earnings ratio, RWAY is valued cheaply inside the industry as 91.98% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.07. RWAY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.71 indicates a rather cheap valuation of RWAY.
RWAY's Price/Forward Earnings ratio is rather cheap when compared to the industry. RWAY is cheaper than 94.09% of the companies in the same industry.
RWAY is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.71 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, RWAY is valued cheaper than 93.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.78 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
RWAY has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RWAY's earnings are expected to decrease with -2.75% in the coming years.
PEG (NY)N/A
PEG (5Y)1.08
EPS Next 2Y-2.51%
EPS Next 3Y-2.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.43%, RWAY is a good candidate for dividend investing.
RWAY's Dividend Yield is rather good when compared to the industry average which is at 8.49. RWAY pays more dividend than 83.12% of the companies in the same industry.
RWAY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.43% |
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
99.20% of the earnings are spent on dividend by RWAY. This is not a sustainable payout ratio.
DP99.2%
EPS Next 2Y-2.51%
EPS Next 3Y-2.75%
8.85
-0.12 (-1.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners55.06%
Inst Owner ChangeN/A
Ins Owners1.07%
Ins Owner Change-1.54%
Market Cap319.75M
Revenue(TTM)141.07M
Net Income(TTM)54.90M
Analysts74.12
Price Target11.53 (30.28%)
Short Float %5.59%
Short Ratio6.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.43% |
Yearly Dividend1.79
Dividend Growth(5Y)N/A
DP99.2%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.51%
Min EPS beat(2)-3.83%
Max EPS beat(2)6.85%
EPS beat(4)2
Avg EPS beat(4)1.66%
Min EPS beat(4)-8.77%
Max EPS beat(4)12.39%
EPS beat(8)2
Avg EPS beat(8)-4.02%
EPS beat(12)5
Avg EPS beat(12)-0.12%
EPS beat(16)9
Avg EPS beat(16)1.12%
Revenue beat(2)2
Avg Revenue beat(2)5.94%
Min Revenue beat(2)3.18%
Max Revenue beat(2)8.71%
Revenue beat(4)3
Avg Revenue beat(4)1.43%
Min Revenue beat(4)-8.26%
Max Revenue beat(4)8.71%
Revenue beat(8)3
Avg Revenue beat(8)-4.3%
Revenue beat(12)5
Avg Revenue beat(12)-2.67%
Revenue beat(16)7
Avg Revenue beat(16)-1.57%
PT rev (1m)-2.45%
PT rev (3m)0.17%
EPS NQ rev (1m)-0.71%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-1.74%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0.58%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 5.71 | ||
| P/S | 2.27 | ||
| P/FCF | 1.78 | ||
| P/OCF | 1.78 | ||
| P/B | 0.65 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)1.62
EY18.31%
EPS(NY)1.55
Fwd EY17.51%
FCF(TTM)4.97
FCFY56.16%
OCF(TTM)4.97
OCFY56.16%
SpS3.9
BVpS13.55
TBVpS13.55
PEG (NY)N/A
PEG (5Y)1.08
Graham Number22.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 11.22% | ||
| ROCE | 6.42% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 5.12% | ||
| OM | 42.46% | ||
| PM (TTM) | 38.92% | ||
| GM | 47.92% | ||
| FCFM | 127.29% |
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%
ROICexgc growth 3Y-0.67%
ROICexgc 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-Score8
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 1.62 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 327.06% | ||
| Current Ratio | 0.27 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 0.65 |
F-Score8
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)-4.14%
EPS 3Y12.52%
EPS 5Y5.06%
EPS Q2Q%4.88%
EPS Next Y-1.99%
EPS Next 2Y-2.51%
EPS Next 3Y-2.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-6%
Revenue growth 3Y26.53%
Revenue growth 5Y21.29%
Sales Q2Q%0.26%
Revenue Next Year-4.71%
Revenue Next 2Y-2.53%
Revenue Next 3Y0.04%
Revenue Next 5YN/A
EBIT growth 1Y-11.18%
EBIT growth 3Y12.73%
EBIT growth 5Y11.8%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y931.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y931.34%
OCF growth 3YN/A
OCF growth 5YN/A
RUNWAY GROWTH FINANCE CORP / RWAY FAQ
What is the fundamental rating for RWAY stock?
ChartMill assigns a fundamental rating of 5 / 10 to RWAY.
What is the valuation status of RUNWAY GROWTH FINANCE CORP (RWAY) stock?
ChartMill assigns a valuation rating of 7 / 10 to RUNWAY GROWTH FINANCE CORP (RWAY). This can be considered as Undervalued.
How profitable is RUNWAY GROWTH FINANCE CORP (RWAY) stock?
RUNWAY GROWTH FINANCE CORP (RWAY) has a profitability rating of 6 / 10.
What is the valuation of RUNWAY GROWTH FINANCE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RUNWAY GROWTH FINANCE CORP (RWAY) is 5.46 and the Price/Book (PB) ratio is 0.65.
What is the earnings growth outlook for RUNWAY GROWTH FINANCE CORP?
The Earnings per Share (EPS) of RUNWAY GROWTH FINANCE CORP (RWAY) is expected to decline by -1.99% in the next year.